As Canada’s labour market evolves, a growing number of mid-career employees are facing unprecedented strain. Often dubbed the “sandwich generation,” these workers are finding themselves caught between raising children and supporting ageing parents. And the toll is mounting.

According to a recent report by Dialogue, a virtual healthcare provider, Canada’s mental health scores have remained stubbornly low for six consecutive months, with the World Health Organization’s (WHO) Well-Being Index registering an average score of 45.1 out of 100. Anything below 50 signals a potential risk for depression, according to the WHO.

“The biggest drop in mental well-being is in the 40-year-old group, which has decreased by eight per cent since the last report just six months ago,” said Dr. Marc Robin, medical director at Dialogue, in an interview with Canadian HR Reporter.

More caregivers, more burnout

Robin said the challenges facing these employees are unique. In addition to managing demanding roles at work, they are also handling responsibilities at home. “They have increasing responsibilities, but they are also having to deal with kids in school and ageing parents at the same time,” he said. “So this is kind of the perfect storm in a lot of ways between external factors and work-related factors.”

The result? Burnout, absenteeism and declining productivity. Dialogue’s findings reveal that 15 per cent of sandwich generation workers are reducing their hours, 10 per cent are turning down new opportunities, and 26 per cent are taking leaves of absence.

More than one-third of these employees reported increased rates of burnout. Robin noted that for every one-point drop on the well-being index, employers lose approximately one hour of productivity per employee.

“Mid-career employees are a vital part of organizations, combining experience, corporate knowledge and productivity while leading teams, as well as balancing caregiving at home,” said Robin. “This convergence increases risk: caregiver-employees report increased burnout and are almost twice as likely to have mental-health-related absences, underscoring the need for employer support.”

This growing cohort is also reporting career stagnation. According to a previous study cited in the same report, caregiving responsibilities are holding back career progression and forcing employees to make trade-offs that limit their upward mobility.

Flexible solutions gain traction among SMBs

While the mental health crisis within the sandwich generation presents a complex challenge, some employers are rethinking how they support this critical workforce segment.

Robin suggests that there is no single solution, but accessible and portable mental health care is a key part of the response. “You need a solution to support mental health and wellness for employees that is easily accessible and portable,” he said. For this group, virtual services are often the only practical option.

“Virtual mental health services are key for that generation, but also for the super busy generations between kids and their parents and work, where they don’t have time to make an appointment in a clinic in three weeks. They want help now, and they want it served to them digitally.”

SMBs, already under pressure to retain skilled talent amid a tight labour market, may find that offering mental health benefits and flexible work arrangements can be both a strategic necessity and a differentiator.

Employee absence management is also gaining renewed focus. Some businesses are reviewing their policies to better accommodate caregivers who may require short-term leave or reduced hours without career penalties.

Robin cautioned that while short-term accommodations help, long-term change requires normalizing support for caregiver-employees across the organization. He emphasized that mental health and caregiving responsibilities should be factored into any company’s workforce planning. Not add-ons. 

The broader implications for productivity, retention and employee wellbeing are significant. As mid-career Canadians continue to manage dual caregiving loads, organizations that fail to respond may see higher rates of turnover and lower morale across the board.

A new workforce reality

Dialogue’s findings come at a time when disability claims are also rising, putting additional pressure on both employers and insurers to adapt. For SMBs in particular, where every team member plays a pivotal role, sustained absenteeism can quickly impact operations.

Industry experts say there is an opportunity for SMBs to lead the way. With flatter hierarchies and more agile structures, smaller employers are often better positioned to trial innovative policies, whether through remote options, mental health days or digital support tools.

While federal and provincial policymakers continue to debate the best public health approaches, many employers are moving ahead with their own strategies. For some, that means expanding employee assistance programs (EAPs). For others, it means reshaping the culture around time off, flexibility and performance measurement.

What’s clear is that Canada’s sandwich generation is signalling a shift in workplace expectations. Employers that tune into those signals now will be better equipped to build resilient, engaged and productive teams in the years to come.