Gen Z and Mental Health: A Generation in Crisis and the Role of Workplaces

Generation Z, comprising over 2 billion individuals born between 1995 and 2012, represents about 30% of the global population. In 2025, this demographic makes up approximately one third of the global workforce, stepping in to replace retiring Baby Boomers. While their influence is growing, so are their challenges, particularly when it comes to mental health and well-being.

Understanding the Gen Z Mental Health Crisis

Mental health challenges among Gen Z have reached concerning levels, with financial and employment instability playing a significant role. Compared to older generations like Baby Boomers, Gen X, and Millennials, Gen Z faces disproportionately higher unemployment rates in almost all OECD countries; nearly double that of their predecessors. In a 2024 report, the Resolution Foundation explored the link between unemployment and mental well-being, finding that people in their early 20s with mental health conditions are more likely to be out of work or in low-paid jobs than those in their early 40s. Data from 2021-22 further underscores this connection, showing that 34% of individuals aged 18 to 24 reported symptoms of mental disorders, including anxiety, depression, and bipolar disorder. 

Gen Z’s mental health challenges are largely shaped by their formative experiences as the first fully digital generation. Growing up with constant access to technology, they have benefited from increased global interaction and adaptability but have also been exposed to cyberbullying, unhealthy comparisons, and other negative effects of social media. A study by King’s College London and the Orygen Institute found that two-thirds of people in the UK attribute the rise in youth mental health problems to social media use. While Baby Boomers and Gen X tend to associate these issues with drug and alcohol use, Millennials and Gen Z cite financial pressures and social media as primary factors.

Within this same digital landscape, Gen Z faces a heightened awareness of global crises, including climate change, wars, and economic inequality, which amplifies feelings of uncertainty. These concerns, combined with self-comparison, social expectations, and the lasting effects of austerity and rising living costs, create a complex web of pressures affecting their mental well-being. Understanding these intersecting challenges is essential to developing meaningful support systems that address the unique struggles of this generation.

Gen Z and Work: Unique Challenges and Expectations

As Gen Z enters the workforce, many are finding that traditional work environments are not equipped to support their well-being. The 2024 Voice of the Workplace Report by Calm revealed that 90% of Gen Zers report feelings of stress and anxiety, and 74% feel down or depressed. The report also highlighted that Gen Z employees often face a lack of built-in social support systems, a stark contrast to previous generations who benefited from more communal workplace structures. This gap in support is contributing to a range of mental health issues. Notably, 35% of Gen Zers report frequent anxiety due to the rapid pace of technological change in the workplace, and higher levels of career uncertainty compared to other age groups, adding to their stress levels.

Despite these difficulties, Gen Z is actively reshaping the workplace to better suit their needs. Over 75% of Gen Z employees advocate for improved workplace benefits and a stronger focus on mental health support. They are also 60% more likely than other generations to push for diversity and inclusion initiatives, reflecting their desire for workplaces that prioritise equity and representation, challenging employers to rethink how they address the well-being of their employees.

Looking Forward

The challenges faced by Gen Z signal a fundamental shift in workplace dynamics — one that requires a proactive, nuanced approach from employers. As this generation navigates financial instability, mental health concerns, and shifting career expectations, businesses must recognise that supporting employee well-being is not just a ticking exercise but a strategic necessity. Organisations that fail to adapt risk higher turnover, disengagement, and long-term uncertainty.

While financial support, mental health resources, and inclusive policies are crucial, real change comes also from actively listening to employees and fostering a workplace where they feel valued. Striking a balance between meeting Gen Z’s expectations and maintaining financial sustainability will be key, but organisations that prioritise well-being today will build a more resilient, engaged workforce for the future.

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This blog post is an adapted version of an original article by Yasmin Bou Karim, founder of Bossa Health, originally published on LinkedIn. You can view the original article here.