Projected to comprise nearly 30% of the labor force in 2025, Gen Z is filling the void left by retiring Baby Boomers. This demographic shake-up brings fresh perspectives and challenges to workplaces across industries.
Despite their growing presence, Gen Z faces a unique set of obstacles as they navigate their careers. Economic instability, characterized by high inflation and rising costs, has created financial insecurity for many young professionals. Global conflicts and political polarization have contributed to a sense of uncertainty and division, even within families. The recent drone sightings and terror attacks in the United States have only added to the atmosphere of unease.
Additionally, the Covid-19 pandemic has had a profound impact on Gen Z’s social development and mental health. Extended periods of isolation during lockdowns have led to diminished social lives and difficulties in forming meaningful connections. The predominance of digital communications has exacerbated feelings of loneliness and disconnection, with many Gen Zer struggling to rebuild their social skills in the post-pandemic world.
The promise of the American Dream, once touted as the reward for academic success and higher education, has turned sour for many Gen Z. Parents encouraged their children to excel in school and pursue college degrees, assuring them of a bright future. However, this path has led many young adults into a financial quagmire.
Burdened with staggering student loan debts, often reaching into six figures, Gen Z graduates find themselves struggling in a job market that’s less welcoming than anticipated. The challenge of repaying these loans has become a significant source of stress and financial instability for many.
In hindsight, some Gen Zers are questioning their parents’ advice, feeling that the push toward expensive university education may have been misguided. They’re now considering alternative career paths, such as skilled trades, which were often overlooked in favor of traditional college routes.
The cumulative effect of these challenges has led to unprecedented levels of stress and anxiety among Gen Z, as they are experiencing delayed life milestones and a growing disenchantment with conventional pathways to success.
Recognizing the gravity of these issues, employers are adapting their approach to support Gen Z workers’ mental health with an increasing emphasis on comprehensive benefits and wellness programs. Early findings from MetLife’s 2025 Employee Benefits Trends Study found that Gen Z employees who fully comprehend their benefits are 3.2 times more likely to be holistically healthy.
The Health Of Gen Zs
Gen Z employees are facing a significant decline in their holistic health, according to MetLife. Only 31% of Gen Z workers report feeling holistically healthy, a 6% decrease from 2024 and substantially lower than other generations.
This alarming trend has widened the holistic health gap between Gen Z and Baby Boomers to a staggering 26%, highlighting an unprecedented generational health disparity.
The research reveals that Gen Z is grappling with elevated levels of mental health challenges compared to the average employee. A striking 46% of Gen Z workers report feeling stressed, while 35% experience depression, significantly higher than the 20% average. Furthermore, 44% of Gen Z employees feel burned out, surpassing the overall rate of 34%, and 30% report feelings of isolation.
When compared to workers aged 21 to 25 in 2018, today’s Gen Z employees report lower levels of success, happiness and engagement in their professional lives.
Additionally, Gen Z’s financial health lags behind the average by 8%, with their primary worries revolving around saving for major life events, dealing with high interest rates, and affording housing in the current market. This financial strain contributes to their overall well-being challenges.
The data also points to a strong link between understanding and using benefits and improved health outcomes. However, there has been a decline in benefits understanding across the workforce, dropping by 10% for Gen Z since 2021.
“MetLife’s data finds employee health and workplace outcomes are highly correlated,” said Missy Plohr-Memming, senior vice president of national accounts at MetLife, in a video call. “The declining health of Gen Z employees should be an early warning sign for employers who need the passion, innovation and tech-savvy of this generation. Employers need to come together and find ways to support Gen Z employees’ mental, social, and financial health and, given the positive connection between benefits and improved holistic health, this includes helping Gen Z employees understand and use their benefits effectively to get the support they need.”