Generation Z's Career Dreams Shattered by Skyrocketing Costs, Mental Health Crisis, and a Gender Divide!
The newest generation to enter the workforce, Generation Z, is facing an unprecedented array of challenges that threaten their financial stability, career ambitions, and mental well-being. According to the Prince’s Trust NatWest Youth Index 2024, rising costs of living are placing significant financial pressures on young people, causing some to turn down job offers due to the expense of starting a new job. Beyond financial concerns, distinct disparities are also emerging between young men and women in education and employment, as gender ratios shift in college admissions and completion rates, impacting future career prospects.
The report highlights how financial stress, mental health struggles, and shifting educational patterns are shaping Gen Z's journey to adulthood. The economic landscape has created challenges, especially for young men, who face growing obstacles in education and career attainment. Here’s a deep dive into how these factors are affecting Generation Z’s entry into the workforce, and how employers, educators, and policymakers can work together to address these barriers.
Financial Pressures: A Barrier to Starting Work
The survey conducted by the Prince’s Trust included over 2,000 young people aged 16 to 25 in the United Kingdom and revealed some startling findings. While historically, new job opportunities have been cause for celebration, Gen Z is increasingly wary of the financial demands associated with starting work. Expenses for uniforms, work attire, and commuting have become prohibitive, with one in ten survey respondents declining job offers due to the financial burdens involved.
This trend is reflective of a deeper problem: Generation Z is navigating a financial landscape marked by rising costs and dwindling purchasing power. The confidence gap around finances has reached its widest point since the inception of the Youth Index 15 years ago. More than half of respondents expressed doubt about ever achieving financial stability, and one-third noted that money issues were a regular source of stress. The ripple effects of these financial insecurities touch all aspects of their lives, from career planning to mental health and personal relationships.
The pressures are particularly pronounced among young women, 60% of whom worry that the cost of living will prevent them from achieving financial independence. Men, meanwhile, are more likely to express concerns about making enough to support a family, with 45% of young men echoing this sentiment. This financial anxiety underscores a broader sense of insecurity among Generation Z, as they try to navigate an unpredictable economy and a volatile job market. As a result, many are turning to online resources, especially social media platforms like TikTok, for financial guidance. Advice on topics like budgeting and saving have become immensely popular among young people, though social media alone cannot address the systemic issues affecting their financial stability.
Educational Disparities and the Gender Divide
Economic challenges are not the only hurdles Generation Z faces; educational trends reveal a complex web of gender disparities impacting young men and women differently. In the U.S., a shift in college demographics has resulted in more women than men attending universities. For instance, at Stanford University, undergraduate women now outnumber men by 7%, a reversal from 50 years ago when men represented 67% of the student body.
While increased female enrollment is a positive indicator of the success of gender parity initiatives, the pendulum has swung far beyond equilibrium. Young men are statistically less likely to attend college, less likely to graduate, and more likely to disengage from academics. In fields like health and education, as well as many STEM disciplines, women are now leading, while men are seeing higher dropout rates and fewer opportunities for academic engagement. This shift has raised concerns about the future of men in professional fields traditionally dominated by college graduates.
In the U.K., educational disparities among young men from disadvantaged backgrounds are similarly stark. Research has shown that men from low-income households are less likely to pursue higher education and are more susceptible to dropping out if they do enroll. Limited access to resources, mentorship, and support programs are contributing factors, as is a lack of male role models in higher education.
These trends suggest a widening gap in educational and professional opportunities between men and women, with significant implications for future career trajectories. Men who forgo higher education often enter the workforce with fewer skills and face a steeper climb toward financial security. Conversely, women, though better represented in higher education, continue to face barriers in fields where pay equity and professional advancement remain elusive.
Mental Health: The Silent Barrier
Financial and educational disparities are compounding another issue that has become increasingly apparent in recent years: mental health struggles. The Prince’s Trust research highlights that poor mental health is now the second largest barrier preventing young people from achieving their goals. Among respondents, 40% reported experiencing mental health challenges, with one-third fearing that these issues could impede their career progress.
For many young people, mental health concerns are not merely abstract anxieties; they are tangible barriers that prevent them from engaging fully in education and employment. In the past year, one in five Gen Z respondents has missed school or work due to mental health issues, while 18% felt too overwhelmed to apply for jobs, and 12% were unable to attend interviews. Mental health struggles are also leading to job instability; 10% of young people from disadvantaged backgrounds left jobs in the past year due to mental health challenges.
These mental health barriers are exacerbated for young men, who may face stigma around seeking support and are often less likely to reach out for mental health services. For women, the anxiety surrounding financial stability and future career prospects is a major source of stress, affecting their sense of security and overall well-being. Both young men and women report that mental health challenges hinder their ability to achieve their goals, further perpetuating a cycle of economic and social insecurity.
The Role of Employers and Educators
While the findings of the Prince’s Trust Youth Index paint a daunting picture, there is hope in the form of targeted support that can help Gen Z overcome these obstacles. Employers and educators have a critical role in providing resources, guidance, and supportive environments that empower young people to succeed. Here are a few ways they can help:
- Financial Support and Literacy: Employers can help alleviate the financial burden of starting a job by offering resources such as transport stipends, uniform allowances, or salary advances. Additionally, providing financial literacy workshops can equip young people with essential skills for managing their finances.
- Mental Health Resources: Workplaces and educational institutions must prioritize mental health by offering access to counseling services, mental health days, and resources to reduce the stigma surrounding mental health struggles. By fostering supportive environments, employers and educators can help young people feel more comfortable seeking the help they need.
- Career Mentorship and Guidance: Young people are seeking mentorship as they navigate their early careers. Employers can provide structured mentorship programs, while schools can help students connect with professionals in fields of interest. Mentorship is especially valuable for young men who may feel isolated in educational settings where female students outnumber them.
- Encouraging Gender Equity: For educational institutions, addressing the gender imbalance requires a focus on equitable access and support for all students, especially those from underrepresented backgrounds. Programs targeting young men from disadvantaged areas could help increase engagement and retention in higher education, ensuring that both men and women have equal opportunities for success.
- Career Skills Development: Young people expressed a need for help in securing work experience, writing résumés, and preparing for interviews. Employers can contribute by offering internships and entry-level positions that focus on skill-building and by providing clear pathways for career advancement.
Related: 6 ways to take care of your mental health at work
Looking to the Future
Generation Z is stepping into a workforce and world that is vastly different from that of previous generations. The economic challenges, gender disparities, and mental health concerns they face are distinct, and their impacts will likely continue to shape the workforce in the coming years. Despite these challenges, Gen Z remains determined to succeed, with many young people expressing hope for a brighter future if given the right resources and support.
As Jonathan Townsend, the U.K. chief executive of the Prince’s Trust, noted, “The overwhelming majority of young people tell us they remain determined to achieve their goals. What they require, however, is practical support and guidance to overcome the challenges they face, particularly as the world of work continues to rapidly change.” Addressing these issues will require a collaborative approach from educators, employers, and policymakers, all working toward a common goal: to create an environment where young people, regardless of gender or background, can thrive.
By taking action to address financial disparities, support mental health, and create equal opportunities in education, society can empower Generation Z to reach their full potential. The hope is that with sustained support and strategic intervention, Gen Z can overcome the hurdles they face today and build a future where financial stability, educational opportunity, and mental well-being are accessible to all.
