This article is part of a recurring series highlighting recent talent mobility industry reports. If you would like the WERC editorial team to consider covering a specific industry report, email mobility@talenteverywhere.org.
Deloitte’s 2025 Global Gen Z and Millennial Survey, based on the views of more than 23,000 respondents across 44 countries, provides a comprehensive look at two generations that will make up nearly three-quarters of the global workforce by 2030. The report offers insight into how Gen Z and millennials are navigating financial pressures, technological change, workplace expectations, and environmental challenges. While their circumstances differ, both generations are reshaping ideas of work, leadership, and purpose, demanding change from employers and institutions alike.
A New Approach to Learning and Leadership
Continuous learning has become a defining priority. Nearly 70% of Gen Z respondents say they develop new skills weekly, compared with 59% of millennials. Both groups rank learning and development as one of the top reasons they choose to stay with an employer. At the same time, many are dissatisfied with managers who focus narrowly on task supervision instead of providing mentorship, motivation, and support for work-life balance.
Leadership aspirations are shifting. Only 6% of Gen Z respondents identify reaching senior leadership as their primary career goal. Instead, they value growth, flexibility, and balance. This trend suggests a potential leadership pipeline gap for organizations that rely on traditional executive hierarchies. Deloitte’s findings encourage employers to rethink how they cultivate leaders by investing in mentorship programs and skills training, while empowering managers to act as coaches rather than overseers.
Questioning the Value of Higher Education
Higher education is losing its universal appeal. Nearly one-third of both generations report not pursuing a university degree. The main barriers are the high cost of tuition, cited by around 40% of respondents, and concerns that traditional education fails to provide practical, job-ready skills.
Vocational training, apprenticeships, and trades are gaining credibility as viable alternatives. About a quarter of respondents highlight these as more useful than traditional degree paths. Others look to self-directed learning, entrepreneurial pursuits, or online platforms for skill development. Employers can adapt by adjusting hiring practices to value skills and experience over degrees, offering apprenticeship opportunities, and building stronger links between academia and workplace needs.
Generative AI: Promise and Unease
Generative AI (GenAI) is rapidly reshaping work, with 57% of Gen Zs and 56% of millennials using AI tools in their jobs. They employ AI for data analysis, content generation, project management, and risk assessments. While respondents recognize its potential to enhance productivity and creativity, many also fear job displacement, particularly at the entry level, and widening inequality between workers with and without AI skills.
Despite widespread adoption, more than a quarter of respondents never use GenAI, often because of limited access or training. Still, three-quarters expect AI to significantly alter their roles within a year. Deloitte stresses the importance of building trust by teaching AI fluency and providing technical as well as soft skills training, including empathy, critical thinking, and leadership.
Happiness Built on More Than Just Money
The survey identifies a “trifecta” of happiness grounded in financial security, meaningful work, and personal well-being. Around 60% of financially secure Gen Zs and 68% of financially secure millennials describe themselves as happy, compared to only 30% of those who feel financially insecure.
Meaning plays an equally crucial role, with 89% of Gen Zs and 92% of millennials calling it essential in their careers. Well-being strengthens this cycle, as individuals with good mental health are more likely to find purpose and report happiness. Organizations that balance these three elements are positioned to improve engagement and retention while cultivating more satisfied employees.
Financial Pressures and the Cost-of-Living Squeeze
For the fourth consecutive year, cost of living ranks as the top concern for both generations, cited by 39% of Gen Zs and 42% of millennials. Nearly half report feeling financially insecure, and one-third say they struggle to cover basic expenses each month. Concerns about long-term security are also widespread, with about 40% doubting they will ever retire comfortably.
Many turn to side jobs for additional income, with around one-third holding multiple roles. While financial necessity drives most of this activity, some pursue side jobs to develop skills or work on passion projects. Millennials in particular describe their wealth as “phantom wealth,” tied up in housing or other illiquid assets that leave them feeling strapped despite owning property. Employers can respond by offering competitive pay, transparent benefits, and financial education.
Purpose as a Cornerstone of Work
Purpose has become central to how younger generations assess their careers. More than half of respondents rank meaningful work as very important when evaluating employers, and for a significant portion, their jobs form a key part of their personal identity. When jobs lack purpose, respondents seek meaning elsewhere through family, hobbies, or community engagement, etc., while prioritizing financial stability and work-life balance.
When employees feel their personal values align with their employer’s mission, they are more likely to act as brand advocates, reporting higher satisfaction with pay and benefits, stronger engagement, and better overall well-being. Embedding purpose into company culture is thus both a moral and strategic choice.
Mental Health and Workplace Stress
Mental well-being remains fragile across both generations. Only 52% of Gen Zs and 58% of millennials describe their mental health as good or very good. About 40% of Gen Zs and 34% of millennials feel stressed or anxious most of the time, and many cite their jobs as a major source of stress.
Long hours, lack of recognition, and toxic workplace cultures contribute to this strain. Respondents stress that surface-level wellness programs are insufficient; they want employers to address root causes of stress by promoting supportive managers, setting clearer boundaries around working hours, and offering tangible growth opportunities.
Environmental Anxiety and Action
Environmental issues weigh heavily on both generations. Around two-thirds of both Gen Zs and millennials report feeling anxious about climate change in the past month. Many have experienced extreme weather events firsthand, further intensifying concern. This anxiety influences their consumer choices, with most respondents willing to pay more for sustainable products.
Sustainability also plays a role in career decisions. About a quarter of respondents research a company’s environmental record before accepting a job, and many are making personal lifestyle changes, such as conserving water, buying electric vehicles, or installing sustainable home features. For organizations, demonstrating environmental responsibility is increasingly important for recruitment, retention, and brand reputation.
Redefining the Future of Work
The 2025 Deloitte survey paints a nuanced picture of Gen Z and millennials: generations shaped by financial stress, technological change, and a redefined sense of purpose. They aspire to meaningful work, financial security, and healthier work environments, while remaining anxious about global challenges such as climate change. They embrace technology yet demand safeguards, and they value leadership but resist outdated hierarchies.
For employers, the survey offers clear guidance. Companies must invest in skills development, rethink hiring standards, and build trust around AI. They must tackle the cost-of-living crisis with competitive pay and benefits, while embedding purpose and sustainability into organizational culture. Mental health must be addressed through structural change, not surface-level perks.
If organizations can respond to these challenges, they stand to benefit from a more engaged, motivated, and loyal workforce. Gen Z and millennials are not rejecting ambition; they are redefining success. The future of work will be shaped by their insistence on balance, purpose, and resilience—an evolution that may ultimately create workplaces better suited to the needs of people and the planet alike.