New research shows that mental health difficulties among young people have doubled in the past decade. Dr Dominic Kelly, Senior Research Fellow at UCL and Dr Claire Tyler, ISE Head of Insights, explore the challenge, and how employers can support the wellbeing and success of early career hires.
The transition from education into employment has always been a significant milestone. Today, however, new hires are making that transition amid rising mental health challenges, financial pressures and uncertainty about the future of work.
Recent research from the Centre for Longitudinal Studies at UCL paints a concerning picture of mental wellbeing among young adults as well as particular challenges as they transition to adulthood.
It also highlights important inequalities in mental health outcomes, with women, young people from socioeconomically disadvantaged backgrounds and members of sexual minority groups reporting significantly higher levels of mental health difficulties.
Key findings
- More than one in five (22%) Gen Z young adults in England report having a longstanding mental health condition in their early 20s, roughly double the rate reported by millennials at a similar age ten years earlier.
- Across the UK, more than a quarter of Gen Z (28%) report high levels of anxiety and a fifth (21%) experience significant levels of depressive symptoms at age 23.
- Women are more likely to experience poor mental health, with 25% reporting high psychological distress compared with 17% of men. More than a quarter (28%) report a longstanding mental health condition, compared with 15% of men.
- Young adults from socioeconomically disadvantaged backgrounds face greater challenges, with 28% reporting high psychological distress, compared with 19% of their more advantaged peers.
- Sexual minority young adults are particularly affected, with nearly half (46%) reporting a longstanding mental health condition, compared with 17% of heterosexual young adults.
Challenging transition to adulthood
The findings also suggest that mental health challenges intensify during the transition to adulthood.
The proportion of young people reporting a longstanding mental health condition rises from 8% at age 17 to 22% at age 23, highlighting the difficulties many experience as they move from education into independent adult life.
Related research further shows that behavioural and mental health conditions significantly increase the probability of being NEET at age 23.
These wider societal trends are increasingly being reflected in the workplace. Findings from the ISE Development Survey 2026 show that mental health and wellbeing are becoming a growing focus for employers supporting graduates and school and college leavers.
While graduate and school leaver retention remains relatively stable as organisations continue to retain around three-quarters of new hires after three years, employers are looking ahead with caution.
Nearly two in five (38%) are concerned about future retention and whether line managers have the skills and confidence needed to support new hires effectively amid rising mental health and wellbeing challenges.
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Anxiety is rising among new hires
More than half of employers who responded to the ISE Development Survey 2026 reported an increase in anxiety among new hires. Around a third of employers also reported greater financial pressures and career uncertainty among new hires, while one in five reported increased perfectionism and burnout.
These findings reflect the professional environment many young people are entering. Rapid technological change, economic uncertainty and evolving career pathways can intensify pressures at a life stage already characterised by significant transitions and important decisions.
As jobs continue to evolve and employees are increasingly expected to navigate ambiguity and change, helping young people to develop adaptability alongside resilience is becoming essential, not only for wellbeing, but also for long-term career success.
Indeed, adaptability is one of the most sought-after attributes in early career hires, yet it is also the largest work-readiness gap identified by employers this year. More than a third (35%) rate graduates below expectations for adaptability, while 31% say the same of school and college leavers.
Employers are investing more in wellbeing support
Employers are already responding to changing wellbeing needs. Nearly a third (31%) increased the amount of induction time dedicated to mental health and wellbeing this year, recognising the growing importance of the issue.
Mental health and wellbeing now account for around 10% of content delivered through induction, onboarding and development programmes, and three-quarters (76%) of employers provide dedicated mental health support for early career hires.
Yet providing support is only part of the challenge. Although mental health support is widely available, only 64% of employers believe it is effective. This suggests that many organisations are still refining their approach and exploring ways to ensure support reaches those who need it most.
The challenge may not be the availability of support, but accessibility and impact. Traditional wellbeing initiatives do not always resonate with early career employees who may be reluctant to seek help, unsure where to access support, or facing challenges that require more tailored interventions.
What can employers do?
There are several practical steps employers can take to help early career talent thrive:
- Equip line managers to support wellbeing. Managers are often the first point of contact for new hires. Training can help them recognise signs of distress, have supportive conversations and direct employees to appropriate support.
- Embed wellbeing throughout the employee experience. Rather than focusing solely on induction, consider how wellbeing can be reinforced through onboarding, career development, performance conversations and regular check-ins.
- Build confidence, resilience and adaptability. As roles continue to evolve, helping new hires develop the skills to navigate change, uncertainty and setbacks can support both wellbeing and long-term performance.
- Create opportunities for connection and belonging. Strong social networks can help reduce feelings of isolation and provide valuable peer support, particularly during the transition from education to work.
- Take a targeted rather than one-size-fits-all approach. Given the evidence of the higher levels of mental distress seen in females, the socioeconomically disadvantaged and sexual minority groups, mental health challenges are not experienced equally across all groups. Tailoring support to recognise different experiences and needs can help ensure employees access the support that is most relevant to them.
- Reduce career uncertainty. Clear communication about expectations, development opportunities and potential career pathways can help build confidence and give new hires a greater sense of direction and control.
- Recognise financial pressures. With many employers reporting increased financial concerns among new hires, providing practical support and signposting to available resources can help alleviate stress.
- Measure impact, not just provision. Offering support does not automatically mean it is having the desired impact. Employers should regularly evaluate wellbeing initiatives and gather feedback from early career employees to understand what is working and where improvements are needed.
Mental wellbeing is increasingly becoming a core part of the early careers’ agenda. As employers face changing workforce expectations, supporting the wellbeing of new hires is becoming more closely linked to employee engagement, development and long-term retention.
The evidence suggests that today's young people are entering employment with higher levels of mental health need than previous generations. Organisations that create supportive environments, equip managers with the right skills and help employees build resilience, confidence and adaptability will be best placed to attract, develop and retain the next generation of talent.
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