U.S. employee engagement falls below 30% for first time in 15 years

Employee engagement in the United States fell below 30% for the first time in 15 years, according to a Gallup analysis that points to manager support as the factor most closely associated with workers’ connection to their jobs.

In the third quarter of 2026, 29% of U.S. employees were engaged at work, down from 31% in the previous quarter and the lowest level since 2011, according to the Gallup report. At the same time, active disengagement rose to 18%, and 53% of employees were not engaged. Gallup estimated that workers who are not engaged or actively disengaged cost the U.S. economy about $2 trillion annually in lost productivity.

Gallup defines employee engagement as workers’ involvement in and enthusiasm for their work and workplace. The firm has linked engagement to organizational outcomes including productivity, customer service, quality, safety, profitability, turnover, and employee wellbeing.

The report found that employees continue to struggle with key workplace needs. Fewer workers said they had opportunities to learn and grow, and fewer said someone at work encourages their development.

Managers are a key part of the solution, but they also are struggling, Gallup said.

“The findings point to one factor more strongly associated with employee engagement than any other: manager support,” Gallup said. Organizations looking to improve engagement and productivity should focus as much on developing and supporting managers as they do on investing in new technology, Gallup said.

Employees whose managers actively supported their use of AI reported substantially higher engagement than those whose managers did not. Organizations that combined frequent AI use, a clear AI strategy, and active manager support achieved engagement rates of 53%, according to the analysis.

Manager engagement itself has been under pressure. In Gallup’s broader report, State of the Global Workplace 2026, manager engagement fell nine percentage points between 2022 and 2025, including a five-point decline from 2024 to 2025. The firm said managers account for at least 70% of the variance in team engagement, giving them an outsized influence on workplace performance.

Managers face growing demands as organizations contend with economic uncertainty, evolving workplace expectations, and the rollout of AI tools, Gallup said. Managers are increasingly expected to support employee development, guide organizational change, and help workers incorporate new technology into their jobs.

While many organizations are investing heavily in AI, Gallup said technology alone is unlikely to improve engagement or productivity. The firm’s research suggests organizations are more likely to see positive results when managers are equipped to support employees through workplace change and help them make effective use of new tools.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.