The Rising Cost of Living Is Becoming a Mental Health Crisis for Young Employees

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Modern Health’s new workplace report finds 75% blame financial stress for fueling burnout and hurting productivity, 79% sacrifice mental health to meet work demands and 96% want preventative mental health support

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SAN FRANCISCO — A new report from Modern Health, a global premium mental health solution provider, reveals a troubling picture of how Gen Z and Millennial employees are faring: only 16% rate their current mental health as excellent, with the vast majority grappling with anxiety fueled by economic uncertainty and financial stress that is taxing work productivity and personal time. In a survey of 1,000 American professionals aged 18 to 44, 79% not only feel anxious from economic uncertainty, concerningly they are also sacrificing their mental health to meet work demands.

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“Our latest report reveals that many of today’s young workers are quietly pushing through mounting mental health challenges just to keep up at work,” said Matt Levin, CEO of Modern Health. “They’re not getting the support they need, which should be a wake-up call for employers. We can’t afford to wait until someone is in crisis to act—we need to meet people earlier, with care that’s proactive, adaptive, and designed to support the mental health of entire workforce populations.”

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Anxiety is the New Cost of Living

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Financial anxiety and economic uncertainty are a key driver of mental health challenges for today’s employees. Three in four say financial stress is fueling their burnout and hurting their productivity, 76% say financial anxiety is disrupting their sleep, mood and energy and directly impacting their productivity at work, and 68% say financial anxiety regularly interferes with their ability to do their jobs effectively.

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Financial and economic concerns are also dissuading employees from taking positive professional and personal actions in their lives. A resounding 74% of employees say they’ve delayed taking time off work due to financial concerns, while more than half (55%) have postponed seeking mental health care for the same reason. Even more concerning, 69% say they’re staying in toxic job environments or avoiding necessary career changes due to economic fears.

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Repercussions of Hustle Culture

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The report reveals a troubling level of skepticism among younger employees when it comes to their employers’ commitment to mental health. A striking 71% believe their employer uses mental health initiatives to mask a toxic culture, while 61% describe their company culture as flawed. Over half (53%) say their employer encourages self-care but makes it nearly impossible to practice.

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This erosion of trust is potentially fueling an unhealthy pace of work and worsening mental health in the workplace. A high majority (79%) say they routinely sacrifice their mental health to keep up with work demands, and 77% admit to checking emails during PTO, or avoiding time off altogether for fear of falling behind. Even when employees do take time off, 68% report feeling guilty, worrying it will be viewed as unproductive, or admit feeling pressure to “power through.” Just 21% of employees say they can truly unplug without pressure from work. Alarmingly, 77% say they’ve worked through a mental health crisis because they felt they couldn’t take a break.

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“The disconnect employees feel between their mental health needs and the realities of the workplace is a signal—not of failure, but of opportunity,” said Dr. Jessica Watrous, Senior Director of Clinical Research & Scientific Affairs at Modern Health. “Many employers are doing their best to support well-being, but employees are still feeling pressure to be ‘always on,’ even when it impacts their health. By creating cultures that enable people to truly unplug and ask for help without guilt, organizations can build the kind of trust and resilience that helps both people and businesses thrive—especially in today’s unpredictable environment.”

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The Mental Health Care Gap and the High Cost of Inaction

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One of the most urgent challenges in workplace mental health today is the gap between when employees need support and when they actually receive it. The desire for early access to resources—before one is in crisis—is widespread, with a staggering 96% wanting access to preventative mental health support as a workplace benefit and 94% stating that they believe it would make a positive difference in their work lives. Spotlighting the growing care gap, 58% of employees admit they’ve waited until symptoms became unmanageable before getting help.

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The incentive for employers to close this gap is clear. Employees overwhelmingly believe access to preventative support would make a meaningful difference: 52% say they would feel more positive about their company, 51% say it would boost their productivity, and 49% believe it would help them avoid burnout altogether. And it’s not just employees—99% of Gen Z and Millennial managers agree that workforce mental health programs positively impact overall business goals with almost half (49%) stating they directly influence business performance and results.

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For companies that fail to meet these needs, the stakes are high. More than half (52%) of respondents say they’ve considered quitting their job to protect their mental health—a clear signal that action is no longer optional. Worryingly, 1 in 7 young workers are actively searching for a new job for this very reason.

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“It’s not surprising to hear that younger employees want mental health support before they’re in crisis—it’s something we see every day,” said Alison Borland, Modern Health’s Chief People and Strategy Officer. “For many, caring for their mental health is part of how they stay balanced and show up at work and in life—and they expect their employer to support that. Mental health can’t just be treated as a problem to fix after it escalates. It needs to be a strategic priority, which means offering proactive, personalized support that evolves with people’s needs. At Modern Health, we call this adaptive care—and it’s not only the right thing to do for employees, it’s a proven way to retain top talent and reduce healthcare costs.”