Mental Health Issues Disqualify Almost Half Job Candidates

Employers need to lift their game on mental health.
Mar 18, 2026
Staff
Past mental health issues can mean job prospects are cooked.

The close to half of Australians who do experience mental health issues are excluded from work to a degree given a third of hiring managers would not consider employing people with a history of mental illness.

The Australian Bureau of Statistics data from 2024 shows 42.9% of Australians aged 16-85 had experienced a mental health disorder in their lifetime.

Meanwhile the Australian HR Institute surveyed hundreds of businesses, and found seven out of 10 were excluding candidates from certain groups, including those with a history of mental illness.

The survey found 32% of employers would not consider hiring someone with a history of mental illness in 2026, up from 25% in 2025.

“Almost 1 in 2 Australians will experience a mental health challenge in their lifetime, to say nothing of the untold millions who never get diagnosed because of stigma, shame or lack of access to services. It is nonsense for employers to cut off access to that talent pool,” Australians for Mental Health Executive Director Chris Gambian said.

“We really need employers to start creating workplace cultures and environments that support good mental health for everyone and welcome people whose needs might occasionally need to be accommodated.

“It’s hard to have confidence that Australian businesses take mental health seriously, and are committed to reducing the stigma and supporting their staff if so many are openly admitting they restrict employment opportunities because of someone’s history with mental illness. Morning teas and earnest Linkedin posts and no substitute for action,” Gambian said. 

“Australians will spend a third of their lives at work, and it is often the place where mental health issues can start or get exacerbated. As workplace psychological injury claims go through the roof, we need governments to help overhaul workplace protections against mental harm.  A good start would be mandatory mental health training for all managers."

Image by Amel Uzonovic