Abstract: In the third quarter of 2026, the share of U.S. employees who were engaged at work fell to 29%, the first reading below 30% since 2011 and roughly 11 million fewer engaged workers than at the 2020 peak. The decline is concentrated in two foundational experiences, knowing what is expected at work and feeling that someone at work cares, and it has been steepest among fully remote and hybrid employees, even in organizations that are adopting artificial intelligence. This article examines what engagement is, why it is eroding now, and what the erosion costs organizations and individuals. Drawing on Gallup's panel data, meta-analytic research on engagement and job resources, and documented organizational practice in technology, professional services, healthcare, retail, and travel, it sets out five evidence-based responses: restoring clarity, rebuilding the manager as the engagement multiplier, making care visible through frequent conversation, designing flexibility with connection, and introducing AI in ways that strengthen rather than unsettle the basics. It closes with three long-term capabilities for sustaining engagement.
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