Invezz.com - A new study reveals a troubling paradox for Generation Z in the United Kingdom: even after successfully navigating the job application process, many young people are forced to decline employment opportunities due to the financial burden associated with starting work.
The Prince’s Trust annual NatWest (LON:NWG) Youth Index 2024, based on a survey of over 2,000 16-to-25-year-olds, paints a stark picture of how the cost of living crisis is impacting young people’s career prospects and overall well-being.
Expenses such as work attire and commuting costs are proving insurmountable for some, with one in 10 unemployed respondents reporting having to turn down job offers because of these financial hurdles.
The report also highlights a record low in financial confidence among young people in the 15 years since the index began tracking this metric. More than half expressed fears about achieving financial security, and over a third find merely thinking about their finances stressful.
These anxieties are particularly pronounced among young women, with 60% expressing concerns about the cost of living hindering their financial future and half worried about affording a family, compared to approximately 45% of young men sharing similar concerns.
Interestingly, an increasing number of young people are turning to social media platform TikTok for financial advice, with the number doubling since 2022.
The Prince’s Trust warns that these economic pressures are having “drastic consequences” on the confidence, well-being, and future aspirations of young people, particularly those from disadvantaged backgrounds, and contributing to a decline in mental health.
Jonathan Townsend, the UK chief executive of the Prince’s Trust, describes a concerning “trap” where unemployment and poor mental health reinforce each other, jeopardizing the prospects of this generation unless addressed urgently, according to a report in Fortune.
The report underscores the debilitating impact of mental health challenges, with 40% of respondents reporting such struggles and a third fearing these will impede their career goals.
Mental health issues are already affecting young people’s work lives, with one in five having missed school or work in the past year, 18% feeling unable to apply for jobs, and 12% avoiding interviews.
Notably, one in 10 young people from disadvantaged backgrounds left a job this year due to mental health difficulties.
This echoes separate research indicating that even when present at work, many young people are mentally absent, losing the equivalent of a day’s work each week.
Despite these challenges, Townsend sees a “window of hope” in the report’s findings.
Gen Z has clearly articulated how employers can provide crucial support, including work experience opportunities, CV and interview guidance, and job-specific skills training.
Townsend emphasizes the continued determination of young people to achieve their goals, highlighting the need for practical support and guidance to navigate the evolving challenges of the modern workplace.