Great news – but 'maintaining this advantage will require more than momentum'
As workplace wellbeing continues to define global competitiveness and employee retention, Australia has emerged as one of the world’s top-ranking nations for life satisfaction, according to Gallup’s newly released State of the Global Workplace 2025 report.
With 60 per cent of Australians reporting they are “thriving”, the country outpaces most developed economies—including the United Kingdom (51%) and Japan (42%)—and lands in the top tier alongside Nordic nations like Finland and Denmark.
However, the report also reveals a growing undercurrent of stress and declining engagement among managers that could put that high standing at risk.
Gallup’s “life evaluation” metric, which measures how people perceive their present and future quality of life, places Australia sixth globally. This ranking reflects the country’s strong social safety net, economic stability, and sustained efforts to support mental health and wellbeing at work.
“Australia’s high life satisfaction score reflects years of investment in wellbeing infrastructure and flexible workplace policies,” the report states.
“But maintaining this advantage will require more than momentum—it demands adaptation.”
Despite the strong topline figures, the data tells a more complex story when it comes to day-to-day experience at work. Australians report rising levels of stress, echoing a broader trend across the Asia-Pacific region. Gallup’s global figures show that nearly half of all employees worldwide felt stress “a lot” the previous day—a rate Australia is not exempt from.
The real pressure point, however, lies with people managers. Globally, engagement among managers fell from 30% to 27%, and in Australia, early indicators show a parallel drop. This is particularly concerning given the outsized influence managers have on team morale and performance.
“A disengaged manager leads to disengaged teams—it’s as simple as that,” says Claire Preen, Director of Intelligence at Insurance Business. “Burnout in leadership is a warning sign that HR leaders can’t afford to ignore.”
Gallup outlines several action points that Australian HR leaders can take to maintain wellbeing momentum and address hidden stressors:
Provide structured support for managers, especially those early in their leadership journey.
Build coaching into management practices, shifting from supervision to development.
Link wellbeing directly to performance metrics, recognising that engagement is not a perk—it’s a productivity multiplier.
As Australia faces new workplace challenges—from AI disruption and hybrid models to multigenerational teams—this year’s Gallup report is both a cause for optimism and a cautionary tale. The country is in an enviable position now, but continued success will depend on how quickly organisations act to protect and promote the wellbeing of their people.
In a world of global talent competition and shifting expectations, it’s not enough to lead the scoreboard. The future belongs to workplaces that take wellbeing seriously—and build it into the very fabric of work.
