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How does Gen Z see its place in the working world? With trepidation | McKinsey
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data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="AnchoredHero" class="ArticleDefault_mck-c-article-default__SfYQE"><style></style><div data-component="mdc-c-background-image" class="mdc-c-bg-image___GJdv1_2734c4f background-image-article-default ArticleDefault_mck-c-article-default__parallax-container__fZ7Iq"></div><div class="ArticleDefault_mck-c-article-default__gradient__Uu21n"></div><div class="ArticleDefault_mck-c-article-default__wrapper-content__XOe9C"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-lg-12"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-col-lg-start-1 mdc-u-grid-col-lg-span-10"><div><h1 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-2 mck-u-animation-slide-down ArticleDefault_mck-c-article-default__heading__bv6rL"><div>How does Gen Z see its place in the working world? With trepidation</div></h1></div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-10 mck-u-animation-blur-in-800 ArticleDefault_mck-c-article-default__description__sjoe9"><div><time datetime="2022-10-19T00:00:00Z">October 19, 2022</time> | Article</div></div></div></div></div></div></div><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-gutter-xxl"><section data-layer-region="article-body-header" class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400 byline-share-container"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-7 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-8 mdc-u-ts-10"></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-animation-blur-in-400"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-5"><div class="mck-u-links-inline">Americans 18 to 24 years old report high rates of mental-health challenges, impediments to effective work, and worries about the future, our latest American Opportunity Survey shows.</div></div></div></section><main data-layer-region="article-body" class="mdc-u-grid mdc-u-grid-gutter-xxl"><div class="mdc-u-grid mdc-u-grid-col-1 mdc-u-grid-col-md-12"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><div class="mdc-o-content-body mck-u-dropcap"> <div class="mck-o-sidebar mck-o-xs-right-span"><div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="DownloadsSidebar_mck-c-downloads-sidebar__iFmyt mck-o-xs-right-span"><div data-layer-region="downloads-right-rail"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f"></h3><div><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f"><a data-component="mdc-c-link" href="#/download/%2F~%2Fmedia%2Fmckinsey%2Ffeatured%20insights%2Ffuture%20of%20america%2Fhow%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation%2Fhow-does-gen-z-see-its-place-in-the-working-world-with-trepidation.pdf%3FshouldIndex%3Dfalse" class="DownloadsSidebar_mck-c-downloads-sidebar__download-link__fPqFQ mdc-c-link___lBbY1_2734c4f" target="_self" data-layer-event-prefix="Download Link" data-layer-action="click" data-layer-report-type="" data-layer-file-name="how-does-gen-z-see-its-place-in-the-working-world-with-trepidation" data-layer-report-name="how-does-gen-z-see-its-place-in-the-working-world-with-trepidation>"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--size-md___yi5fA_2734c4f mck-download-icon"></span><span class="mdc-c-link__label___Pfqtd_2734c4f"> (11 pages)</span></a></div></div></div></div></div> <p><strong>Youth can be an exhilarating time but also one of high anxiety,</strong> as young people struggle to establish themselves economically and find their place in society. While each generation may encounter struggles and doubts as they join the workforce, Generation Z<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="88f06d6e-c84e-455a-88f9-923a24e594af"><sup class="FootNote_footnotesup__e73z_">1</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="88f06d6e-c84e-455a-88f9-923a24e594af" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">For this analysis, Gen Z is defined as those aged 18 to 24 in 2022. </span></span></span></a></span> has entered the working world during a global pandemic and amid concerns over rising inflation rates, recession fears, geopolitical conflicts, and climate change. The latest iteration of McKinsey’s <a href="/featured-insights/sustainable-inclusive-growth/future-of-america/american-opportunity-survey">American Opportunity Survey (AOS)</a> reveals a generational gap in the workplace, with marked differences among how Gen Z and other generations view themselves, their ability to work effectively, and their futures.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="" data-module-gradient-position="bottom-right" class="mck-c-inline-module-container SideBar_mck-c-sidebar__bgimg-wrapper__Qj4Dt mck-o-sm-left-span SideBar_mck-c-sidebar__sidebar-wrapper__Dpjw2 SideBar_mck-c-sidebar__sidebar-wrapper--istablet__IQ6ii mck-u-screen-only mck-c-module-wrapper" data-layer-region="sidebar"><div class="SideBar_mck-c-sidebar__epoAm mck-o-md-center"><div class="SideBar_mck-c-sidebar__share-icons-wrapper__9gB_c"><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--display-column___X0HDD_2734c4f SideBar_mck-c-sidebar__share-icons___eQy6"><div data-component="mdc-c-dropdown-menu" class="mdc-c-drop-down"><button data-component="mdc-c-button" aria-label="" type="button" id="button_id" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--ghost mdc-c-button--size-medium mdc-c-drop-down__rootmenu___yJzvz_2734c4f" aria-expanded="false" aria-haspopup="menu"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--default___f-hQM_2734c4f mdc-c-icon--size-md___yi5fA_2734c4f mck-share2-icon"></span></button><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="" class=""></div></div><button data-component="mdc-c-button" aria-label="Expandable Sidebar" type="button" id="button_id" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--ghost mdc-c-button--size-medium SideBar_mck-c-sidebar__toggle-btn__EL8iE" aria-expanded="false" data-layer-event-prefix="UI Item" data-layer-action="click" data-layer-category="sidebar" data-layer-subcategory="open" data-layer-text="open sidebar"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--radial___y3csX_2734c4f mdc-c-icon--size-xxl___cL3ZT_2734c4f mck-plus-no-circle-icon"></span></button></div></div><div class="SideBar_mck-c-sidebar__content-outer__UdWCq"><div class="SideBar_mck-c-sidebar__eyebrow__5GSEq"></div><div class="SideBar_mck-c-sidebar__content__raEwe"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-3 SideBar_mck-c-sidebar__content-heading__NJekY"><div>About the authors</div></h2><div class="SideBar_mck-c-sidebar__content-description__4p9iI mdc-u-ts-7"><div class="mdc-o-content-body"><p>This article is a collaborative effort by <a href="/our-people/andre-dua">André Dua</a>, <a href="/our-people/kweilin-ellingrud">Kweilin Ellingrud</a>, Michael Lazar, Ryan Luby, and Sarah Pemberton as part of ongoing McKinsey research to understand the perceptions of and barriers to economic opportunity in America.</p></div></div></div></div></div></div> <p>Our spring survey of 25,062 Americans included 1,763 respondents (see sidebar, “Our methodology”) in the Gen Z age range of 18 to 24. Our survey shows that <a href="/featured-insights/mckinsey-explainers/what-is-gen-z">Gen Z respondents</a> who are working are more likely to have independent jobs or multiple jobs than older workers. Unlike other generations, they are less likely to expect this period of financial insecurity to end and have high levels of doubts about their eventual ability to either buy homes or retire.</p> <p>Employed Gen Z respondents are more likely to report that the pay they receive for their work does not allow them a good quality of life (26 percent, compared with 20 percent of other respondents) and are less likely than others to report feeling fairly recognized and rewarded for their work (56 percent, compared with 58 percent of other respondents). A remarkable 77 percent of Gen Z respondents report looking for a new job (almost double the rate of other respondents). While some degree of job churn in early careers is expected, the economic pessimism reported by Gen Z—only 37 percent believe that most people in this country have economic opportunities—suggests a deep malaise about their own prospects and those of other Americans.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="" data-module-gradient-position="bottom-right" class="mck-c-inline-module-container SideBar_mck-c-sidebar__bgimg-wrapper__Qj4Dt mck-o-sm-left-span SideBar_mck-c-sidebar__sidebar-wrapper__Dpjw2 SideBar_mck-c-sidebar__sidebar-wrapper--istablet__IQ6ii mck-u-screen-only mck-c-module-wrapper" data-layer-region="sidebar"><div class="SideBar_mck-c-sidebar__epoAm mck-o-md-center"><div class="SideBar_mck-c-sidebar__share-icons-wrapper__9gB_c"><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--display-column___X0HDD_2734c4f SideBar_mck-c-sidebar__share-icons___eQy6"><div data-component="mdc-c-dropdown-menu" class="mdc-c-drop-down"><button data-component="mdc-c-button" aria-label="" type="button" id="button_id" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--ghost mdc-c-button--size-medium mdc-c-drop-down__rootmenu___yJzvz_2734c4f" aria-expanded="false" aria-haspopup="menu"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--default___f-hQM_2734c4f mdc-c-icon--size-md___yi5fA_2734c4f mck-share2-icon"></span></button><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="" class=""></div></div><button data-component="mdc-c-button" aria-label="Expandable Sidebar" type="button" id="button_id" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--ghost mdc-c-button--size-medium SideBar_mck-c-sidebar__toggle-btn__EL8iE" aria-expanded="false" data-layer-event-prefix="UI Item" data-layer-action="click" data-layer-category="sidebar" data-layer-subcategory="open" data-layer-text="open sidebar"><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mdc-c-icon--radial___y3csX_2734c4f mdc-c-icon--size-xxl___cL3ZT_2734c4f mck-plus-no-circle-icon"></span></button></div></div><div class="SideBar_mck-c-sidebar__content-outer__UdWCq"><div class="SideBar_mck-c-sidebar__eyebrow__5GSEq"></div><div class="SideBar_mck-c-sidebar__content__raEwe"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-3 SideBar_mck-c-sidebar__content-heading__NJekY"><div>Our methodology</div></h2><div class="SideBar_mck-c-sidebar__content-description__4p9iI mdc-u-ts-7"><div class="mdc-o-content-body"><strong>This article is based</strong> on a 25-minute, online-only Ipsos poll conducted on behalf of McKinsey between March 15 and April 18, 2022. A sample of 25,062 adults aged 18 and older from the continental United States, Alaska, and Hawaii was interviewed online in English and Spanish. To better reflect the population of the United States as a whole, post hoc weights were made to the population characteristics on gender, age, race/ethnicity, education, region, and metropolitan status. Given the <a href="https://www.pewresearch.org/politics/methodology/collecting-survey-data/internet-surveys/">limitations of online surveys</a>, it is possible that biases were introduced because of undercoverage or nonresponse. People with lower incomes, less education, people living in rural areas, or people aged 65 and older are underrepresented among internet users and those with high-speed internet access.</div></div></div></div></div></div> <p>Some of the differences in how the generations respond to survey questions suggest concerning levels of distress among young people, including an astounding 55 percent reporting having either been diagnosed with or having received treatment for mental illness (compared with 31 percent of people aged 55 to 64 reporting the same). US Surgeon General Vivek Murthy issued a public health advisory in December 2021 to address the “<a href="/mhi/our-insights/getting-to-the-bottom-of-the-teen-mental-health-crisis">youth mental-health crisis</a>” exacerbated by the COVID-19 pandemic.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="9280be5c-60cf-4e1d-a453-74d6cecc755e"><sup class="FootNote_footnotesup__e73z_">2</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="9280be5c-60cf-4e1d-a453-74d6cecc755e" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">“US Surgeon General issues advisory on youth mental health crisis further exposed by COVID-19 pandemic,” HHS press release, December 7, 2021; Deidre McPhillips, “Nearly 1 in 4 young adults in US treated for mental health during pandemic, CDC survey finds,” CNN, September 7, 2022.</span></span></span></a></span> Our research underscored the urgency of these problems. </p> <p>Some other differences between age groups are also notable. Young people report physical-health issues as an impediment to effectively performing work at higher rates than the general population, which includes people decades older than them. In fact, on every metric that interferes with effectively performing work, Gen Z reports more struggles than the general population. </p> <p>The AOS gives us a window into the mindset of the newest generation to enter the job market. Employers and other stakeholders may want to reflect upon this research and use it to gain a deeper understanding of how Gen Z feels about itself and its place in the working world, and how they can best support this cohort in the workforce.</p> <div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-c-inline-module-container mck-o-edge-to-edge StoryContainer_mck-c-story-container__TLkZC mck-c-module-wrapper"><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="" class="StoryContainer_mck-c-story-container__item__YhXnX"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-md-12 StoryContainer_mck-c-story-container__content-item__fg74z"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-md StoryContainer_mck-c-story-container__content-text__DEQ4O StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-4"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-5"><div>Gen Z’s employment patterns are less stable—and that worries them</div></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline"><div><p>Slightly more than half of the 18- to 24-year-olds surveyed are employed, but they have different experiences than workers of other ages. To start, they are more likely to be working multiple jobs (a quarter, compared with 16 percent of all workers) and are more likely to be doing independent work (slightly more than half, compared with 36 percent). While a portion of young people do independent work because they enjoy the work (28 percent) or because of the autonomy and flexibility it offers (24 percent), a majority would prefer work as a permanent or noncontract employee (56 percent). </p> <p>Gen Z is less financially secure: 45 percent are concerned about the stability of their employment (compared with 40 percent of all respondents) and are less likely than other respondents to report being able to cover living expenses for more than two months if faced with job loss. Gen Z is also more likely to report that the pay they receive does not allow for a good quality of life.</p> <p>Some of these trends may be by virtue of age and experience in the workforce; young people early in their careers typically earn less than those with more experience. Young workers are also less likely to have partners and dependents to support, so they may have the flexibility to work multiple jobs or work in independent positions that those with families may avoid.</p></div></div></div><div class="StoryContainer_mck-c-story-container__content-media__o8N4Z StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-8"><div class=""><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex1.svgz?cq=50&cpy=Center"/><img alt="Younger people work more jobs, are more likely to be independent workers, and are more concerned than other age groups about employment stability." src="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex1.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="" class="StoryContainer_mck-c-story-container__item__YhXnX"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-md-12 StoryContainer_mck-c-story-container__content-item__fg74z"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-md StoryContainer_mck-c-story-container__content-text__DEQ4O StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-4"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-5"><div>Many young people doubt they will ever hit key economic milestones</div></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline"><div><p>Almost a quarter of Gen Z respondents do not expect to retire, and only 41 percent expect to own a home one day. </p> <p>Optimistic explanations for these generational differences could be that young people enjoy their work and simply don’t want to retire, prefer to invest their capital in assets other than homes, or expect more geographic mobility than previous generations and want to maintain that flexibility without having a mortgage. It is also possible that people so far from both the typical age for retirement and home buying simply cannot envision themselves reaching these life phases. Another explanation may be that everyone feels this way in their youth, and had we surveyed previous generations when they were in the 18 to 24 age range, we may have seen similar results. It will be the work of our future research to parse which sentiments are most likely explained by respondents being in a particular life stage (such as being 18 to 24 years old) and which are unique to Gen Z when compared with other generations.</p> <p>A more pessimistic interpretation may be that young people expect their current job instability and financial insecurity to continue as their lives progress. National statistics support the notion that home buying and retirement are increasingly distant goals: the median age of an American home buyer was 56 last year, up from 36 in 1981.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="8875b6a3-898a-4908-a21c-8c64c427c0f9"><sup class="FootNote_footnotesup__e73z_">1</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="8875b6a3-898a-4908-a21c-8c64c427c0f9" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Jessica Lautz, “40 years of home buyer and seller data: How does the profile compare?,” National Association of Realtors, November 11, 2021. </span></span></span></a></span> Student debt represents a barrier to home buying for many young people.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="56c4e5c7-0d67-4b73-91ae-96cde27c3e63"><sup class="FootNote_footnotesup__e73z_">2</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="56c4e5c7-0d67-4b73-91ae-96cde27c3e63" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Alvaro Mezza, Daniel Ringo, and Kamila Sommer, “Can student loan debt explain low homeownership rates for young adults?”<em> Consumer & Community Context,</em> January 2019, Volume 1, Number 1.</span></span></span></a></span> Most Americans—even those approaching retirement age—lack sufficient savings to retire.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="cc984614-f8a0-4075-b0f0-3c0d3dcd66ce"><sup class="FootNote_footnotesup__e73z_">3</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="cc984614-f8a0-4075-b0f0-3c0d3dcd66ce" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Monique Morrissey, <em>The state of American retirement savings,</em> Economic Policy Institute, December 10, 2019. </span></span></span></a></span> Gen Z’s fear of never reaching traditional economic milestones may reflect greater pessimism and hopelessness than other generations have experienced. </p></div></div></div><div class="StoryContainer_mck-c-story-container__content-media__o8N4Z StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-8"><div class=""><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex2.svgz?cq=50&cpy=Center"/><img alt="Gen Z is less likely than other age groups to expect to retire or to own a home." src="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex2.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="" class="StoryContainer_mck-c-story-container__item__YhXnX"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-md-12 StoryContainer_mck-c-story-container__content-item__fg74z"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-md StoryContainer_mck-c-story-container__content-text__DEQ4O StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-4"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-5"><div>Gen Z finds it harder to work well for physical, mental, and practical reasons</div></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline"><div><p>We asked respondents whether various factors had an impact on their ability to effectively perform their work. There are five factors that employed 18- to 24-year-old respondents are more or as likely to cite as having a major impact compared with respondents of every other age group: a hostile work environment, mental-health issues, access to transportation to and from work, physical issues, and an inability to share your full self at work. Some of these factors may have a compounding effect; we’ve previously reported on the <a href="/mhi/our-insights/addressing-employee-burnout-are-you-solving-the-right-problem">ties between toxic workplace behavior, inclusivity, mental health, and attrition</a>. </p> <p>Over a quarter of 18- to 24-year-olds say mental-health issues have a major impact on their ability to perform at work (compared with 14 percent of all employed respondents). A third of 18- to 24-year-olds report believing that their mental health has a negative impact on their future job prospects. This belief appears to decline with age: the proportion of respondents reporting this dropped by five to six percentage points for every ten years gained. </p> <p>A puzzling finding was that of all employed workers, the youngest cohort is the most likely to report physical-health issues having a major impact. One explanation could be that older workers who experience physical-health issues are more likely to not be working as a result (32 percent of unemployed 55- to 64-year-olds say that physical health is a cause of their unemployment, compared with 9 percent of unemployed 18- to 24-year-olds). </p></div></div></div><div class="StoryContainer_mck-c-story-container__content-media__o8N4Z StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-8"><div class=""><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex3.svgz?cq=50&cpy=Center"/><img alt="Younger workers are more likely to report that various factors have a major impact on their ability to work effectively." src="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex3.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="" class="StoryContainer_mck-c-story-container__item__YhXnX"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-md-12 StoryContainer_mck-c-story-container__content-item__fg74z"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-md StoryContainer_mck-c-story-container__content-text__DEQ4O StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-4"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-5"><div>Gen Z reports remarkably high rates of mental-health struggles</div></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline"><div><p>One of the most notable findings of the survey is that 55 percent of 18- to 24-year-olds report having received a diagnosis and/or treatment for a mental illness. Respondents aged 55 to 64 years old, with decades more time to have received a diagnosis or gone into treatment, report this is the case 31 percent of the time. There are large variations across race and ethnicity in each age category: Asian Americans aged 35 to 54 years old report rates of diagnosis and/or treatment at less than half the rate of their White counterparts.</p> <p>The results of this survey echo <a href="/industries/healthcare/our-insights/addressing-the-unprecedented-behavioral-health-challenges-facing-generation-z">McKinsey’s previous research on the impact of the COVID-19 pandemic on mental well-being</a>. In addition to Gen Z respondents reporting a less positive life outlook than older generations in that study, Gen Z respondents were also more than three times as likely as other generations to report seeking treatment for thinking about or planning suicide in the 12-month period spanning late 2019 to late 2020 (7 percent, compared with 2 percent of those aged 41 to 56, and less than 2 percent for all other respondents).</p> <p>The higher percentage of young people reporting mental-health challenges may be due to increased awareness of mental health, a greater willingness to seek help, or an environment ripe for creating or aggravating mental-health issues. US Surgeon General Vivek Murthy’s public advisory noted that while mental-health concerns among youth have been rising in recent years, the pandemic accelerated the problem: “The pandemic added to the pre-existing challenges that America’s youth faced. It disrupted the lives of children and adolescents, such as in-person schooling, in-person social opportunities with peers and mentors, access to health care and social services, food, housing, and the health of their caregivers.”<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="c5136ace-788b-4505-931b-9ad4a9918573"><sup class="FootNote_footnotesup__e73z_">1</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="c5136ace-788b-4505-931b-9ad4a9918573" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">“US Surgeon General issues advisory on youth mental health crisis further exposed by COVID-19 pandemic,” December 7, 2022.</span></span></span></a></span></p> <p>Gen Z bears specific burdens due to their life stage, including emotional stress and grief from the pandemic and educational challenges from remote or interrupted learning. Those looking for jobs in the past few years have experienced something of a rollercoaster: youth unemployment reached an all-time high of 27.4 percent in April 2020 and has since settled to 8 percent in August 2022.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="e6a62d36-33d7-4d9b-a4fd-11a54be2e02d"><sup class="FootNote_footnotesup__e73z_">2</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="e6a62d36-33d7-4d9b-a4fd-11a54be2e02d" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">United States youth unemployment rate, Trading Economics database, accessed September 2022.</span></span></span></a></span> Even young people with the benefit of being college graduates have encountered difficulties finding jobs,<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="a387d607-358c-4f68-8b22-cfd35510110a"><sup class="FootNote_footnotesup__e73z_">3</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="a387d607-358c-4f68-8b22-cfd35510110a" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Elise Gould and Melat Kassa, <em>Young workers hit hard by the COVID-19 economy,</em> Economic Policy Institute, October 14, 2020.</span></span></span></a></span> had their previously secured job offers rescinded,<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="a5b62a85-7086-47bd-9a93-8a8524538368"><sup class="FootNote_footnotesup__e73z_">4</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="a5b62a85-7086-47bd-9a93-8a8524538368" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Josh Peter, “Grads face uncertain job market as coronavirus pushes companies to rescind offers,” <em>USA Today,</em> April 10, 2020.</span></span></span></a></span> or were unable to apply to graduate school because of the timing of the lockdowns throughout the pandemic.<span class="FootNote_footnote-holder__tjRqy"><a aria-label="footnote" href="javascript:void(0);" class="FootNote_footnote-wrapper__AIRwL undefined FootNote_inactive__VZfCp" aria-describedby="5b971473-8c3e-4d4c-b229-24431af07736"><sup class="FootNote_footnotesup__e73z_">5</sup><span class="FootNote_notch-wrapper__b_5NS"><span class="FootNote_notch__omKtY"></span></span><span class="FootNote_tooltip__QtrbA mdc-u-mt-2"><span class="FootNote_footnote-content__r2OVl"><span id="5b971473-8c3e-4d4c-b229-24431af07736" aria-hidden="true" data-module-theme="light" class="FootNote_footnote-text__VjKgO mck-u-links-inline">Melissa Korn, “Pandemic leads dozens of universities to pause Ph.D. admissions,” <em>Wall Street Journal,</em> December 29, 2020. </span></span></span></a></span> </p></div></div></div><div class="StoryContainer_mck-c-story-container__content-media__o8N4Z StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-8"><div class=""><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex4.svgz?cq=50&cpy=Center"/><img alt="More than half of 18- to 24-year-olds report having received a diagnosis and/or treatment for a mental illness." src="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex4.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="" class="StoryContainer_mck-c-story-container__item__YhXnX"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-md-12 StoryContainer_mck-c-story-container__content-item__fg74z"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-md StoryContainer_mck-c-story-container__content-text__DEQ4O StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-4"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-5"><div>Gen Z wants mental healthcare but worries about paying for it</div></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline"><div><p>Gen Z is more likely to report receiving treatment or diagnosis for a mental-health condition but also the most likely to report being unable to afford mental-health services (a fifth, compared with 14 percent of all respondents). Respondents aged 18 to 24 are 3.4 times more likely to cite a lack of access to affordable mental-health services as a top-three barrier to their well-being compared with 55- to 64-year-olds. </p> <p>Twelve percent of 18- to 24-year-olds report receiving a diagnosis but not treatment, much higher than the 5 percent reported for all respondents. <a href="/industries/healthcare/our-insights/addressing-the-unprecedented-behavioral-health-challenges-facing-generation-z">Stigma associated with mental and substance-use disorders</a> and a lack of family support may be a barrier to accessing mental- health care. Twenty-seven percent of 18- to 24-year-olds rely on their parent’s or school’s insurance; reluctance to communicate with elders about mental-health topics may be a deterrent. </p></div></div></div><div class="StoryContainer_mck-c-story-container__content-media__o8N4Z StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-8"><div class=""><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex5.svgz?cq=50&cpy=Center"/><img alt="Young people are more likely to report having sought mental-health services but less likely to feel they can afford them." src="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex5.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="" class="StoryContainer_mck-c-story-container__item__YhXnX"><div class="mck-o-container"><div class="mck-o-container--wrapped mck-o-container--mobile-spacing mdc-u-grid mdc-u-grid-col-md-12 StoryContainer_mck-c-story-container__content-item__fg74z"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-md StoryContainer_mck-c-story-container__content-text__DEQ4O StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-4"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-5"><div>In spite of its worries, Gen Z thinks the economic future is brighter than most other age groups do</div></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline"><div><p>Despite reporting higher levels of job insecurity and financial instability and higher rates of emotional distress and obstacles to working effectively, Gen Z’s view of economic opportunity is more optimistic than that of Gen X and baby boomers. </p> <p>The McKinsey Economic Opportunity Index—a scale that gauges Americans’ perceptions of past, present, and future economic opportunity—shows that Gen Z scored 100.4 (where 100 represents a neutral outlook), which is higher than every age cohort except for the one immediately above it. Not only that, Gen Z’s optimism decreased by only 1.6 percent over the last year, compared with 3 percent for all respondents on average.</p> <p>The only respondents who clearly feel far more positive than Gen Z are the ones aged 25 to 34. These slightly older young people, who have typically launched into their careers and have had more time to find their place in society, report the brightest outlook of all generations. </p></div></div></div><div class="StoryContainer_mck-c-story-container__content-media__o8N4Z StoryContainer_mck-c-story-container__container-sticky__EK8hB StoryContainer_mck-c-story-container__container-sticky--extra-spacing__uDmVE mdc-u-grid-col-md-span-8"><div class=""><picture data-component="mdc-c-picture" class="Exhibit_mck-c-exhibit__image__pyIDm"><source media="(min-width: 768px)" srcSet="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex6.svgz?cq=50&cpy=Center"/><img alt="Young respondents are marginally more optimistic than the average American." src="/~/media/mckinsey/featured%20insights/future%20of%20america/how%20does%20gen%20z%20see%20its%20place%20in%20the%20working%20world%20with%20trepidation/svgz-genzworkingworld-ex6.svgz?cq=50&cpy=Center" loading="lazy"/></picture></div><div class="mck-u-sr-only"></div></div></div></div></div></div> <p>Worrying about the mindset of the young has been popular at least since the times of Aristotle and Socrates and likely long before that. Some of Gen Z’s reported distress will sound familiar to all who have lived through the apprehension and doubt of launching themselves into economic independence.</p> <p>However, the high rates of reported mental-health challenges and other major obstacles to effective work that emerged from this research invite reflection. Gen Z respondents report alarming levels of negativity about themselves, their confidence in the future, and their ability to find contentment in American life.</p> <div data-module-category="" class="PullQuote_mck-c-pullquote__DbaQ5 mck-o-lg-center"><blockquote data-component="mdc-c-blockquote" class="PullQuote_mck-c-blockquote__6n21p PullQuote_mck-c-blockquote--hide-quotes__CpGpg mdc-c-blockquote mdc-c-blockquote--is-quotes___TozKo_2734c4f"><p>Gen Z respondents report alarming levels of negativity about themselves, their confidence in the future, and their ability to find contentment in American life.</p></blockquote></div> <p>While Gen Z is not the only generation facing mental-health challenges, their rates of distress may give employers, educators, and public-health leaders pause. These stakeholders may want to consider the sentiment of this emerging generation as they plan for the future. Employers who want to win their fair share of talent from all age groups in the workforce can use these insights to target their support for this critical group. </p></div><div class="container-placeholder"></div></div></div><div class="mdc-u-grid mdc-u-grid-gutter-xl"><section role="contentinfo" data-layer-region="article-about-authors" class="mdc-u-grid mdc-u-grid-col-md-12 AboutAuthor_mck-c-about-author__nRJzu"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-3 mdc-u-grid-col-lg-end-11"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f mdc-u-align-center"></h5><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline mck-u-links-inline--secondary mdc-u-mt-5"><div><p><strong><a href="/our-people/andre-dua">André Dua</a></strong> is a senior partner in McKinsey’s Miami office; <strong><a href="/our-people/kweilin-ellingrud">Kweilin Ellingrud</a></strong> is a senior partner in the Minneapolis office; <strong>Michael Lazar</strong> is a partner in the New York office, where <strong>Ryan Luby</strong> is an associate partner; and <strong>Sarah Pemberton</strong> is a manager in the Hong Kong office.</p> <hr> <p>This article was edited by Katy McLaughlin, a senior editor in the Southern California office.</p></div></div></div></section><section class="mdc-u-grid mdc-u-grid-col-md-12 mck-u-screen-only"><div class="mdc-u-grid-col-md-start-2 mdc-u-grid-col-md-end-12 mdc-u-grid-col-lg-start-5 mdc-u-grid-col-lg-end-9"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-c-heading--border___K8dj3_2734c4f mdc-u-align-center">Explore a career with us</h5><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--align-center___ar3mu_2734c4f"><a data-component="mdc-c-link" href="/careers/search-jobs" class="mdc-c-button___U4iY2_2734c4f mdc-c-button--secondary___Boipq_2734c4f mdc-c-button--size-large___jwpUy_2734c4f" aria-label="Search Openings" data-layer-event-prefix="CTA Link" data-layer-action="click" data-layer-category="careers" data-layer-subcategory="search" data-layer-text="Search Openings"><span class="mdc-c-link__label___Pfqtd_2734c4f">Search Openings</span></a></div></div></section></div></main></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="StandalonePromo" class="RelatedArticle_mck-c-article-related__GGA76 mck-u-screen-only" data-layer-region="related-articles"><div class="mdc-o-container__wrapper is-wrapped mdc-u-spaced-mobile"><h5 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-u-align-center">Related Articles</h5><div class="mdc-u-grid mdc-u-grid-col-md-3 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trepidation","fields":null,"databaseName":"web","deviceId":"fe5d7fdf-89c0-4d99-9aa3-b5fbd009c9f3","itemId":"50ffdcd4-6894-4103-a852-9418cc4974d7","itemLanguage":"en","itemVersion":1,"layoutId":"ae753eb4-a035-40b4-83bf-4b4438df6742","templateId":"683910db-02ba-40ba-92e7-726c880160a9","templateName":"ArticleJSS","placeholders":{"jss-main":[{"uid":"232bb7e9-289f-492d-a916-2b6185e44a84","componentName":"ArticleTemplate","dataSource":"","fields":{"data":{"articleTemplate":{"title":{"jsonValue":{"value":"How does Gen Z see its place in the working world? With trepidation"}},"sEOTitle":{"value":""},"description":{"jsonValue":{"value":"Americans 18 to 24 years old report high rates of mental-health challenges, impediments to effective work, and worries about the future, our latest American Opportunity Survey shows."}},"sEODescription":{"value":""},"displayDate":{"jsonValue":{"value":"2022-10-19T00:00:00Z"}},"body":{"value":"[[Audio 1]]\n[[DownloadsSidebar]]\n[[MostPopularArticles 3]]\n\u003cp\u003e\u003cstrong\u003eYouth can be an exhilarating time but also one of high anxiety,\u003c/strong\u003e as young people struggle to establish themselves economically and find their place in society. While each generation may encounter struggles and doubts as they join the workforce, Generation Z[[Footnote 1]] has entered the working world during a global pandemic and amid concerns over rising inflation rates, recession fears, geopolitical conflicts, and climate change. The latest iteration of McKinsey\u0026rsquo;s \u003ca href=\"/featured-insights/sustainable-inclusive-growth/future-of-america/american-opportunity-survey\"\u003eAmerican Opportunity Survey (AOS)\u003c/a\u003e reveals a generational gap in the workplace, with marked differences among how Gen Z and other generations view themselves, their ability to work effectively, and their futures.\u003c/p\u003e\n[[Sidebar authors]]\n\u003cp\u003eOur spring survey of 25,062 Americans included 1,763 respondents (see sidebar, \u0026ldquo;Our methodology\u0026rdquo;) in the Gen Z age range of 18 to 24. Our survey shows that \u003ca href=\"/featured-insights/mckinsey-explainers/what-is-gen-z\"\u003eGen Z respondents\u003c/a\u003e\u0026nbsp;who are working are more likely to have independent jobs or multiple jobs than older workers. Unlike other generations, they are less likely to expect this period of financial insecurity to end and have high levels of doubts about their eventual ability to either buy homes or retire.\u003c/p\u003e\n\u003cp\u003eEmployed Gen Z respondents are more likely to report that the pay they receive for their work does not allow them a good quality of life (26 percent, compared with 20 percent of other respondents) and are less likely than others to report feeling fairly recognized and rewarded for their work (56 percent, compared with 58 percent of other respondents). A remarkable 77 percent of Gen Z respondents report looking for a new job (almost double the rate of other respondents). While some degree of job churn in early careers is expected, the economic pessimism reported by Gen Z\u0026mdash;only 37 percent believe that most people in this country have economic opportunities\u0026mdash;suggests a deep malaise about their own prospects and those of other Americans.\u003c/p\u003e\n[[Sidebar 1]]\n\u003cp\u003eSome of the differences in how the generations respond to survey questions suggest concerning levels of distress among young people, including an astounding 55 percent reporting having either been diagnosed with or having received treatment for mental illness (compared with 31 percent of people aged 55 to 64 reporting the same). US Surgeon General Vivek Murthy issued a public health advisory in December 2021 to address the \u0026ldquo;\u003ca href=\"/mhi/our-insights/getting-to-the-bottom-of-the-teen-mental-health-crisis\"\u003eyouth mental-health crisis\u003c/a\u003e\u0026rdquo; exacerbated by the COVID-19 pandemic.[[Footnote 2]]\u0026nbsp; Our research underscored the urgency of these problems.\n\u003c/p\u003e\n\u003cp\u003eSome other differences between age groups are also notable. Young people report physical-health issues as an impediment to effectively performing work at higher rates than the general population, which includes people decades older than them. In fact, on every metric that interferes with effectively performing work, Gen Z reports more struggles than the general population.\n\u003c/p\u003e\n\u003cp\u003eThe AOS gives us a window into the mindset of the newest generation to enter the job market. Employers and other stakeholders may want to reflect upon this research and use it to gain a deeper understanding of how Gen Z feels about itself and its place in the working world, and how they can best support this cohort in the workforce.\u003c/p\u003e\n[[Story 1]]\n\u003cp\u003eWorrying about the mindset of the young has been popular at least since the times of Aristotle and Socrates and likely long before that. Some of Gen Z\u0026rsquo;s reported distress will sound familiar to all who have lived through the apprehension and doubt of launching themselves into economic independence.\u003c/p\u003e\n\u003cp\u003eHowever, the high rates of reported mental-health challenges and other major obstacles to effective work that emerged from this research invite reflection. Gen Z respondents report alarming levels of negativity about themselves, their confidence in the future, and their ability to find contentment in American life.\u003c/p\u003e\n[[PullQuote 1]]\n\u003cp\u003eWhile Gen Z is not the only generation facing mental-health challenges, their rates of distress may give employers, educators, and public-health leaders pause. These stakeholders may want to consider the sentiment of this emerging generation as they plan for the future. Employers who want to win their fair share of talent from all age groups in the workforce can use these insights to target their support for this critical group. \u003c/p\u003e"},"isFullScreenInteractive":{"boolValue":false},"hideStickySocialShareBar":{"boolValue":false},"desktopID":{"value":""},"mobileID":{"value":""},"desktopURL":{"value":""},"mobileURL":{"value":""},"desktopPaddingPercentage":{"value":""},"mobilePaddingPercentage":{"value":""},"desktopOverrideHeight":{"value":""},"mobileOverrideHeight":{"value":""},"cerosOembedURL":{"value":""},"cerosRenderMode":{"targetItem":null},"cerosBackgroundColor":{"targetItem":null},"hideByLine":{"boolValue":false},"tableOfContentsTitle":{"value":"TABLE OF CONTENTS"},"accessStatus":{"targetItem":{"key":{"value":"RegisteredUsers"},"value":{"value":"Registered Users"}}},"articleType":{"targetItem":{"displayName":"Article"}},"hasSpecialReport":{"boolValue":false},"contentType":{"targetItem":{"displayName":"Article"}},"sourcePublication":{"targetItem":null},"externalPublication":{"value":""},"mobileReady":{"boolValue":true},"forClientsOnly":{"boolValue":false},"excludeFromClientLink":{"boolValue":false},"originalPublishDate":{"jsonValue":{"value":"2022-10-19T00:00:00Z"}},"footnotes":{"value":"\u003col\u003e\n \u003cli\u003eFor this analysis, Gen Z is defined as those aged 18 to 24 in 2022. \u003c/li\u003e\n \u003cli\u003e\u0026ldquo;US Surgeon General issues advisory on youth mental health crisis further exposed by COVID-19 pandemic,\u0026rdquo; HHS press release, December 7, 2021; Deidre McPhillips, \u0026ldquo;Nearly 1 in 4 young adults in US treated for mental health during pandemic, CDC survey finds,\u0026rdquo; CNN, September 7, 2022.\u003c/li\u003e\n\u003c/ol\u003e"},"contributoryPractice":{"targetItems":[{"displayName":"Public Sector"}]},"aboutTheAuthors":{"value":"\u003cp\u003e\u003cstrong\u003e\u003ca href=\"/our-people/andre-dua\"\u003eAndr\u0026eacute; Dua\u003c/a\u003e\u003c/strong\u003e is a senior partner in McKinsey\u0026rsquo;s Miami office; \u003cstrong\u003e\u003ca href=\"/our-people/kweilin-ellingrud\"\u003eKweilin Ellingrud\u003c/a\u003e\u003c/strong\u003e is a senior partner in the Minneapolis office; \u003cstrong\u003eMichael Lazar\u003c/strong\u003e is a partner in the New York office, where \u003cstrong\u003eRyan Luby\u003c/strong\u003e is an associate partner; and \u003cstrong\u003eSarah Pemberton\u003c/strong\u003e is a manager in the Hong Kong office.\u003c/p\u003e\n\u003chr\u003e\n\u003cp\u003eThis article was edited by Katy McLaughlin, a senior editor in the Southern California office.\u003c/p\u003e"},"authors":{"targetItems":[]},"nonPartnerAuthors":{"targetItems":[]},"interactiveToUse":{"targetItem":null},"enableArticleComponents":{"boolValue":false},"relatedArticles":{"targetItems":[{"sourcePublication":{"targetItem":null},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"Addressing the unprecedented behavioral-health challenges facing Generation Z"},"url":{"path":"/industries/healthcare/our-insights/addressing-the-unprecedented-behavioral-health-challenges-facing-generation-z"},"eyebrow":{"targetItem":{"name":"Article"}},"articleType":{"targetItem":{"name":"Article"}},"contentType":{"targetItem":{"name":"Article"}},"description":{"value":"A series of consumer surveys and interviews conducted by McKinsey finds Gen Zers reporting the least positive life outlook, including lower levels of emotional and social well-being than older generations."},"standardImage":{"src":"/~/media/mckinsey/industries/healthcare systems and services/our insights/addressing the unprecedented behavioral health challenges facing generation z/health challenges facing gen z_1342300640_thumb_1536x1536.jpg","alt":"Young woman talks with therapist"},"heroImage":null,"thumbnailImage":null},{"sourcePublication":{"targetItem":{"name":"McKinsey Health Institute"}},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"Heat waves, the war in Ukraine, and stigma: Gen Z\u0026rsquo;s perspectives on mental health"},"url":{"path":"/mhi/our-insights/heat-waves-the-war-in-ukraine-and-stigma-gen-zs-perspectives-on-mental-health"},"eyebrow":{"targetItem":{"name":"Article"}},"articleType":{"targetItem":{"name":"Article"}},"contentType":{"targetItem":{"name":"Article"}},"description":{"value":"A new McKinsey Health Institute survey finds that Gen Z may have higher levels of perceived stigma compared with other generations, but they may be more accepting of people with mental illnesses."},"standardImage":{"src":"/~/media/mckinsey/mckinsey health institute/our insights/heat waves the war in ukraine and stigma gen zs perspectives on mental health/european-genz-mental-health-1283778862-standard-1536x1536.jpg","alt":"Friendly embrace"},"heroImage":null,"thumbnailImage":null},{"sourcePublication":{"targetItem":{"name":"McKinsey Health Institute"}},"publicationSource":null,"externalPublication":{"value":""},"title":{"value":"Addressing employee burnout: Are you solving the right problem?"},"url":{"path":"/mhi/our-insights/addressing-employee-burnout-are-you-solving-the-right-problem"},"eyebrow":{"targetItem":{"name":"Article"}},"articleType":{"targetItem":{"name":"Article"}},"contentType":{"targetItem":{"name":"Article"}},"description":{"value":"Employers have invested unprecedented resources in employee mental health and well-being. With burnout at all-time highs, leaders wonder if they can make a difference. 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episodes","Title":"","Url":"/mgi/forward-thinking"}]}}}]},"disruptorsignup":{"results":[{"mediaID":{"value":"full-width"},"renderMode":{"targetItem":{"key":{"value":"fullwidth"},"value":{"value":"Full Width"}}},"callToAction":{"url":"/user-registration/register-mvc","text":"Subscribe"},"title":{"jsonValue":{"value":"Stay current on your favorite topics"}}},{"mediaID":{"value":"left"},"renderMode":{"targetItem":{"key":{"value":"left"},"value":{"value":"Left"}}},"callToAction":{"url":"/user-registration/register-mvc","text":"Subscribe"},"title":{"jsonValue":{"value":"Stay current on your favorite topics"}}}]}},"ceros":{"results":[]},"exhibit":{"results":[]},"image":{"results":[]},"exhibitcarousel":{"results":[]},"pullquote":{"results":[{"description":{"value":"Gen Z respondents report alarming levels of negativity about themselves, their confidence in the future, and their ability to find contentment in American life."},"mediaID":{"value":"1"},"renderMode":{"targetItem":{"key":{"value":"center"},"value":{"value":"center-align"}}},"citation":{"value":""},"enableQuotes":{"boolValue":false},"CTA":{"url":"","linkType":"internal","text":"","target":"","className":"","queryString":"","anchor":"","targetItem":null}}]},"disruptorsignup":{"results":[{"mediaID":{"value":"full-width"},"renderMode":{"targetItem":{"key":{"value":"fullwidth"},"value":{"value":"Full Width"}}},"callToAction":{"url":"/user-registration/register-mvc","text":"Subscribe"},"title":{"jsonValue":{"value":"Stay current on your favorite topics"}}},{"mediaID":{"value":"left"},"renderMode":{"targetItem":{"key":{"value":"left"},"value":{"value":"Left"}}},"callToAction":{"url":"/user-registration/register-mvc","text":"Subscribe"},"title":{"jsonValue":{"value":"Stay current on your favorite topics"}}}]},"articlesidebar":{"results":[{"mediaID":{"value":"authors"},"description":{"jsonValue":{"value":"\u003cp\u003eThis article is a collaborative effort by \u003ca href=\"/our-people/andre-dua\"\u003eAndr\u0026eacute; Dua\u003c/a\u003e, \u003ca href=\"/our-people/kweilin-ellingrud\"\u003eKweilin Ellingrud\u003c/a\u003e, Michael Lazar, Ryan Luby, and Sarah Pemberton as part of ongoing McKinsey research to understand the perceptions of and barriers to economic opportunity in America.\u003c/p\u003e"}},"aboutTheAuthors":{"jsonValue":{"value":""}},"headline":{"jsonValue":{"value":"About the authors"}},"footnotes":{"value":""},"showShareTools":{"boolValue":true},"backgroundColor":{"targetItem":{"key":{"value":"Lightest Grey"},"value":{"value":"lightest-grey"}}},"gradientDirection":{"targetItem":{"key":{"value":"Bottom Right"},"value":{"value":"bottom-right"}}},"renderMode":{"targetItem":{"key":{"value":"Collapsible"},"value":{"value":"default"}}},"isAboutAuthor":{"boolValue":false},"background":{"targetItem":null},"image":{"src":null,"alt":""}},{"mediaID":{"value":"1"},"description":{"jsonValue":{"value":"\u003cstrong\u003eThis article is based\u003c/strong\u003e on a 25-minute, online-only Ipsos poll conducted on behalf of McKinsey between March 15 and April 18, 2022. A sample of 25,062 adults aged 18 and older from the continental United States, Alaska, and Hawaii was interviewed online in English and Spanish. To better reflect the population of the United States as a whole, post hoc weights were made to the population characteristics on gender, age, race/ethnicity, education, region, and metropolitan status. Given the \u003ca href=\"https://www.pewresearch.org/politics/methodology/collecting-survey-data/internet-surveys/\"\u003elimitations of online surveys\u003c/a\u003e, it is possible that biases were introduced because of undercoverage or nonresponse. People with lower incomes, less education, people living in rural areas, or people aged 65 and older are underrepresented among internet users and those with high-speed internet access."}},"aboutTheAuthors":{"jsonValue":{"value":""}},"headline":{"jsonValue":{"value":"Our methodology"}},"footnotes":{"value":""},"showShareTools":{"boolValue":true},"backgroundColor":{"targetItem":{"key":{"value":"Lightest Grey"},"value":{"value":"lightest-grey"}}},"gradientDirection":{"targetItem":{"key":{"value":"Bottom Right"},"value":{"value":"bottom-right"}}},"renderMode":{"targetItem":{"key":{"value":"Collapsible"},"value":{"value":"default"}}},"isAboutAuthor":{"boolValue":false},"background":{"targetItem":null},"image":{"src":null,"alt":""}}]},"boxout":{"results":[]},"globalsidebar":{"results":[]},"video":{"results":[]},"scrollycontainer":{"results":[]},"bespokeinteractive":{"results":[]},"storycontainer":{"results":[{"id":"816C01CE007E47C9B43FD23EBB09F0E2","mediaID":{"value":"1"},"collapseTopSpace":{"boolValue":false},"collapseBottomSpace":{"boolValue":false},"desktopTextColumnWidth":{"targetItem":null},"children":{"results":[{"id":"80605ED950914171821ADE7B2A6F711E","name":"Exhibit 1","template":{"name":"StoryItem"},"title":{"value":"Gen Z’s employment patterns are less stable—and that worries them"},"description":{"value":"\u003cp\u003eSlightly more than half of the 18- to 24-year-olds surveyed are employed, but they have different experiences than workers of other ages. To start, they are more likely to be working multiple jobs (a quarter, compared with 16 percent of all workers) and are more likely to be doing independent work (slightly more than half, compared with 36 percent). While a portion of young people do independent work because they enjoy the work (28 percent) or because of the autonomy and flexibility it offers (24 percent), a majority would prefer work as a permanent or noncontract employee (56 percent). \u003c/p\u003e\n\u003cp\u003eGen Z is less financially secure: 45 percent are concerned about the stability of their employment (compared with 40 percent of all respondents) and are less likely than other respondents to report being able to cover living expenses for more than two months if faced with job loss. Gen Z is also more likely to report that the pay they receive does not allow for a good quality of life.\u003c/p\u003e\n\u003cp\u003eSome of these trends may be by virtue of age and experience in the workforce; young people early in their careers typically earn less than those with more experience. Young workers are also less likely to have partners and dependents to support, so they may have the flexibility to work multiple jobs or work in independent positions that those with families may avoid.\u003c/p\u003e"},"exhibitImage":{"src":"/~/media/mckinsey/featured insights/future of america/how does gen z see its place in the working world with trepidation/svgz-genzworkingworld-ex1.svgz","alt":"Younger people work more jobs, are more likely to be independent workers, and are more concerned than other age groups about employment stability.","description":""},"scaleToFit":{"boolValue":false},"footnotes":{"value":""},"backgroundTheme":{"targetItem":{"key":{"value":"White"},"value":{"value":"-bg-white"}}},"mediaPlacement":{"targetItem":{"key":{"value":"Right"},"value":{"value":"is-align-right"}}},"eyebrow":{"value":""},"displayNumber":{"value":""}},{"id":"F3CCCA3813F24B82B38E0F3A7063F248","name":"Exhibit 2","template":{"name":"StoryItem"},"title":{"value":"Many young people doubt they will ever hit key economic milestones"},"description":{"value":"\u003cp\u003eAlmost a quarter of Gen Z respondents do not expect to retire, and only 41 percent expect to own a home one day. \u003c/p\u003e\n\u003cp\u003eOptimistic explanations for these generational differences could be that young people enjoy their work and simply don\u0026rsquo;t want to retire, prefer to invest their capital in assets other than homes, or expect more geographic mobility than previous generations and want to maintain that flexibility without having a mortgage. It is also possible that people so far from both the typical age for retirement and home buying simply cannot envision themselves reaching these life phases. Another explanation may be that everyone feels this way in their youth, and had we surveyed previous generations when they were in the 18 to 24 age range, we may have seen similar results. It will be the work of our future research to parse which sentiments are most likely explained by respondents being in a particular life stage (such as being 18 to 24 years old) and which are unique to Gen Z when compared with other generations.\u003c/p\u003e\n\u003cp\u003eA more pessimistic interpretation may be that young people expect their current job instability and financial insecurity to continue as their lives progress. National statistics support the notion that home buying and retirement are increasingly distant goals: the median age of an American home buyer was 56 last year, up from 36 in 1981.[[Footnote 1]] Student debt represents a barrier to home buying for many young people.[[Footnote 2]] Most Americans\u0026mdash;even those approaching retirement age\u0026mdash;lack sufficient savings to retire.[[Footnote 3]] Gen Z\u0026rsquo;s fear of never reaching traditional economic milestones may reflect greater pessimism and hopelessness than other generations have experienced.\n\u003c/p\u003e"},"exhibitImage":{"src":"/~/media/mckinsey/featured insights/future of america/how does gen z see its place in the working world with trepidation/svgz-genzworkingworld-ex2.svgz","alt":"Gen Z is less likely than other age groups to expect to retire or to own a home.","description":""},"scaleToFit":{"boolValue":false},"footnotes":{"value":"\u003col\u003e\n \u003cli\u003eJessica Lautz, \u0026ldquo;40 years of home buyer and seller data: How does the profile compare?,\u0026rdquo; National Association of Realtors, November 11, 2021. \u003c/li\u003e\n \u003cli\u003eAlvaro Mezza, Daniel Ringo, and Kamila Sommer, \u0026ldquo;Can student loan debt explain low homeownership rates for young adults?\u0026rdquo;\u003cem\u003e Consumer \u0026amp; Community Context,\u003c/em\u003e January 2019, Volume 1, Number 1.\u003c/li\u003e\n \u003cli\u003eMonique Morrissey, \u003cem\u003eThe state of American retirement savings,\u003c/em\u003e Economic Policy Institute, December 10, 2019. \u003c/li\u003e\n\u003c/ol\u003e"},"backgroundTheme":{"targetItem":{"key":{"value":"Gray"},"value":{"value":"-bg-lightest-grey"}}},"mediaPlacement":{"targetItem":{"key":{"value":"Right"},"value":{"value":"is-align-right"}}},"eyebrow":{"value":""},"displayNumber":{"value":""}},{"id":"D7014AE822F440E0BD6859C97ADD27DE","name":"Exhibit 3","template":{"name":"StoryItem"},"title":{"value":"Gen Z finds it harder to work well for physical, mental, and practical reasons"},"description":{"value":"\u003cp\u003eWe asked respondents whether various factors had an impact on their ability to effectively perform their work. There are five factors that employed 18- to 24-year-old respondents are more or as likely to cite as having a major impact compared with respondents of every other age group: a hostile work environment, mental-health issues, access to transportation to and from work, physical issues, and an inability to share your full self at work. Some of these factors may have a compounding effect; we\u0026rsquo;ve previously reported on the \u003ca href=\"/mhi/our-insights/addressing-employee-burnout-are-you-solving-the-right-problem\"\u003eties between toxic workplace behavior, inclusivity, mental health, and attrition\u003c/a\u003e. \u003c/p\u003e\n\u003cp\u003eOver a quarter of 18- to 24-year-olds say mental-health issues have a major impact on their ability to perform at work (compared with 14 percent of all employed respondents). A third of 18- to 24-year-olds report believing that their mental health has a negative impact on their future job prospects. This belief appears to decline with age: the proportion of respondents reporting this dropped by five to six percentage points for every ten years gained. \u003c/p\u003e\n\u003cp\u003eA puzzling finding was that of all employed workers, the youngest cohort is the most likely to report physical-health issues having a major impact. One explanation could be that older workers who experience physical-health issues are more likely to not be working as a result (32 percent of unemployed 55- to 64-year-olds say that physical health is a cause of their unemployment, compared with 9 percent of unemployed 18- to 24-year-olds).\n\u003c/p\u003e"},"exhibitImage":{"src":"/~/media/mckinsey/featured insights/future of america/how does gen z see its place in the working world with trepidation/svgz-genzworkingworld-ex3.svgz","alt":"Younger workers are more likely to report that various factors have a major impact on their ability to work effectively.","description":""},"scaleToFit":{"boolValue":false},"footnotes":{"value":""},"backgroundTheme":{"targetItem":{"key":{"value":"White"},"value":{"value":"-bg-white"}}},"mediaPlacement":{"targetItem":{"key":{"value":"Right"},"value":{"value":"is-align-right"}}},"eyebrow":{"value":""},"displayNumber":{"value":""}},{"id":"ED27F43BDE784A6C9B34CEF54EE21EF9","name":"Exhibit 4","template":{"name":"StoryItem"},"title":{"value":"Gen Z reports remarkably high rates of mental-health struggles"},"description":{"value":"\u003cp\u003eOne of the most notable findings of the survey is that 55 percent of 18- to 24-year-olds report having received a diagnosis and/or treatment for a mental illness. Respondents aged 55 to 64 years old, with decades more time to have received a diagnosis or gone into treatment, report this is the case 31 percent of the time. There are large variations across race and ethnicity in each age category: Asian Americans aged 35 to 54 years old report rates of diagnosis and/or treatment at less than half the rate of their White counterparts.\u003c/p\u003e\n\u003cp\u003eThe results of this survey echo \u003ca href=\"/industries/healthcare/our-insights/addressing-the-unprecedented-behavioral-health-challenges-facing-generation-z\"\u003eMcKinsey\u0026rsquo;s previous research on the impact of the COVID-19 pandemic on mental well-being\u003c/a\u003e. In addition to Gen Z respondents reporting a less positive life outlook than older generations in that study, Gen Z respondents were also more than three times as likely as other generations to report seeking treatment for thinking about or planning suicide in the 12-month period spanning late 2019 to late 2020 (7 percent, compared with 2 percent of those aged 41 to 56, and less than 2 percent for all other respondents).\u003c/p\u003e\n\u003cp\u003eThe higher percentage of young people reporting mental-health challenges may be due to increased awareness of mental health, a greater willingness to seek help, or an environment ripe for creating or aggravating mental-health issues. US Surgeon General Vivek Murthy\u0026rsquo;s public advisory noted that while mental-health concerns among youth have been rising in recent years, the pandemic accelerated the problem: \u0026ldquo;The pandemic added to the pre-existing challenges that America\u0026rsquo;s youth faced. It disrupted the lives of children and adolescents, such as in-person schooling, in-person social opportunities with peers and mentors, access to health care and social services, food, housing, and the health of their caregivers.\u0026rdquo;[[Footnote 1]]\u003c/p\u003e\n\u003cp\u003eGen Z bears specific burdens due to their life stage, including emotional stress and grief from the pandemic and educational challenges from remote or interrupted learning. Those looking for jobs in the past few years have experienced something of a rollercoaster: youth unemployment reached an all-time high of 27.4 percent in April 2020 and has since settled to 8 percent in August 2022.[[Footnote 2]] Even young people with the benefit of being college graduates have encountered difficulties finding jobs,[[Footnote 3]] had their previously secured job offers rescinded,[[Footnote 4]] or were unable to apply to graduate school because of the timing of the lockdowns throughout the pandemic.[[Footnote 5]]\n\u003c/p\u003e"},"exhibitImage":{"src":"/~/media/mckinsey/featured insights/future of america/how does gen z see its place in the working world with trepidation/svgz-genzworkingworld-ex4.svgz","alt":"More than half of 18- to 24-year-olds report having received a diagnosis and/or treatment for a mental illness.","description":""},"scaleToFit":{"boolValue":false},"footnotes":{"value":"\u003col\u003e\n \u003cli\u003e\u0026ldquo;US Surgeon General issues advisory on youth mental health crisis further exposed by COVID-19 pandemic,\u0026rdquo; December 7, 2022.\u003c/li\u003e\n \u003cli\u003eUnited States youth unemployment rate, Trading Economics database, accessed September 2022.\u003c/li\u003e\n \u003cli\u003eElise Gould and Melat Kassa, \u003cem\u003eYoung workers hit hard by the COVID-19 economy,\u003c/em\u003e Economic Policy Institute, October 14, 2020.\u003c/li\u003e\n \u003cli\u003eJosh Peter, \u0026ldquo;Grads face uncertain job market as coronavirus pushes companies to rescind offers,\u0026rdquo; \u003cem\u003eUSA Today,\u003c/em\u003e April 10, 2020.\u003c/li\u003e\n \u003cli\u003eMelissa Korn, \u0026ldquo;Pandemic leads dozens of universities to pause Ph.D. admissions,\u0026rdquo; \u003cem\u003eWall Street Journal,\u003c/em\u003e December 29, 2020.\n \u003c/li\u003e\n\u003c/ol\u003e"},"backgroundTheme":{"targetItem":{"key":{"value":"Gray"},"value":{"value":"-bg-lightest-grey"}}},"mediaPlacement":{"targetItem":{"key":{"value":"Right"},"value":{"value":"is-align-right"}}},"eyebrow":{"value":""},"displayNumber":{"value":""}},{"id":"0668828E76BE4D228DE53F28409FB512","name":"Exhibit 5","template":{"name":"StoryItem"},"title":{"value":"Gen Z wants mental healthcare but worries about paying for it"},"description":{"value":"\u003cp\u003eGen Z is more likely to report receiving treatment or diagnosis for a mental-health condition but also the most likely to report being unable to afford mental-health services (a fifth, compared with 14 percent of all respondents). Respondents aged 18 to 24 are 3.4 times more likely to cite a lack of access to affordable mental-health services as a top-three barrier to their well-being compared with 55- to 64-year-olds. \u003c/p\u003e\n\u003cp\u003eTwelve percent of 18- to 24-year-olds report receiving a diagnosis but not treatment, much higher than the 5 percent reported for all respondents. \u003ca href=\"/industries/healthcare/our-insights/addressing-the-unprecedented-behavioral-health-challenges-facing-generation-z\"\u003eStigma associated with mental and substance-use disorders\u003c/a\u003e\u0026nbsp;and a lack of family support may be a barrier to accessing mental- health care. Twenty-seven percent of 18- to 24-year-olds rely on their parent\u0026rsquo;s or school\u0026rsquo;s insurance; reluctance to communicate with elders about mental-health topics may be a deterrent.\n\u003c/p\u003e"},"exhibitImage":{"src":"/~/media/mckinsey/featured insights/future of america/how does gen z see its place in the working world with trepidation/svgz-genzworkingworld-ex5.svgz","alt":"Young people are more likely to report having sought mental-health services but less likely to feel they can afford them.","description":""},"scaleToFit":{"boolValue":false},"footnotes":{"value":""},"backgroundTheme":{"targetItem":{"key":{"value":"White"},"value":{"value":"-bg-white"}}},"mediaPlacement":{"targetItem":{"key":{"value":"Right"},"value":{"value":"is-align-right"}}},"eyebrow":{"value":""},"displayNumber":{"value":""}},{"id":"5D9310FA15154D1E92C737F2885B172A","name":"Exhibit 6","template":{"name":"StoryItem"},"title":{"value":"In spite of its worries, Gen Z thinks the economic future is brighter than most other age groups do"},"description":{"value":"\u003cp\u003eDespite reporting higher levels of job insecurity and financial instability and higher rates of emotional distress and obstacles to working effectively, Gen Z\u0026rsquo;s view of economic opportunity is more optimistic than that of Gen X and baby boomers. \u003c/p\u003e\n\u003cp\u003eThe McKinsey Economic Opportunity Index\u0026mdash;a scale that gauges Americans\u0026rsquo; perceptions of past, present, and future economic opportunity\u0026mdash;shows that Gen Z scored 100.4 (where 100 represents a neutral outlook), which is higher than every age cohort except for the one immediately above it. Not only that, Gen Z\u0026rsquo;s optimism decreased by only 1.6 percent over the last year, compared with 3 percent for all respondents on average.\u003c/p\u003e\n\u003cp\u003eThe only respondents who clearly feel far more positive than Gen Z are the ones aged 25 to 34. These slightly older young people, who have typically launched into their careers and have had more time to find their place in society, report the brightest outlook of all generations.\n\u003c/p\u003e"},"exhibitImage":{"src":"/~/media/mckinsey/featured insights/future of america/how does gen z see its place in the working world with trepidation/svgz-genzworkingworld-ex6.svgz","alt":"Young respondents are marginally more optimistic than the average 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