More than two-thirds (67 per cent) of U.S. employees say concerns about a recession are impacting their mental health, according to a new survey by Principal Financial Group.

The survey, which polled 500 employers and 200 employees, found this percentage increased among millennials (79 per cent) and generation Z (76 per cent).

Nearly three-quarters of employees (74 per cent) and employers (70 per cent) said they believe it’s somewhat or very likely a recession will happen in the next six months.

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The survey also noted that, ahead of a looming recession, employers are choosing to reduce operational expenses or raise prices instead of cutting employee salaries and benefits.

Nearly two-thirds (64 per cent) of small- and medium-sized employers said they won’t reduce wages compared to 49 per cent of large employers. Indeed, nearly two-thirds (63 per cent) of all employees reported a salary increase within the past year. Similarly, 57 per cent of SMEs and 45 per cent of large employers said they won’t reduce employee benefits.

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