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

U.S. employee engagement fell to 29% in the third quarter of 2026, down from 31% in the previous quarter and the lowest level since 2011, Gallup reported. The result marks the first time the measure has fallen below 30% in 15 years.

Gallup also reported that 53% of employees were not engaged, while active disengagement rose to 18%. It estimates about $2 trillion in annual U.S. productivity losses from workers who are not engaged or actively disengaged. Manager support is the factor most closely associated with engagement, making manager development and employee learning central people-process decisions.

What does the engagement decline mean for HR?

Gallup defines engagement as workers’ involvement and enthusiasm for their work and workplace, then links the measure to productivity, customer service, quality, safety, profitability, turnover and employee wellbeing.

Fewer workers said they had opportunities to learn and grow. The share saying someone at work encouraged their development also fell, according to Gallup. These gaps place employee development and manager capability near the center of any response to the 29% reading, rather than leaving engagement as a stand-alone survey score.

Why do managers carry so much weight?

Gallup said organizations seeking better engagement and productivity should invest as much in developing and supporting managers as they do in new technology. The recommendation comes as managers face growing demands tied to economic uncertainty, evolving workplace expectations and the rollout of AI tools.

“The findings point to one factor more strongly associated with employee engagement than any other: manager support,” Gallup said.

Gallup named three areas in which employers increasingly expect managers to perform:

• Support employee development.
• Guide organizational change.
• Help workers incorporate new technology into their jobs.

The pressure is visible in managers’ own engagement. Manager engagement fell nine percentage points between 2022 and 2025 in Gallup’s State of the Global Workplace 2026, including a five-point decline from 2024 to 2025.

Gallup estimates that managers account for at least 70% of the variance in team engagement. The firm says that share gives managers an outsized influence on workplace performance. Their own declining engagement therefore matters beyond a management-labor metric.

Can AI improve engagement without stronger manager support?

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

Gallup cautions that technology alone is unlikely to improve engagement or productivity, even as many organizations invest heavily in AI. Its research suggests employers are more likely to see positive results when managers can support employees through workplace change and help them make effective use of new tools.

The finding turns AI adoption into a management-capacity question. Employers need to determine whether tools have a clear strategy, whether use is frequent and whether managers have the support and ability to help employees apply the technology effectively. Gallup’s 53% rate applies to organizations with all three conditions, not AI use alone.

What should employers do next?

Three decisions follow from Gallup’s findings for HR and business leaders:

• Develop and support managers with the same attention Gallup recommends giving to new technology.
• Pair frequent AI use with a clear AI strategy and active manager support, the three conditions behind Gallup’s 53% engagement rate.
• Review whether employees have opportunities to learn and grow and whether someone at work encourages their development.

These actions target the two conditions Gallup found under strain: employee development opportunities and manager capacity. They also test whether AI spending produces a working environment where employees can use new tools effectively, rather than merely increasing access to technology.

The next test is whether employers can turn stronger manager support into higher engagement while AI adoption and workplace expectations keep changing. Gallup’s research says technology will not carry that shift on its own; managers must be equipped to support employees through the transition.