A generational divide over workplace burnout appears to be driven less by work intensity and more by declining expectations for career rewards, according to business author and New York University professor Suzy Welch. The 66-year-old Portland native earned her MBA as a Baker Scholar from Harvard Business School and spent seven years as a management consultant at Bain & Co. before joining Harvard Business Review in 2001, ultimately serving as editor-in-chief. On the July 24 episode of the Masters of Scale podcast, Welch argued that younger workers face schedules just as demanding as those of past generations but lack the core belief that hard work leads to meaningful advancement.
Welch shared that this insight came from a conversation with a 25-year-old freelance worker who asked her to create more content about burnout among young people because her friends were “just so burnt out.” When Welch explained that she used to work “seven days a week” at that age and loved it—and would have done more if possible—the young woman responded with a striking point: “But you had hope.”
“And I did have hope. We all did have hope,” Welch told Masters of Scale host Jeff Berman. “We believed that if if you worked hard you were rewarded for it. And so this is the disconnect.”
Welch’s observations are backed by extensive research showing unprecedented levels of workplace stress among younger generations, leading to missed work due to physical and mental tolls. A 2024 Gallup poll found just 31% of staffers under 35 say they’re “thriving,” while roughly 22% report feeling lonely.
“I think the distance between people is greater than it ever has been before,” Jim Harter, Gallup’s chief scientist of workplace and wellbeing, told Fortune. “When people become more distant physically, you become more mentally distant. That’s what’s happened with younger workers.”
Millennials are particularly affected. About 66% report moderate or high levels of burnout, according to a recent Aflac report. “One possible explanation for the higher levels of burnout among millennials could be their unique career pressures and expectations,” the report noted, pointing to “more demanding work environments than other generations, defined by constant connectivity, high performance expectations and a competitive job market.” Millennials also belong to the “sandwich generation,” caring for both children and aging parents. According to a Principal Financial report, over 60% of workers balancing both responsibilities worry about burnout.
The burnout crisis is compounded by young people navigating multiple global crises simultaneously: climate change, political instability, lingering effects of the COVID-19 pandemic, economic uncertainty, and conflicts like the Russia-Ukraine war. Research links pandemic- and climate-related distress to increased depression, anxiety, and reduced quality of life, while war-related stress correlates with higher anxiety. Harvard researchers note that nearly half (45%) of young adults aged 18 to 25 believe their mental health is harmed by a general “sense that things are falling apart.”
This sense of powerlessness—to influence climate change, address political instability, or earn enough to support a family—has eroded trust in institutions. Unlike baby boomers who relied on institutions to achieve financial security and stability, younger generations view them as cumbersome, hierarchical, and unequal. When combined with the economic realities Welch identifies—where hard work no longer guarantees advancement—this helps explain why over 50% of young people fear they will be poorer than their parents, according to Leger’s annual Youth Study.
Unlike previous generations who could reasonably expect homeownership and financial security from steady employment, younger workers face structural barriers reshaping career prospects.
“Gen Z thinks, ‘Yeah, I watched what happened to my parents’ career and I watched what happened to my older sister’s career and they worked very hard and they still got laid off,’” Welch said on the podcast.
Student debt is a major factor, with Gen Z paying an average of $526 per month—nearly double the overall average of $284, according to Empower. Housing costs amplify these pressures, having increased 121% from 1960 to 2017 while median household income rose only 29%. Today, 87% of Gen Z and 62% of millennials cannot afford to buy homes.
Employment challenges start immediately after graduation. About 58% of last year’s graduates are still seeking full-time work, compared to 25% of previous generations. Only 12% of Gen Z secure full-time employment by graduation, versus 40% for earlier cohorts. Those who do work earn an average of $68,400 annually while carrying roughly $94,000 in personal debt, according to Fortune.
The generational divide has significant economic consequences, with workplace burnout costing businesses $322 billion annually in lost productivity, according to Gallup, and generating healthcare costs of $125 billion to $190 billion. As Gen Z’s role in the workforce continues to expand, Welch’s insight about hope provides a vital lens for understanding why traditional approaches to workplace stress may not suffice for younger workers in the U.S.
You can watch the full Masters of Scale episode featuring Welch below:
