The Gen Z Crisis

Generation Z — born between 1997 and 2012 — are preparing for college, entering the workforce, and are at the beginning of their professional and educational careers. Throw in a global pandemic, geopolitical instability, and a recession and it’s no wonder Gen Z is struggling to find their footing.

Recession anxiety on the rise

I’m not the first to report this, but concerns of recession are becoming more real by the day and Gen Z faces unprecedented financial pressures that amplify recession fear. Economic growth contracted at a rate of 0.3% in the first quarter of 2025, while consumer spending declined by nearly $30 billion in May, nearly $30 billion less in May than in April, creating tangible economic uncertainty. J.P. Morgan now sees a 40% probability that the U.S./global economy will enter a recession by the end of 2025, down from earlier 60% estimates but there is still a significant risk.

Gen Z’s unique financial situation makes a recession all the more concerning. According to a Talker poll, Gen Z carries the highest average personal debt, at $94,101 — far above millennials ($59,181) and Gen X ($53,255). Student debt is a major factor: Over a third (36%) of older Gen Zers had student debt as of June 2022, compared to 31% of millennials at the same age. Housing costs add another layer of pressure, with the average proportion of a…