Bold takeaway: Gen Z’s mental health days may be quietly shaping hiring and workplace dynamics more than expected, and the full story behind this trend is more nuanced than it appears.
Gen Z workers—ages roughly 18 to 29—are taking a substantial share of distress-related time off, which could be affecting workplaces and employment opportunities in ways many employers don’t fully realize. A Macquarie University study reported about 26 million days of work annually are missed by this age group, placing them among the most stressed demographics in Australia, alongside women and residents of Victoria.
The study indicates that young workers in this age bracket are about 1.5 times more likely to experience distress than their peers aged 50 to 64. These findings come from the Australian Bureau of Statistics National Health Survey data for 2020 and 2021 and are detailed in the report titled Workforce Psychological Distress and Absenteeism in Australia. Lead author Kristy Burns notes that many young workers hold casual positions with limited job security and face significant financial pressures, which can elevate stress levels.
Beyond job insecurity, Burns highlights that younger employees often contend with workplace conflicts, limited control over their tasks, and bullying — all factors linked to poorer mental health. The concern is not to deter employers from hiring young people, but to prevent stigma or bias against them based on distress signals. Young workers contribute meaningfully to the workforce, and meaningful employment is generally beneficial for mental health and societal well-being.
The trend appears to reflect a broader rise in psychological distress over the past two decades, a trajectory likely amplified by the Covid-19 pandemic, according to Burns, who spoke with The Advertiser. The report estimates that stress costs Australian workplaces nearly $17 billion per year, with the most distressed employees missing more than 20 workdays annually — roughly one extra month off compared with their less-stressed counterparts.
Distress also contributes to around 10% of serious injury claims, while 18% of workers report experiencing psychological distress. Within the data, clerical and administrative workers show the highest distress at 25.9%, followed by those in financial and insurance services at 23%. Conversely, mining workers exhibit the lowest distress levels at 8.5%.
Overall, the analysis suggests about 56 million distress-related days off across the workforce, with younger workers accounting for the largest share despite representing a smaller portion of the total labor pool. Industries with the greatest distress-related absences include healthcare, education and training, accommodation and food services, and retail. In terms of demographics, women report higher distress (21.9%) than men (14.8%), and regional comparisons show Victoria with the highest stress rates at 22%, followed by the ACT and Northern Territory at 19%. Western Australia records the lowest rate at 14%.
When looking at lost workdays, Victoria leads with an average annual loss of 5.7 days, followed closely by Tasmania at 5.19 days. The ACT records the fewest distress-related days off, averaging 3.35 days. These figures align with broader discussions about burnout in Australian society; a separate study by News Corp’s Growth Distillery and Medibank reported that 34% of Australians currently experience burnout, with 45% of those cases among Gen Z and 41% among Millennials. The cited causes include insufficient downtime and daily pressures from career demands, family responsibilities, and social expectations.
The Maslach Burnout Inventory (MBI) remains the most commonly used measure of burnout. It defines burnout through three criteria: exhaustion, cynicism or depersonalization toward one’s work, and a reduced sense of personal accomplishment. Gen Z mental health charity ALLKND founder Milly Bannister argues that burnout extends beyond mere fatigue or workload. She describes burnout as an identity crisis—when work erodes one’s sense of self, values, and social connections, long-term damage ensues. In her view, burnout is less about the amount of work and more about a mismatch between the work and what energizes or sustains an individual.
