Research conducted in 2024 indicates that many members of Generation Z are declining job offers due to the financial burdens associated with starting new positions. Despite successfully navigating multiple interview stages and securing job offers, this demographic finds the related costs prohibitive.
A survey targeting over 2,000 individuals aged 16 to 25 in the UK, conducted for the Prince’s Trust annual NatWest Youth Index 2024, reveals that the rising cost of living is causing anxiety among young people, hindering their career aspirations. Expenses such as purchasing appropriate work attire and travel costs contribute significantly, with one in ten unemployed Gen Z individuals having to reject job offers due to these financial demands.
Confidence in managing finances has reached its lowest point since the index began tracking the well-being of UK youth 15 years ago. Over half of those surveyed express concerns about never achieving financial stability, and more than a third feel stressed by the mere thought of managing finances.
The issue is particularly pronounced among young women, with 60% fearing that increased living costs will block their path to financial security, and half worried about their ability to support a family. In comparison, approximately 45% of young men share these concerns.
Faced with these challenges, many are seeking financial advice on TikTok. The survey highlights a doubling since 2022 in the number of 16-to-25-year-olds using the platform for guidance on budgeting practices. The Prince’s Trust warns that the current economic conditions are having “drastic consequences” on young people’s confidence, well-being, and future aspirations, especially impacting those from economically disadvantaged backgrounds.
Prince’s Trust UK Chief Executive Jonathan Townsend emphasizes the perilous cycle where mental health issues and employment difficulties mutually worsen, potentially becoming an entrenched issue for this generation unless immediate action is taken.
Mental health challenges represent a significant barrier to career goals for many young individuals. Approximately 40% of respondents report struggling with mental health, and a third worry it will impede their professional aspirations. Several young people have already experienced work or school absences due to mental health issues, with 18% feeling too overwhelmed to apply for jobs, and 12% unable to attend interviews. Notably, one in ten youths from poorer backgrounds have left jobs due to mental health concerns.
Additional research indicates that even when young workers are present in the workplace, many are mentally disengaged, nearly equivalent to losing a day’s productivity each week—an issue impacting about 50 workdays annually.
Despite the challenges detailed in the research, Townsend describes the findings as offering a “window of hope.” Generation Z has articulated their needs from employers: support in securing work experience, guidance on writing CVs, interview conduct, and job-specific skill development.
Townsend concludes by noting the determination of young people to reach their goals, underscoring the need for practical support and guidance to navigate the rapidly evolving job market.
