Does Gen Z Have It Harder? The Case for Supporting All Employees

Every generation probably believes that they’ve had the hardest path to success in their careers. However, when it comes to Gen Z, there is evidence to suggest that they might genuinely face greater challenges in building careers and achieving financial independence. Today’s emerging workforce are facing a perfect storm of economic instability, housing unaffordability, and job precarity – all of which are reshaping how they approach life and work.

I’ve been looking into some Financial Times research pulled from diverse sources such as the ONS, Resolution Foundation & King’s College London to try and make sense of the Gen Z prospects.

A Tougher Climb to Financial Independence

For Gen Z, the cost of living is comparatively higher than ever, whilst wage growth has been lagging behind for a time. Home ownership, once a key milestone of adulthood, is increasingly out of reach, unless you’re able to bank at The Bank of Mum & Dad (or The Bank of Family)  – with research indicating that only 10% of under-25s own homes, compared to 24% two decades ago.

Even renting has become a struggle with many Gen Z spending nearly half their income on housing. In the UK this has led to around a third of 25-27 year olds continuing to live with parents/family – a stark contrast to the independence most previous generations were able to enjoy at the same age.

Job Market Challenges

The employment landscape is no less daunting. Gen Z has entered the workforce after over a decade of weak wage growth, whilst the rising number of jobs in the gig/freelance economy offer minimal security. Recent increases in the minimum wage have helped in a small way but does little to address systemic issues like underemployment and job instability. These economic realities make it harder for young adults to envision stable, long-term, satisfying careers, making the variety and range of freelance opportunities more attractive.

The Mental Health Toll

Economic struggles don’t just hit wallets  – they take a toll on mental health too. Benefit claims for mental health disorders among 16- to 27-year-olds have more than doubled in three years, driven by a mix of financial insecurity, housing challenges, and the lingering effects of the pandemic. It’s no wonder that two-thirds of older adults believe young people’s mental health is worse than when they were younger.

Changing Social and Lifestyle Norms

Financial instability is also reshaping Gen Z’s social and lifestyle choices. Insecure work and stagnating salaries leave many unable to build their lives around the traditional milestones like home ownership, marriage and starting families. Up to two-thirds have also reported declining social plans due to economic constraints. These shifts underline how deeply economic factors influence not just individual lives but societal trends.

Why Supporting All Employees Matters

While Gen Z’s challenges are unique, they highlight some of the broader issues affecting workers across all generations. Rising housing costs, job insecurity, and mental health struggles don’t respect generational boundaries – they impact everyone, albeit in different ways.

Organisations have a critical role to play in helping to address these challenges. By fostering a culture of understanding and inclusivity, they can create workplaces where all employees, regardless of age or circumstances, feel supported. There are an increasing number of initiatives around areas such as fair compensation, mental health resources, and flexible work arrangements which are not just perks of the job – but are necessities for thriving in today’s economy.

So Gen Z do indeed face steeper obstacles than their more recent predecessors, for whom work was the key to structuring their lives – acquiring a home, settled relationship, personal and family stability, and opportunities for travel, new experiences, and new roles. Without the ability to build that structure it’s no surprise they look for experience, development, variety and independence.

Leaders and managers should start acknowledging the obstacles and constraints to building skills, knowledge and careers and work towards alleviating systemic barriers.

Empowering Gen Z will help build stronger, more equitable workplaces for everyone. Supporting employees isn’t just about addressing generational differences – it’s about recognising and addressing shared human challenges.