Maybe the kids aren’t alright after all. With recent report findings that drew on benefits data from over 20,000 employers and three million plan members, “The kids are all grown up: checking in on Generation Z” report provides a rare, large-scale view into how the newest segment of the workforce is experiencing and managing their health challenges.
Projected to make up the largest segment of Canada’s workforce by the year 2030, Gen Z ‘s oldest members are now approaching age 30 bringing a distinctive set of values and needs with them. This generation’s impact is expected to have significant implications in many areas for employers, health systems, insurers, and for public policy.
The report suggests that key factors that are impacting the mental and physical health of this generation include digital connectivity, COVID-19 lockdown, climate anxiety related to health concerns and financial worries related to high rents and rising cost of living as they start their careers. Sedentary lifestyles and poor sleep habits are negatively affecting physical health.
On a positive note, despite some residual stigma, Gen Z has been raised with greater openness about discussing and seeking help for their mental health challenges.
Higher mental health rates
One of the most pressing issues identified in this Sun Life Financial Report was the high rate of mental health conditions. While chronic conditions are lower than that of older workers, data shows that over 50 percent of Gen Z’s long-term disability (LTD) claims are attributed to a mental health condition.
When compared to approximately 40 percent across the overall plan member population, the gap highlights a disproportionate burden carried by younger workers as they enter early career stage—often characterized by job insecurity, financial stress and identity formation.
For Gen Z women, mental health disorders account for more than 60 per cent of long-term disability claims and twice the rate of therapy treatments than males. These figures align with broader research indicating higher rates of anxiety, depression, and stress-related conditions among young women said to be exacerbated by social pressures, caregiving expectations, and systemic inequities.
For Gen Z men, the growth in utilization of mental health services is also accelerating rapidly.
Antidepressant use among Gen Z men increased by over 50 per cent from 2021-2024, outpacing usage growth by Gen Z women. Similarly, visits to psychologists by Gen Z men grew almost twice as fast as those of the overall population.
This trend suggests a gradual reduction in stigma surrounding mental health care for young men, alongside increasing awareness and willingness to seek help.
Use of antidepressants
According to the report, antidepressant drug claims for Gen Z grew at double the rate of overall plan members over a three-year period. This trend may be present due to multiple factors: increased prevalence of diagnosed mental health conditions, improved access to care through employer benefits, and heightened awareness following the COVID-19 pandemic.
However, rising prescription rates also raise questions about long-term sustainability and adequacy of current support models. While medication can be an effective component of treatment, it is most beneficial when combined with therapy, workplace accommodations, and preventive mental health strategies.
Increases in chronic disease
Claims for medications treating asthma and chronic obstructive pulmonary disorder (COPD), diabetes, high blood pressure, and high cholesterol are also increasing at rate two to three times higher for Gen Z than for older age cohorts.
Sun Life’s report suggests that if these trends continue, today’s Gen Z’s employees could experience significantly higher rates of chronic disease by midlife than previous generations aged 40-59. This projection represents a potential long- term strain on both employer-sponsored benefits plans and the public healthcare system.
Diabetes-related drug claims are particularly noteworthy with use by individuals under 30 growing two to four times faster than among those aged 30 to 60. Furthermore, diabetes drug claims for Gen Z women are growing 40 per cent faster than for Gen Z men, highlighting another emerging gender disparity in physical health outcomes.
Underlying drivers
Several structural and lifestyle factors are contributing to these trends. Rising obesity rates, increasingly sedentary behaviours, poor dietary habits, and high levels of screen time are all identified. These physical health risks intersect with mental health challenges to create compounding effects that can accelerate illness and disability.
As mentioned, Gen Z has come of age during a period marked by economic instability, climate anxiety and digital saturation where 24-hour news cycles can exacerbate stress. For young workers with limited job security and benefits literacy this becomes more wellness-challenging.
Workplace implications
Higher rates of illness and disability can translate into increased absenteeism, greater turnover rates, and additional benefits costs.
As Gen Z becomes the backbone of the Canadian workforce, employers face a critical responsibility (or opportunity) to adapt and invest pro-actively in employee well-being.
Employers must also foster psychologically safe workplaces, normalize conversations about mental health, and benefit literacy while providing flexibility and accommodations that recognize fluctuating needs, dynamic disabilities and ongoing mental and physical health and eldercare needs.
Building resilience
Supporting Gen Z is not merely a short-term workforce strategy; it is a long-term investment in Canada’s social and economic health. As Marie-Chantal Côté, Senior Vice-President of Sun Life Health, notes, this generation needs more than financial compensation. They require holistic support systems that acknowledge the realities of modern life and prioritize sustainable well-being.
Clare Hurley Morrison project assistant with the Canadian Abilities Foundation.
Photo: Lia Bekyan
