As Generation Z (born between 1997 and 2012) continues to integrate into the workforce, challenges inside the world of work are making advancement difficult. In 2025, five major trends are redefining opportunities for Gen Z professionals. Consider how major companies and smaller players are moving to eliminate middle management roles. It’s part of the unbossing trend that has resulted in a significant reduction in the white-collar workforce. As a result of middle management cuts (over a third of layoffs in 2023), there’s a massive market shift towards self-leadership, autonomy and individual contribution for Gen Z. In research cited by The Times of London, 75% of 18-27-year-olds are searching for more secure, longer-term work than was common in previous generations. Younger professionals are wanting to stay at the same company for twice as long. The balance of generational aspirations and workplace conditions is creating a catch 22 for Gen Z. A catch 22, from the 1961 novel by Joseph Heller, means a situation where conflicting conditions exist. Finding stability in uncertainty is an example. Gaining management experience when management roles are disappearing is another. For Gen Z, here are five additional factors creating a catch 22 in 2025.
1. An Increase in Anxiety – and Emphasis on “Change Readiness” for Gen Z
Gen Z has been dubbed “the anxious generation” by author and social psychologist, Jonathan Haidt. Anxiety comes from heightened awareness. How are companies and employees adapting to this misuse of imagination (another way to look at anxiety)? “Looking ahead to 2025, we predict a significant rise in anxiety as a result of the accelerating pace of business transformation,”Jan Bruce tells the Mass Technology Leadership Council. She’s the CEO and Founder of meQuilibrium, an organization that focuses on building resilience at scale. “Without the right support and skills, this anxiety will erode productivity, dampen employee morale, and weaken overall organizational performance.” Adaptability is key, Bruce says. “The future of work will belong to those who are not just change-tolerant, but change-ready.” For Gen Z, consider how you are already “change ready”. What stories can you share that show how you have dealt with change in the past? Indeed, the flexibility and adaptability of the digital generation is unmatched. As a coach, when confronted with performance-crippling anxiety, I help my clients to remember what we always forget: emphasizing capability in the midst of difficulty. Remember, inside every challenge – even a challenge of anxiety – lies opportunity. An opportunity to see things in a new way. To find resourcefulness in the midst of heightened emotions – a great way to look at change.
2. Focusing on In-Person Collaboration for Gen Z
Chris Stine is a software engineer who works from home in his parent’s basement. While many employees are resistant and frustrated by return-to-office initiatives, Stine says that he’s taking initiative, on his own, to reconnect with folks at the office. “I can’t turn my shoulder and then ask somebody a question real quickly,” he shares, surrounded by posters and artwork (but no co-workers) in his home office. “I have to formulate a Slack response and a message,” he says. But something’s been missing for Stine, and it’s not a lease on his own apartment. He’s made the decision to return to the office, on his own – making the commute from the Virginia suburbs into Washington, DC. He tells NPR about his voluntary 90-minute commute. “I’ll talk to people on the way to work. Conversations will happen. And just being around people, not being in my house alone – kind of like this – it really feels better at the end of the day,” he says. Is there an internal and organic push to return-to-office, for workers who don’t have obligations that are served by working from home?
3. Connection for the Self-Directed Workforce: Unbossing in Action
In today’s economic climate, the stability of a supportive workplace can make a huge difference, offering a sense of purpose and belonging. In a report published by the University of California at Berkeley, a sense of belonging is cited as a vital response to workplace challenges – and maybe even some of the anxiety facing Gen Z. After all, knowing that you don’t have to face your problems alone always makes things easier. “Healthy work relationships facilitate greater learning and knowledge sharing, improve retention and engagement, and increase innovation and performance,” according to the report. The challenge for Gen Z in 2025: Modern-day “connectivity” is less concerned with making genuine connections and more about being seen as part of a tribe—more often than not, one whose members know very little about one another on a personal level. For example, working as a software engineer puts you into a tribe at an organization – but does it create connection, in an era when self-direction is crucial? It’s an interesting paradox, but becoming more self-reliant is easier when the journey is shared with people you know on a personal level. Indeed, Gallup says in a 2024 survey that having friends at work is the key to employee engagement and job success – especially in the era of unbossing and self-leadership.
4. Integration of Technology and Digital Proficiency for Gen Z
As digital natives, Gen Z is better positioned than other generations to embrace AI technology. Perhaps due to their tech literacy, they are also the generation that’s most worried about the impact of AI, according to HRD Connect. Employers must ensure that their technological infrastructure meets these expectations to attract and retain Gen Z talent. It makes sense: if you want tech-savvy employees, create a tech-savvy infrastructure where those skills can flourish. However, that infrastructure must also include a culture that supports human-to-technology integration, with clear and supportive policies around AI. For many forward-thinking leaders, coaching can be useful for integrating technical and social skills – so that Gen Z can deliver the future of work.
5. Well-Being and Work-Life Balance for Gen Z
Gen Z’s emotional lives are complicated, according to a Gallup and Walton Family Foundation report. According to research, Gen Z has the poorest mental health of any generation. Deloitte says that roughly half of Gen Zs (52%) and millennials (49%) feel burned out, up from 46 and 45 percent respectively in 2022. Using the World Health Organization’s criteria for burnout, the survey asked respondents about specific feelings they experience while working. It found that over a third of Gen Z workers feel exhausted all or most of the time, 35% feel mentally distanced from their work, and 42% often struggle to perform to the best of their ability. The numbers are nearly as high among millennials.
Creating a future of work that works for Gen Z means a focus on well-being and connection, in the era of self-leadership, unbossing and AI. In fact, the challenges of burnout and well-being are most acute for Gen Z – as the quest for stability seems to be a catch 22. But for companies seeking to advance adoption of generative AI, Gen Z might be the missing link. That adoption happens through people. As technology advances around platforms like ChatGPT and its competitors, it’s never been more important to remember the operating system that matters most: the human operating system. A mindset of high performance is difficult to entertain when your state of mind is one of anxiety and uncertainty. While management roles may be disappearing for Gen Z, the need for connection and mentorship has never been more acute.