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Amid ongoing geopolitical tension, the U.S. trade war and the rising cost of living, it’s important for employers to provide a psychological safe workplace, says Alan King, president and chief executive officer of consultancy Workplace Options.

“There’s a level of uncertainty that comes when you hear and experience the things that are going on. But employers recognize they have a responsibility for the emotional well-being of their employees.”

Read: How to build a psychologically safe workplace

According to a March report by Mental Health Research Canada, 42 per cent of Canadians reported increased anxiety. While 52 per cent reported the cost of living as the main source of this anxiety, 38 per cent cited political tensions and uncertainty around Canada’s relationship with the U.S.

Similarly, a recent Leger poll of 1,500 Canadian employees found two-fifths (38 per cent) said they’re worried about losing their jobs over the next year due to U.S. tariffs on Canadian imports. In some industries, that’s already happening.

“There are a few companies in manufacturing and steel that are already laying off individuals and trying to restructure to meet the tariff responses and the instability happening around it,” says Dina El Helou, vice-president of service delivery for the Americas at Workplace Options.

Read: 60% of Indigenous workers feel psychologically unsafe on the job: survey

The consultancy’s recent psychological workplace safety report, which analyzed conversations between employees and clinicians across 18 countries, found the top concern for Canadians is work-life balance. El Helou attributes this finding in part to in-person work post-pandemic. “Time previously used for personal activities is now being consumed by commuting and work-related tasks, leading to increased stress.”

However, she notes, “with the [current] economic climate, we see that job descriptions have shifted. Employees are seeing themselves go beyond that 40-hour week, which was more balanced and stable. That has really played a role in increasing that perception of difficulty and challenge in balancing personal and professional responsibilities, particularly in Canada over the last four months with everything we’re seeing economically.”

“Employees are being called to come up with extremely creative solutions to quite complex problems. If there’s no psychological safety, creativity is going to be stunted.”

Read: 70% of Canadian employees say employer fosters trusting, safe workplace but challenges remain: survey

Employers can provide psychological safety by communicating clearly, she says. “Make sure everybody at different levels has the important information in hand — [employers should ask themselves] ‘How transparent can I be to really communicate this is the unknown, but this is what we do know and this is how you can contribute.’”

The second step to consider is employee programs and resources. Organizations need to remind their workforce of available benefits and employee assistance programs, as well as to arrange training to support employees’ emotional and physical health, notes El Helou. “This is particularly important, as people tend to forget about available resources during times of stress.”

However, King stresses the most important thing for employers to do is be open and honest. “Some organizations are saying, ‘The world is a little bit different right now and we’re going to figure out how to get through this, but we’re going to figure it out together.’ Those are incredibly valuable statements to make. They don’t change the world, but they create that safe space.”

Read: Are workplace mental-health programs evolving beyond the National Standard for Psychological Health and Safety in the Workplace?