A new report reveals Gen Z in Australia is more purpose-driven and emotionally aware than ever—even as rising concerns over climate change, AI, and political division take a significant toll on their wellbeing.
At a Glance
- The Gen Z Wellbeing Index 2025 found increases in purpose, optimism, and hobby engagement among young Australians
- Concern about political division doubled to 44%, while AI anxiety rose from 24% to 42%
- OCD diagnoses and stress linked to career and finances continue to rise
- Vaping rates have halved, and more young people are choosing to abstain from alcohol
- Offline coping methods like volunteering and sports now outweigh digital distractions
Growing Purpose Meets Rising Anxiety
According to the Gen Z Wellbeing Index 2025, published by Year13 and Scape, young Australians are showing unprecedented levels of purpose and optimism—but these gains are accompanied by new emotional stressors. Political division, once a background concern, is now cited as a top stressor by 44% of Gen Z respondents, and anxiety about artificial intelligence jumped to 42%, nearly doubling since last year.
This duality—growth in self-awareness and rising global pressure—captures the generational mood: socially conscious, highly driven, yet vulnerable to forces beyond their control.
Mental Health Strains and Coping Strategies
The report also notes an increase in OCD diagnoses, with financial insecurity and career uncertainty cited as compounding factors. Yet amid this strain, Gen Z is turning away from escapism and toward healthier routines. Vaping has declined by nearly 50%, and more young people are abstaining from alcohol. Coping strategies now include activities like netball, swimming, music, and volunteering—suggesting a conscious pivot from screen-based distraction to real-world self-regulation.
Implications for Support and Education
This shift calls for institutional adaptation. As Year13 co-founder Will Stubley explained in the New York Post feature, Gen Z faces a rapidly changing labor market shaped by AI, high housing costs, and evolving education-to-career pipelines. Addressing these gaps will require integrated policy—mental-health supports, career navigation tools, and purpose-aligned programs that engage young adults meaningfully.
Ultimately, Gen Z is not retreating—they’re adapting. But their future depends on whether society can match their urgency with systems that support, rather than stall, their generational evolution.
