Gen Z Mental Health Crisis Explodes: Over Half of Disability Claims Tied to Mental Disorders

A bombshell new report from Sun Life reveals a staggering mental health crisis gripping Generation Z. Over half of all Gen Z long-term disability claims are now linked to mental health disorders, signaling an urgent and unprecedented challenge for society and workplaces. This figure dramatically outpaces the 40 percent seen across the entire insured population.

For young women in Gen Z, the situation is even more dire. A shocking over 60 percent of their disability claims are rooted in mental health issues. Antidepressant use among this generation has surged, with claims growing at twice the rate of other plan members between 2021 and 2024. Even more notably, antidepressant use among Gen Z men alone has risen by over 50 percent in that same period.

Gen Z on the Brink: A Stark Reality

Generation Z, born between 1997 and 2012, is facing immense pressure. The Sun Life report, drawing on data from over 20,000 employers and three million benefit plan members, paints a stark picture of a generation coming of age amidst unprecedented stressors.

"This generation is coming of age in a world shaped by economic uncertainty, climate anxiety and digital overload," states Marie-Chantal Côté, senior vice-president of Sun Life Health. This confluence of factors is creating a mental health storm for younger Canadians.

• 50%+ of Gen Z long-term disability claims are mental health related.

• 60%+ for Gen Z women specifically.

• Antidepressant claims for Gen Z grew twice as fast.

• Gen Z men are seeking therapy more than ever before.

The report warns that these trends will have profound impacts on Canadian workplaces. By 2030, Gen Z is expected to be the dominant workforce. Their mental and physical health challenges could significantly affect productivity and overall economic resilience. Beyond mental health, Gen Z also shows significantly higher rates of physical health concerns, with chronic disease claims growth two to three times higher than older cohorts.

Workplace Under Siege: Mental Health First Aid Gap

The strain on mental health isn't confined to a single generation; it's reshaping the very fabric of the modern workplace. A new report from St John Ambulance, published today, highlights rising mental health risks in contemporary work environments. Hybrid schedules, remote setups, and co-working spaces are here to stay, but traditional risk management frameworks are lagging.

Mental health risks like isolation, anxiety, and stress are sharply increasing. Despite widespread recognition of the issue, mental health first aid is often not given equal priority to physical first aid. An alarming 90 percent of people believe trained mental health first aiders reduce absenteeism. Yet, many workplaces are still failing to prioritize mental wellbeing. This oversight endangers individual wellbeing and can severely impact team and organizational performance.

Funding Chaos Rocks US Mental Health Services

Across the border, mental health services in the United States face severe instability. Nevada's mental health and recovery network experienced a "federal funding fiasco" this month. Millions in crucial grants were abruptly wiped out, then just as quickly restored. This sudden whiplash has left providers in a precarious state, unsure if funding will vanish again.

Advocates are sounding the alarm. "These abrupt and unjustified cuts will immediately disrupt suicide prevention efforts... putting an unknown number of lives at stake," warns Gillison, whose full affiliation was not detailed, but is cited within the context of a mental health advocacy group. Gillison powerfully states, "These aren't just numbers on paper. These are decisions that have real and harmful consequences for millions of people and communities around the country."

With Nevada ranking last in the nation for mental health care access and overdose deaths still climbing, even brief funding chaos could prove deadly. The uncertainty undermines vital programs focused on suicide prevention, family support, and overdose intervention.

Economic Strain Fuels Canadian Anxiety

Back in Canada, the economic squeeze is directly impacting mental wellbeing. Rising costs for everyday essentials, from groceries to housing, are fueling widespread anxiety. This financial stress creates a pervasive sense of insecurity for many Canadians.

Mental health expert Dr. Calissa Ngozi explains the dire consequences. She states that "our mental health is the one that is paying the bill. And a stress a stressed brain can't thrive." Dr. Ngozi highlights a concerning trend, noting that "we're normalizing anxiety as adulting, but that's not right." People are struggling to balance basic needs with quality of life.

Nature's Prescription: A Glimmer of Hope for Youth

Amidst these challenges, innovative solutions are emerging. In Cornwall, UK, the "CAMHS Goes Wild!" project has received significant funding. An impressive £150,000 has been awarded to offer nature-based lifestyle medicine interventions for young people aged 14 to 17. This initiative, one of six across the UK to share £825,000 from NHS Charities Together, aims to support children and young people with mental health problems. It specifically targets those often feeling unheard or overlooked while waiting for care.

Molly Jenkins, Clinical Associate Psychologist for Mid Cornwall CAMHS, expressed excitement: "We're so pleased to be awarded this funding." This program will include evidence-based strategies for movement, sleep, nutrition, and stress reduction. Ellie Orton OBE, Chief Executive at NHS Charities Together, emphasized the importance of equitable care: "A child's health shouldn't be determined by where they're born."

Breaking Cycles: Indigenous Healing

Addressing generational trauma is also a critical aspect of mental health awareness. A poignant personal account from CBC First Person highlights the ongoing impact of residential schools in Canada. A father shares his experience of breaking cycles of trauma by prioritizing listening and gentleness with his son.

This narrative underscores the importance of acknowledging historical injustices and providing ongoing support. For those affected, a national 24-hour Indian Residential School Crisis Line (1-866-925-4419) offers emotional and crisis referral services. Additionally, the Hope for Wellness hotline (1-855-242-3310) provides mental health counseling and crisis support around the clock.

What's Next

The exploding mental health crisis among Gen Z demands immediate and sustained action. Employers must re-evaluate workplace support systems, prioritizing mental health first aid and flexible arrangements. Governments must ensure stable, adequate funding for mental health services, avoiding dangerous disruptions. Healthcare providers need to expand accessible, diverse treatment options, including nature-based therapies. Society as a whole must foster open conversations, reduce stigma, and empower individuals to seek help. Ignoring these trends will have severe, lasting consequences for future generations.