18 October, 2025
australian-workforce-faces-burnout-crisis-as-millions-consider-quitting

Millions of Australians are contemplating leaving their jobs in 2026, driven by a pervasive wave of workplace burnout that continues to impact the nation. According to new research from Allianz Australia, nearly 80 percent of employee respondents and almost 66 percent of surveyed managers do not believe their organizations enforce effective workplace habits and boundaries.

The study highlights that 78 percent of managers identified systemic barriers exacerbating the issue, including a lack of time and resources, inadequate technology, and conflicting workplace priorities. Meanwhile, 59 percent of employees reported experiencing work-related mental distress, often triggered by workload pressure, meeting overload, and unrealistic expectations.

Systemic Challenges and Employee Wellbeing

On average, Australian employees claim they spend 3.31 hours each week on tasks or meetings deemed “unnecessary,” with 32 percent feeling unable to take proper breaks. Despite the introduction of new right-to-disconnect laws, 19 percent of employees find it challenging to disconnect from work due to technology, and 25 percent say cost-of-living concerns are affecting their workplace performance.

Alarmingly, 2.73 million Australians are considering quitting their jobs in the next 12 months. Allianz’s data indicates a 28.4 percent increase in mental distress compensation claims between the 2021 and 2025 financial years, with the average time off per claim rising 10 percent to 81 days.

“Our claims data tells us that mental stress and work pressure is the second highest contributor of primary active psychological claims (34 percent),” stated Mark Pittman, Allianz Australia executive general manager for personal injury. “While Allianz works to support injured workers who have been harmed by workplace stress, we recognize that the best outcomes are achieved through prevention.”

Calls for Change and Preventative Measures

In response, Allianz is urging workplaces to “unschedule the burnout” by offering a range of online resources. The research also revealed that a vast majority of employees struggle to schedule personal time and face pressures outside work, such as household duties, caregiving, and unsupported parenting responsibilities like school drop-offs.

Furthermore, only a small minority of managers believe their workplace is adequately equipped to support working parents and carers. Allianz advocates for a holistic approach to employee wellbeing, emphasizing the need for job design that ensures manageable workloads, a natural ebb and flow to work demands, adequate recovery time during work hours, and ground rules for disconnecting after-hours.

“Allianz is calling on Australian workplaces to take a holistic view of employee wellbeing,” said Brianna Cattanach, Allianz Australia national manager for mental health strategy in personal injury. “Business leaders can support this through job design that ensures: manageable workloads, a natural ebb and flow to work demands, adequate ‘recovery’ time during work hours and ground rules for disconnecting after-hours.”

Expert Insights and Employee Advocacy

Helen Lawson Williams, co-founder of the anti-burnout program TANK, emphasized that burnout can vary from person to person but should not be considered an inevitable part of the job. She advises employees to recognize when their stress and recovery balance is off, which might manifest as fatigue, overwhelm, irritability, or diminished interest in their work.

“Employees can start by recognizing when their stress (and) recovery balance is off, which could feel like fatigue, overwhelm, irritability, or caring less about their work than usual,” she said. “Speak up before things escalate, and be specific about what’s making it harder to limit stress or recover well – whether it’s meeting overload, lack of breaks, unrealistic deadlines or inability to focus due to pressures outside the workplace.”

The announcement comes as Australian workplaces face increasing pressure to address mental health and wellbeing amid a shifting economic landscape. As organizations grapple with these challenges, the focus on employee support and systemic change will be crucial in preventing further workforce attrition and ensuring sustainable work environments.