Navigating a changing economy and AI worries are leading American workers to remain in their jobs, according to Mercer’s 2026 Inside Employees’ Minds report.

The Marsh subsidiary explored the pressures facing U.S. workers in a survey of more than 4,500 U.S. workers.

According to the report, “employees are opting for the status quo while calling on employers to provide more transparency on pay and AI’s impact on roles, and to prioritize skill development and flexible work arrangements.”

While the volatile economy continues to concern employees, their top worry is covering monthly expenses, followed by job security, retirement readiness, and work-life balance.

Seventy percent of American workers reported increased financial stress due to inflation and market volatility, while 76% worry about the broader economic impact of tariffs, and 56% fear job-related consequences.

Fewer employees reported reducing discretionary spending (38%, down from 51% in 2023) or tapping into savings (32%, down from 37% in 2023) to manage financial challenges, the report found.

Unexpected expenses, like healthcare costs (expected to rise 6.7% this year), continue to affect lower-wage workers disproportionately.

Pay is the strongest driver of both attraction (37%) and retention (32%), with healthcare benefits ranking as the second most important factor influencing employees’ decision to stay.

Pay transparency and perceived fairness have become baseline expectations among employees, the report also found, with more than four in ten candidates indicating they would not apply for a job if pay ranges are not disclosed, reflecting how informal pay benchmarking among peers has become more routine.

AI concerns persist with workers worrying about workloads during implementation and job security.

“For employers, AI adoption is a challenge, but it should also be a catalyst,” said Adam Pressman, Mercer’s US & Canada Employee Research leader. “Employees want to understand their employers’ AI roadmap. When organizations manage workloads, clarify skill priorities, and invest meaningfully in development, AI can become a pathway for growth for both employers and employees, rather than a source of fear.”

Nearly a quarter of workers regularly experiment with AI tools, while another quarter have yet to start, reflecting uneven adoption and preparedness.

The gap is more pronounced in retail and healthcare, where around 40% of workers are not using AI tools at work or in their personal lives.

Overall, the report found that more than half of employees (53%) believe new technology will affect their job security, signaling persistent anxiety as AI adoption accelerates.

Workplace concerns vary across industries.

Those earning less than $60,000 and hourly workers report heightened financial and mental health challenges.

Women and experienced professionals cite concerns around schedule predictability and fairness in pay and progression, particularly in healthcare and retail.

Employees in high-tech and financial services, particularly on-site workers, managers, and those with 5-10 years of tenure, report some of the strongest engagement gains.

Flexible work and time-off practices keep employees engaged.

Nearly eight in ten workers (78%) can fully use their paid vacation time, and 74% can take time off when they choose.

And 70% say paid time off adequately supports mental health and family care needs.

Employers that pair flexibility with clear expectations can strengthen their workforce’s trust and resilience, the report noted.

“Today’s workforce is offering employers a window of opportunity to transform short-term commitment into lasting loyalty,” said Stephanie Penner, Mercer’s US & Canada Career practice leader. “That commitment deepens when clarity, fairness, and follow-through are embedded into how the organization operates.”

Engagement remains high among workers, with 73% indicating they are not seriously considering leaving their organization, up from 68% in 2023.

Nearly three-quarters are confident they can achieve their career goals at their current employer, especially in high-tech and financial services.

Though anxiety about job security has increased, the report found that workers express greater confidence in their employers than in the broader economy, underscoring the importance of credible leadership and consistent communication.

While workers are clearly engaged, their recommitment to their employers is conditional, the report emphasized.

“Employees are closely watching whether internal job postings lead to real movement, whether development is feasible alongside day-to-day work, and whether leaders follow through on communicated plans.”