Last Updated on April 4, 2025 by Bertrand Clarke

Generation Z, the demographic cohort born roughly between 1997 and 2012, is coming of age in an era defined by rapid technological advancements, social change, and, significantly, global economic volatility. While digital natives are often lauded for their adaptability and entrepreneurial spirit, they are also uniquely vulnerable to the anxieties stemming from economic uncertainties, particularly those linked to international trade policies and shifting global markets. This article explores the multifaceted ways in which these macroeconomic factors are impacting Gen Z’s mental health, career aspirations, and overall sense of financial security.

The Economic Landscape: A Primer for Gen Z

To understand the specific challenges faced by Gen Z, it’s crucial to contextualize the economic environment they’ve inherited. Over the past decade, globalization has become increasingly complex. International trade agreements, once viewed as engines of growth, have faced scrutiny and renegotiation. Events like the US-China trade tensions under the Trump Administration have introduced tariffs, disrupted supply chains, and created uncertainty for businesses worldwide.

These events have a direct bearing on the job market that Gen Z is entering. Companies may delay hiring, reduce investment, or even implement layoffs when faced with increased costs or uncertain demand. Industries reliant on international trade, such as manufacturing, agriculture, and technology, are particularly susceptible, and these sectors often employ a significant portion of young workers.

Furthermore, rising inflation, increasing interest rates, and recessionary warnings have only intensified the sense of economic instability among Gen Z. Many are already grappling with student loan debt, the high cost of living, and the challenge of entering a competitive job market. The added layer of trade-related uncertainty can exacerbate these existing pressures.

The Mental Health Toll: Anxiety, Depression, and the Future

The economic climate is taking a toll on the mental health of Gen Z. Studies consistently show that younger generations report higher rates of anxiety and depression compared to previous cohorts. While numerous factors contribute to this trend, financial worries are a significant driver.

• Job Market Anxiety: The fear of not finding a stable job is a major source of stress for Gen Z. They see news of layoffs, hiring freezes, and economic downturns, which can lead to feelings of hopelessness and despair. The pressure to secure internships and build a strong resume starts early, adding to the pre-existing academic stress.
• Financial Instability: Gen Z is often burdened with student loan debt and faces the challenge of saving for the future in an era of rising costs. The uncertainty surrounding trade policies and economic stability makes it difficult to plan for long-term goals like buying a home or starting a family.
• Identity and Purpose: For many young people, their career is intrinsically linked to their sense of identity and purpose. When the job market is unstable, it can shake their confidence and make them question their future prospects. The feeling of being unable to control their economic destiny can be particularly demoralizing.

Data and Statistics:

• A recent study by Deloitte found that over 40% of Gen Z respondents reported feeling stressed or anxious all or most of the time. Financial concerns were cited as a major contributing factor.
• The American Psychological Association (APA) has reported a steady increase in mental health concerns among young adults, with economic uncertainty consistently cited as a key stressor.
• According to a survey by Pew Research Center, Gen Z is more likely than older generations to view economic inequality as a major problem in the country.

Beyond the Headlines: The Lived Experiences of Gen Z

To fully understand the impact of economic uncertainty on Gen Z, it’s essential to consider their lived experiences.

• The Gig Economy: Many Gen Z individuals turn to the gig economy to supplement their income or gain work experience. While this can offer flexibility, it often lacks the stability and benefits of traditional employment, adding to financial insecurity.
• Delayed Milestones: Economic pressures are forcing many Gen Z individuals to delay major life milestones such as marriage, homeownership, and starting a family. This can lead to feelings of frustration and a sense of being behind their peers.
• Increased Competition: The job market is highly competitive, with many qualified candidates vying for limited positions. This can lead to feelings of inadequacy and a constant need to prove oneself.

Coping Mechanisms and Seeking Support:

Despite the challenges they face, Gen Z is also known for its resilience and resourcefulness. Many are actively seeking ways to cope with economic anxiety and improve their financial literacy.

• Financial Education: Increasing numbers of Gen Z are seeking out resources on personal finance, investing, and debt management. They are using online tools, apps, and educational platforms to become more informed about their finances.
• Mental Health Resources: Gen Z is more open to discussing mental health and seeking professional help than previous generations. They are using online therapy platforms, support groups, and mental health apps to manage their anxiety and depression.
• Community and Collaboration: Many Gen Z individuals are finding support and solidarity in online communities and social media groups. They are sharing their experiences, offering advice, and working together to address economic challenges.
• Entrepreneurship: Some Gen Z members are taking a proactive approach by starting their own businesses. They are using their tech-savviness and entrepreneurial spirit to create their own opportunities and gain financial independence.

Policy Implications and the Role of Institutions:

Addressing the economic anxieties of Gen Z requires a multifaceted approach involving government policies, educational institutions, and businesses.

• Government Policies: Governments can play a role by investing in education and job training programs, supporting small businesses, and implementing policies that promote fair wages and worker protections. They can also provide a safety net for those who are struggling financially.
• Educational Institutions: Schools and universities can incorporate financial literacy courses into their curriculum and provide students with access to mental health services. They can also offer career counseling and job placement assistance.
• Businesses: Companies can support Gen Z employees by offering competitive salaries, benefits, and opportunities for professional development. They can also create a supportive work environment that prioritizes mental health and well-being.

Conclusion:

Gen Z is facing a unique set of challenges as they navigate the complexities of a globalized economy. Trade policies, economic uncertainty, and a competitive job market are all contributing to heightened levels of anxiety and depression. While these challenges are significant, Gen Z is also demonstrating remarkable resilience, resourcefulness, and a willingness to seek help. By understanding the specific needs of this generation and implementing supportive policies and programs, we can help them thrive in an ever-changing world. It is crucial for policymakers, educators, and businesses to recognize the impact of economic factors on Gen Z’s mental health and well-being, and to work collaboratively to create a more stable and equitable future for all.