Bold shift in the workplace: Gen Z’s mental health days could be quietly costing careers.
The so-called “mental health days” taken by Gen Z are not just personal pauses; they’re shaping millions of lost workdays nationwide and, in some cases, threatening job security. A Macquarie University study estimates about 26 million days of work per year are missed by Australians aged 18–29, placing this group at the top tier of workplace stress alongside women and workers in Victoria. The report, titled Workforce Psychological Distress and Absenteeism in Australia, shows young employees are roughly 1.5 times more likely to experience distress than those aged 50–64. The data draws on the Australian Bureau of Statistics National Health Survey for 2020 and 2021.
Lead author Kristy Burns, a Macquarie University lecturer, explains that many young workers hold casual positions with limited job security and elevated financial pressures. She notes that, beyond insecurity, younger employees often face more workplace conflict, less control over their tasks, and higher exposure to bullying—factors closely linked with poorer mental health.
Burns emphasizes that employers should not use mental health concerns as a gatekeeping factor against hiring young people. “Young people contribute meaningfully to the workforce, and employment itself has mental health benefits,” she says, underscoring society’s interest in viewing youth as valuable contributors to the economy.
The findings point to a broader trend: psychological distress in the population has risen over the past two decades and likely worsened during the Covid-19 era, Burns told The Advertiser. The economic impact is substantial, with stress-related costs estimated at nearly $17 billion annually. Those most affected by distress miss more than 20 workdays per year—roughly a full additional month when compared with less-stressed peers.
Distress also correlates with safety concerns, contributing to about 10% of serious injury claims and affecting 18% of workers overall. Within industries, administrative and clerical workers top the distress list at 25.9%, followed by financial and insurance services at 23%. Mining appears comparatively less stressful, at 8.5%.
Overall, an estimated 56 million days off due to distress were recorded, with younger workers accounting for 26 million of those days despite representing a smaller share of the workforce. Sectors hit hardest by excess leave include healthcare, education and training, accommodation and food services, and retail. Gender differences are evident too: 21.9% of women report distress versus 14.8% of men. Regional patterns show Victoria bearing the highest stress rates (22%), with the ACT and NT close behind (19%), and Western Australia recording the lowest rate (14%).
When it comes to lost productivity, Victoria leads in average annual lost days at 5.7 days, while Tasmania follows at 5.19. The ACT records the fewest days off, at 3.35 on average.
These findings align with earlier work by News Corp’s Growth Distillery and Medibank, which reported burnout affects about 34% of Australians. Among those experiencing burnout, Gen Z accounted for 45% and Millennials 41%, with respondents citing insufficient downtime and daily feelings of being overwhelmed by work, family duties, and social expectations.
The Maslach Burnout Inventory (MBI) remains the standard gauge for burnout, encompassing exhaustion, depersonalization (a loss of empathy or cynicism toward one’s work), and diminished professional efficacy.
Gen Z mental health advocate Milly Bannister of ALLKND argues that labeling burnout as merely “tired from too much work” oversimplifies the issue. She describes burnout as an identity crisis when work erodes core values and the ability to connect with others. For Bannister, burnout isn’t solely about workload; it’s about misalignment—when work that once energized becomes draining and unfulfilling.
