Rising living and health-care costs continued to weigh on workers in 2025, even as employers increased spending on benefits, according to a new survey from the Metropolitan Life Insurance Co.
The survey, which polled more than 2,400 U.S. employers and more than 2,500 employees, found fewer than half of employees reported feeling holistically healthy, while employers ranked controlling health-care costs as their top benefits priority for the first time since 2022.
More than eight in 10 employees said rising living expenses and medical costs were their top stressors, while 77 per cent cited economic uncertainty. On average, employees missed 6.1 days of work due to health-related issues and half said they avoided seeking medical care because of out-of-pocket costs.
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At the same time, 60 per cent of employers increased their investment in benefits and 62 per cent expanded non-medical offerings, including dental coverage, disability insurance and financial wellness tools. Despite those investments, employee well-being, engagement and productivity remained largely flat, the study found.
Employers reported a strong business case for investing in holistic health, estimating an average return of $2.30 for every $1 spent through improved productivity, retention and lower medical costs. Employees who reported being holistically healthy were also more productive and took fewer sick days.
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The research also highlighted the importance of benefit use, not just availability. Employees who used multiple non-medical benefits were significantly more likely to report better overall health, while nearly two-thirds said those benefits were essential to accessing preventive care.