A new study from insurance and employee benefit giant MetLife has highlighted concerning trends regarding the youngest generation in the workforce—Gen Z. According to the 2025 Employee Benefit Trends Study, which surveyed nearly 3,000 full-time employees aged 21 and over in the US, Gen Z workers are struggling with higher levels of stress, burnout, and depression compared to older generations.
The data reveal that nearly half of Gen Z employees (46%) report feeling stressed, significantly higher than the 35% of respondents from other age groups. Additionally, 44% of Gen Z workers say they are burned out, a striking contrast to the 34% of employees across other generations who feel similarly. The mental health concerns extend further, with 35% of Gen Z employees describing themselves as depressed, more than double the 20% reported by other age groups.
Gen Z also feels a heightened sense of isolation in the workplace. Approximately 30% of Gen Z respondents say they feel lonely at work, compared to 22% of their colleagues in other generations. This sense of disconnection correlates with their overall work engagement, which lags behind older workers. While 79% of Baby Boomers reported being engaged at work, only 60% of Gen Z felt the same. Productivity and happiness levels also reflect this disparity, with just 64% of Gen Z feeling productive and 59% reporting happiness, compared to 86% and 71%, respectively, among Boomers.
The lack of confidence among Gen Z is apparent in their self-perception of success. In 2024, just 50% of Gen Z respondents felt they had achieved decent financial health compared to 58% of workers in other age groups. Moreover, Gen Z’s expectations for financial success are particularly high, with some believing that US$9.5 million (S$12.8 million) in the bank is necessary to be considered financially successful. This may explain why many members of Gen Z are leaning on financial support from family, friends, or even government assistance.
The report attributes much of Gen Z’s struggles to the unique challenges they have faced throughout their lives, including entering the workforce during the COVID-19 pandemic, growing up with pervasive social media, and living with climate anxiety. These factors have contributed to the mental and social health challenges they now face in the workplace.
Despite these hurdles, Gen Z’s outlook can be positively influenced by benefits that support their holistic well-being. MetLife’s research shows that offering voluntary benefits, such as life and accident insurance, can have a significant impact on Gen Z employees’ mental and social health. In particular, the study found that benefits like pet insurance, dental insurance, and commuter perks help enhance Gen Z’s sense of loyalty to their employers, while childcare benefits and auto insurance improve their overall happiness.
MetLife advises that HR and business leaders have an opportunity to adjust their employee care models to support Gen Z more effectively, and creating social and supportive work cultures, as well as providing the right benefits, can help improve engagement and retention among this generation.
As the youngest workforce demographic, Gen Z faces significant challenges, but with the right support from employers, their outlook can improve, benefiting their personal well-being and workplace performance.