Employee engagement in the US has dropped below 30 per cent for the first time in 15 years, with remote and hybrid workers recording some of the steepest declines, particularly in organisations that have adopted artificial intelligence (AI).
According to Gallup’s latest survey, engagement fell to 29 per cent in the third quarter of 2026, down two percentage points from the previous quarter and the lowest level since 2011. Meanwhile, the proportion of actively disengaged employees increased from 17 per cent to 18 per cent, while the remaining 53 per cent were classified as not engaged.
The latest figures point to a prolonged decline in employee engagement. After reaching a peak of 36 per cent in 2020, engagement dropped to 31 per cent in 2024 and remained at that level through the first half of 2026. The latest two-point fall represents approximately 3.2 million fewer engaged employees in the US, based on Gallup’s estimate that each percentage point corresponds to around 1.6 million workers.
A key concern emerging from the findings is the deterioration in employees’ day-to-day workplace experience. Fewer workers reported having a clear understanding of what is expected of them, while the proportion who felt that someone at work genuinely cared about them also declined.
In the third quarter, only 46 per cent of employees strongly agreed that they knew what was expected of them at work, down from 49 per cent in the first half of the year. Similarly, the share who strongly agreed that their supervisor or someone at work cared about them as a person fell from 40 per cent to 37 per cent. Both measures have recorded significant declines in recent years.
The drop was particularly pronounced among employees working remotely or in hybrid arrangements. Engagement among fully- remote employees declined by five percentage points between the second and third quarters, while hybrid workers recorded a two-point fall. The decline was smaller among on-site employees and those whose jobs cannot be performed remotely.
Gallup’s findings also suggest that the engagement advantage previously associated with AI adoption is narrowing among remote and hybrid employees. Its earlier analysis had found higher engagement in organisations that had adopted AI, particularly where employees were given a clear implementation plan and managers actively supported its use.
However, by the third quarter, the difference had reduced considerably. Among fully remote employees in organisations that had integrated AI, the engagement advantage over their counterparts in other organisations narrowed from five percentage points in the second quarter to two. For hybrid employees, it fell from eight percentage points to two. Among on-site workers, the advantage remained at around four to five percentage points.
The findings suggest that introducing AI alone may not be enough to sustain engagement. As roles and workflows evolve, employees also need clarity about their responsibilities, consistent managerial support and a sense of connection with their organisations.
