Gen Z Workers Face Confidence Crisis Amid Layoffs and Stagnant Pay

The economic landscape of 2025 is fraught with challenges, and none feel the brunt more acutely than Generation Z workers. As layoffs surge and wages stagnate, the confidence of young professionals is at an all-time low. The once-optimistic outlook of Gen Z, who entered the workforce with high expectations, has been replaced by a sense of uncertainty and pessimism. This shift is not just a matter of individual morale; it has broader implications for the economy and the future of work.

The surge in layoffs, particularly in industries like technology, retail, and finance, has left many young workers feeling uncertain about their professional futures. Major tech companies, including meta, amazon, and Twitter, have made significant workforce reductions, leaving thousands of employees without jobs. This trend is not new, but its frequency and scale have become concerning for younger generations. In particular, Gen Z and Millennials are facing the reality that the opportunities that seemed abundant just a few years ago are now much harder to come by.



The economic uncertainty and global instability, including factors such as the COVID-19 pandemic, ongoing supply chain issues, inflationary pressures, and geopolitical tensions, have disrupted the economic landscape. This has led to a shrinking number of job opportunities and increased competition for positions. Companies are more likely to hire experienced workers or those with specialized skills, leaving younger, less experienced job seekers in a more vulnerable position.

The rise of the gig economy and freelance work means that many younger workers are seeking alternative ways to earn a living. However, gig jobs often come with less stability, fewer benefits, and less career growth potential compared to traditional, full-time roles. This further contributes to the pessimism among Gen Z workers, who are just entering the workforce and are confronted with the challenge of an unpredictable job market before they even settle into a long-term career path.

The psychological distress experienced by Gen Z workers is a significant concern. A study on 996 work culture and work overload reveals that these factors indirectly influence the psychological distress of Gen Z workers via job burnout and job satisfaction. The study suggests that perceived career development opportunities and perceived pay for performance indirectly influence their psychological distress via job satisfaction. This highlights the need for employers to address these issues to ensure the long-term psychological well-being and workforce engagement of their employees.

To address the psychological distress and decreased performance among Gen Z workers, employers can implement several specific strategies. Promoting work-life balance, reducing work overload, enhancing career development opportunities, implementing fair compensation and recognition systems, and fostering a supportive work environment are all crucial steps. By adopting these measures, employers can help alleviate the psychological distress and decreased performance among Gen Z workers, ultimately leading to a more engaged and productive workforce.

The current economic conditions, characterized by high inflation and stagnant wages, have significantly impacted Gen Z workers' confidence in their job security and future career prospects. According to data from Glassdoor, less than half of all workers are optimistic about the future, with entry-level employees feeling particularly pessimistic. This pessimism is driven by recession worries, stagnant pay, and an increasingly competitive job market.

The economic uncertainty and global instability, including factors such as the COVID-19 pandemic, ongoing supply chain issues, inflationary pressures, and geopolitical tensions, have disrupted the economic landscape. This has led to a shrinking number of job opportunities and increased competition for positions. Companies are more likely to hire experienced workers or those with specialized skills, leaving younger, less experienced job seekers in a more vulnerable position.

The rise of the gig economy and freelance work means that many younger workers are seeking alternative ways to earn a living. However, gig jobs often come with less stability, fewer benefits, and less career growth potential compared to traditional, full-time roles. This further contributes to the pessimism among Gen Z workers, who are just entering the workforce and are confronted with the challenge of an unpredictable job market before they even settle into a long-term career path.

The psychological distress experienced by Gen Z workers is a significant concern. A study on 996 work culture and work overload reveals that these factors indirectly influence the psychological distress of Gen Z workers via job burnout and job satisfaction. The study suggests that perceived career development opportunities and perceived pay for performance indirectly influence their psychological distress via job satisfaction. This highlights the need for employers to address these issues to ensure the long-term psychological well-being and workforce engagement of their employees.

To address the psychological distress and decreased performance among Gen Z workers, employers can implement several specific strategies. Promoting work-life balance, reducing work overload, enhancing career development opportunities, implementing fair compensation and recognition systems, and fostering a supportive work environment are all crucial steps. By adopting these measures, employers can help alleviate the psychological distress and decreased performance among Gen Z workers, ultimately leading to a more engaged and productive workforce.

The current economic conditions, characterized by high inflation and stagnant wages, have significantly impacted Gen Z workers' confidence in their job security and future career prospects. According to data from Glassdoor, less than half of all workers are optimistic about the future, with entry-level employees feeling particularly pessimistic. This pessimism is driven by recession worries, stagnant pay, and an increasingly competitive job market.

The economic uncertainty and global instability, including factors such as the COVID-19 pandemic, ongoing supply chain issues, inflationary pressures, and geopolitical tensions, have disrupted the economic landscape. This has led to a shrinking number of job opportunities and increased competition for positions. Companies are more likely to hire experienced workers or those with specialized skills, leaving younger, less experienced job seekers in a more vulnerable position.

The rise of the gig economy and freelance work means that many younger workers are seeking alternative ways to earn a living. However, gig jobs often come with less stability, fewer benefits, and less career growth potential compared to traditional, full-time roles. This further contributes to the pessimism among Gen Z workers, who are just entering the workforce and are confronted with the challenge of an unpredictable job market before they even settle into a long-term career path.

The psychological distress experienced by Gen Z workers is a significant concern. A study on 996 work culture and work overload reveals that these factors indirectly influence the psychological distress of Gen Z workers via job burnout and job satisfaction. The study suggests that perceived career development opportunities and perceived pay for performance indirectly influence their psychological distress via job satisfaction. This highlights the need for employers to address these issues to ensure the long-term psychological well-being and workforce engagement of their employees.

To address the psychological distress and decreased performance among Gen Z workers, employers can implement several specific strategies. Promoting work-life balance, reducing work overload, enhancing career development opportunities, implementing fair compensation and recognition systems, and fostering a supportive work environment are all crucial steps. By adopting these measures, employers can help alleviate the psychological distress and decreased performance among Gen Z workers, ultimately leading to a more engaged and productive workforce.