Here’s a startling fact: Gen Z’s approach to mental health days might be reshaping the workplace—and not necessarily in a way that benefits them. But here’s where it gets controversial: while these young workers are prioritizing their well-being, some employers are growing hesitant to hire them, fearing frequent absences. Could this trend cost Gen Z their jobs in the long run? Let’s dive in.
Every year, Australian workplaces lose a staggering 26 million workdays due to young employees aged 18 to 29 taking time off for mental health reasons. That’s according to researchers at Macquarie University, who found this age group to be the most stressed demographic in the country—alongside women and workers in Victoria. And this is the part most people miss: these young workers are one and a half times more likely to experience distress compared to their older counterparts aged 50 to 64. The study, Workforce Psychological Distress and Absenteeism in Australia, draws on data from the Australian Bureau of Statistics National Health Survey (2020-2021).
Lead researcher Kristy Burns explains that many Gen Z workers are in casual roles with little job security, leading to significant financial stress. But it’s not just about money. “Young people often face workplace conflict, lack of control over their tasks, and even bullying—all of which take a toll on mental health,” she notes. The concern? Employers might start avoiding hiring young workers altogether, despite their valuable contributions. After all, employment itself can improve mental health, and society benefits when young people are seen as essential to the workforce.
The issue isn’t isolated. Over the past 20 years, psychological distress has been on the rise, likely worsened by the Covid-19 pandemic. Stress costs workplaces nearly $17 billion annually, with highly stressed workers missing over 20 days of work per year—an entire extra month compared to their less stressed peers. It’s also linked to 10% of serious injury claims, with 18% of workers reporting psychological distress.
Clerical and administrative workers top the list at 25.9%, followed by financial and insurance services at 23%. Interestingly, mining workers report the least stress at just 8.5%. Younger workers, despite making up a smaller portion of the workforce, account for the largest number of stress-related absences—26 million days. Healthcare, education, hospitality, and retail sectors see the most days off.
Women are disproportionately affected, with 21.9% experiencing distress compared to 14.8% of men. Victoria leads in stress rates at 22%, followed by the ACT and NT at 19%. Western Australia has the lowest stress rate at 14%. Victoria also tops the list for annual average lost days (5.7), while the ACT has the fewest (3.35).
Earlier this year, News Corp’s Growth Distillery and Medibank found that 34% of Australians are experiencing burnout, with 45% of those being Gen Z and 41% Millennials. The common culprits? Lack of downtime and feeling overwhelmed by career, family, and social pressures. The Maslach Burnout Inventory (MBI) defines burnout through exhaustion, cynicism toward work, and reduced professional accomplishment.
Here’s a bold take: Milly Bannister, founder of Gen Z mental health charity ALLKND, argues that framing burnout as merely “being too tired from working too much” is a major oversimplification. “It’s an identity crisis,” she says. “When work erodes your sense of self, values, and ability to connect with others, that’s when the real damage happens.” For her, burnout isn’t about workload—it’s about misalignment, when once-fulfilling work becomes draining.
So, what do you think? Is Gen Z’s approach to mental health days a necessary shift, or a red flag for employers? Are we oversimplifying burnout, or is it truly about workload? Let’s spark a conversation—share your thoughts below!
