Not exactly working for Gen Z: Report warns of financial stress triggering ‘midlife crisis’

A new MetLife study reveals a worrying trend: Generation Z faces a significant decline in holistic well-being, struggling more than any other generation. Only one in three Gen Z workers feel truly healthy, physically, mentally and financially. This marks a 10% drop compared to the average worker and a 6% drop from last year, widening the gap between them and the healthiest generation – the Baby Boomers. The report, “Doesn’t exactly work for Gen Z,” examined the holistic health of different generations in the workforce and paints a worrying picture of a generation overwhelmed by increasing pressures.

The study points to financial stress as a major contributor to Gen Z’s struggles. Rising costs of living, limited entry-level salaries and the pressure to save for major living expenses such as housing and education take their toll. This financial strain manifests itself in high levels of stress, burnout, depression and isolation. Reportedly, 38% of Gen Z workers feel they are experiencing a “midlife crisis” due to financial challenges, and some are even turning down jobs they can’t afford.

In addition to the financial issues the report highlights, Gen Z workers report feeling less engaged, successful and happy in their roles compared to previous years. Anxiety and overwhelm are pervasive and affect productivity and job satisfaction. This discord is a serious concern for employers as it can have a negative impact on workplace morale and overall performance.

To address these challenges, employers must go beyond traditional benefits. Offering targeted support such as help with student loan repayment, child care subsidies and improved mental health resources is essential. But simply offering benefits is not enough. Clear communication and ensuring that employees understand and use these resources is critical to maximizing their impact.

The MetLife study serves as a critical reminder that ignoring the unique needs of Gen Z will have harmful consequences. By prioritizing their holistic well-being, employers can create a more supportive and inclusive workplace that fosters a thriving and engaged workforce for the future.

Disclaimer: The views expressed in this article are those of the author(s) and do not necessarily reflect the views of ET Edge Insights, its management or its members