The state of mental health in the Irish workforce

Irish employers face a stark contradiction. Whilst three-quarters recognise their responsibility towards employee mental health, only one-third have implemented organisational responses to support it, and just one-fifth have allocated dedicated budgets for mental health initiatives [1]. This gap between intention and action reveals a fundamental challenge facing Irish businesses as they navigate work environments where mental health concerns have intensified rather than abated.

The scale of the problem is substantial. Mental health issues cost the Irish economy approximately eleven billion euros annually, largely through lost productivity [2]. The Irish Business and Employers Confederation estimates that eleven million days are lost through absenteeism every year at a cost of €1.5 billion, or €818 per employee [3]. Yet despite widespread recognition of these costs, meaningful investment in workplace mental health support remains the exception rather than the rule.

Ireland’s position

Recent data paints a particularly troubling picture of Ireland’s standing internationally. According to Eurofound’s Mind Health Report 2025, Ireland has the lowest average Mind Health score among nine EU countries surveyed, with forty-eight per cent of the population reporting they are struggling or languishing, compared to thirty-seven per cent in Switzerland, which had the highest score [4]. This represents a significant deterioration in national mental health, occurring despite a twenty per cent increase in Ireland’s mental health workforce over the past five years [5].

The workplace dimension of this crisis is especially pronounced. Nicole Paulie, Chartered Counselling Psychologist and Clinical Lead at laya healthcare’s 24/7 Mental Wellbeing Support Programme, notes that the Mind Health Report 2025 “mirrors the laya healthcare Workplace Wellbeing research over the last five years, highlighting the growing mental health needs of adults in Ireland” [6]. The research reveals that fifty-one per cent of Irish employees cite their salary level as negatively impacting their mental wellbeing, placing Ireland sixth among EU countries [7].

The consequences manifest in multiple ways. A substantial seventy-eight per cent of Irish employees who report work-related stress name at least one impact in their daily lives, with common issues including difficulty sleeping (forty per cent), increased irritability and mood swings (thirty-four per cent), and physical symptoms like headaches (thirty-four per cent) [8]. In the workplace itself, thirty per cent of employees experiencing stress report decreased motivation and productivity, whilst ten per cent report increased absenteeism or lateness [9].

Implementation gap

Research from Cork University Business School surveying 1,501 Irish firms reveals the extent of the implementation gap [8]. Eighteen per cent of companies experience employee absenteeism due to mental health reasons, rising to forty per cent among firms with fifty or more employees [8]. More than half of employers report that the proportion of absenteeism due to mental ill-health has increased in the last twelve months, and sixty-four per cent state that sickness absence adversely impacts business performance [10].

Despite this, the adoption of mental health support initiatives remains limited. The most widely adopted measure — having a health and wellbeing lead at board or senior level — exists in just thirty-two per cent of businesses [11]. Only twenty-three per cent have a mental health plan, twenty-two per cent use data to monitor employee health and wellbeing, and a mere ten per cent employ mental health champions. In-house mental health support and signposting of services is provided by twenty-nine per cent of firms [12].

The reluctance to invest is particularly evident in budget allocation. Eighty per cent of Irish employers do not have a dedicated budget for mental health and wellbeing [8]. As the Cork University Business School research notes, “This suggests a disparity in employers’ recognition of their responsibilities to and investment in workplace mental health and well-being. It also suggests that employers are more likely to implement mental health and well-being initiatives that do not involve a financial outlay” [13].

Firm size creates a stark divide in provision. Amongst larger firms with fifty or more employees, fifty-seven per cent implement in-house mental health support and signposting of services, compared to just twenty per cent of firms with ten to nineteen employees [14]. Similarly, forty-two per cent of larger firms have a mental health budget compared to thirteen per cent of smaller firms [15]. From a sectoral perspective, employers in business and non-business services are more likely to have a mental health budget (twenty-nine per cent) compared to employers in wholesale and retail (eleven per cent) and construction (twelve per cent) [16].

International comparison

When benchmarked against England, Irish firms demonstrate notably less engagement with mental health support despite reporting somewhat lower incidences of mental health absence. The proportion of Irish firms reporting incidents of mental health sickness absence (eighteen per cent) is lower than in England (twenty-six per cent), a pattern repeated across sectors and firm size bands [17]. However, Irish firms are notably less likely to have a mental health plan (twenty-three per cent versus thirty-one per cent in England), a mental health lead at board level (thirty-two per cent versus forty-three per cent), and are significantly less likely to monitor employee wellbeing (twenty-two per cent versus forty-four per cent) [18].

Conversely, presenteeism — working whilst unwell — is reported by twenty-seven per cent of Irish firms, higher than the twenty-one per cent reporting it in England [19]. Irish employers attribute this primarily to the need to meet deadlines and client demand (thirty-nine per cent) compared to twenty-seven per cent of English businesses [20].

Stigma

Persistent stigma continues to inhibit open discussion about mental health in Irish workplaces. St Patrick’s Mental Health Services’ annual survey of one thousand adults found that forty-seven per cent were unaware that employers are obliged to provide reasonable accommodations for staff experiencing mental health difficulties, whilst forty-two per cent would not be comfortable explaining to their boss that they needed time off for such difficulties [21]. Thirty-seven per cent of respondents cited work-related issues as a factor influencing their mental wellbeing, yet thirty-nine per cent do not believe that someone who experiences panic attacks could work as head of a large company [22].

The survey also revealed that fifty-two per cent believe Irish workplaces are not open to employing people with mental health difficulties [23]. Paul Gilligan, CEO of St Patrick’s Mental Health Services, acknowledges that whilst attitudes are gradually improving, substantial work remains: “Most organisations still see mental health as a challenge, but in reality, good mental health in the workplace is the foundation on which success is built. Coming to work should enhance our mental health, rather than impact it negatively” [24].

The fear of disclosure is particularly acute amongst those living with mental health conditions. Laya healthcare’s Workplace Wellbeing Index 2025 revealed that one in two employees report living with an underlying health condition or mental wellbeing issue, with anxiety and depression as the most cited conditions [25]. However, fifty-four per cent of those with a health condition or disability admit they would be embarrassed to speak to their employer about it, whilst one in two with a mental health condition fear being treated differently if they disclose it to their employer [26].

Sinéad Proos, Head of Health and Wellbeing at laya healthcare, emphasises the importance of addressing this communication breakdown: “Employers and employees need to communicate more openly about health conditions and disabilities. Not having a diagnosis or feeling unable to discuss needed support can cause unnecessary stress and hardship for team members. It’s crucial that organisations prioritise clear communication about health and wellbeing resources, making them easily accessible so employees can get the support they deserve” [27].

The disclosure challenge extends beyond mental health to other dimensions of diversity. Fifteen per cent of employees report living with a neurodiverse condition, yet less than half have told their employers [28]. Similarly, one in ten employees identifies as LGBTQ+, yet sixty-eight per cent of HR leaders were either unaware of any LGBTQ+ people in their organisations or put their estimate at five per cent [29]. Gay, lesbian, or bisexual employees are more likely than their straight peers to report feeling lonely on a daily basis and more likely to feel disconnected from colleagues [30].

Coping

Perhaps most concerning are findings about how employees cope with workplace pressures. The laya healthcare Workplace Wellbeing Index revealed that sixteen per cent of employees are addicted to or have an unhealthy relationship with Class A or illicit drugs. Two in five Irish workers report addiction to or an unhealthy relationship with at least one substance, with nicotine (twenty-nine per cent) and alcohol (twenty-one per cent) being most prevalent [31].

As Sinéad Proos observes: “Employers should recognise addiction as a serious issue impacting Irish workplaces, encompassing substance use, gambling and social media. While these results are concerning, they also present a valuable opportunity for employers to prioritise employee wellbeing. By fostering a supportive culture and providing access to resources like counselling and employee assistance programs, we can support and empower employees to make the first steps towards improving their health and wellbeing” [32].

Financial stress emerges as a particularly significant driver of poor mental health. Brian O’Donovan, Health and Wellness Service Development Manager at laya healthcare, notes: “We’ve seen overall intense anxiety reduce slightly which is good news but financial concerns are still the biggest drivers of anxiety. While concerns about the Irish economy dropped significantly, smaller drops were found in concerns about personal money worries and financial wellbeing” [33]. This aligns with broader Eurofound findings that thirty-two per cent of the Irish population cite the current economic climate and twenty-six per cent cite the housing crisis as negatively affecting their mental health [34].

Access

Beyond workplace support, access to mental health services remains a critical barrier in Ireland. Eurofound’s analysis shows that in 2023, nearly forty per cent of people who delayed seeking help cited stigma or fear of judgement, whilst a third did not know where to turn [35]. Shortages and long waiting times, particularly for child and adolescent services, compound the problem, with seventeen per cent of people in rural areas citing a lack of local services [36]. Although free counselling is available in some areas, waiting times and other accessibility issues often mean that the private sector is the only feasible option.

A stark two-tier system exists for accessing mental health services, with the public system plagued by long delays and under-resourcing whilst private services offer faster access but at prohibitive cost. Mental Health Reform, a coalition of charities, warns that if Ireland is to meet a long-standing target of ten per cent of the health budget being allocated to mental health by 2030, as set out in Sláintecare, then there needs to be a real change of gear. Currently, under six per cent of the total health budget is allocated to mental health [37].

Dr Louise Rooney, Policy and Research Manager at Mental Health Reform, notes: “In 2023, the European Union revealed that Ireland was the most difficult country in Europe in which to access mental health services. In fact, last year we spent approximately €93 million on outsourcing mental health care, made up of €13 million for the Treatment Abroad Scheme, and €79.66 million for private mental health services — funds that could instead be redirected to build our own public and voluntary service capacity” [38].

Investment

Despite the clear need and business case for workplace mental health investment, understanding of the potential returns remains limited. International research demonstrates that investment in manager mental health training programmes can lead to significant reductions in work-related sickness absence, with an associated return on investment of £9.98 for each pound spent on such training [39]. Organisations implementing comprehensive mental health support report increased staff morale, reduced absenteeism and presenteeism, improved work performance and productivity, and enhanced recruitment and retention.

The Health Service Executive’s experience during the pandemic demonstrates what comprehensive, coordinated support can achieve. The HSE Workplace Health and Wellbeing Unit mobilised and adapted pre-existing structures to safeguard mental health, including an Employee Assistance Programme providing free, confidential counselling; a National Health and Safety Function implementing psychosocial risk management; and Organisational Health Services supporting evidence-based best practices. Analysis showed that Covid-related absence accounted for 2.8 per cent of total 2021 absence, whilst the overall absence rate in 2020 (6.1 per cent) was 1.4 percentage points higher than in 2019 (4.7 per cent) [40].

However, as the Cork University Business School research questions: “Why are Irish employers, the majority of whom acknowledge their responsibilities, not investing in workplace mental health and wellbeing to a greater extent? It may be that the business case for investing in mental health and wellbeing is unclear to Irish businesses. In the international literature, the wealth of practices and interventions in use, and the lack of standardisation of approach, makes comparison of firm approaches challenging” [41].

Moving forward

The evidence suggests that addressing workplace mental health requires more than acknowledgement. It demands investment, structural change, and genuine commitment. Until Irish employers close the gap between acknowledging their responsibilities and investing in comprehensive mental health support, the workplace will continue to suffer in silence. With Ireland now ranking bottom of EU mental health rankings and mental health-related absence increasing post-pandemic, the cost of continued inaction is high.