A new Gallup survey finds that while Gen Z is, on the whole, happy, nearly half of respondents reported feeling anxious, particularly when comparing themselves to others, thinking about their finances, or understanding their purpose at work or school.

Gallup found that although 73% of Gen Z are either very or somewhat happy, those in their 20s are less happy than their younger teenage peers — 67% of those aged 21 to 23 reported being happy compared to 78% for those aged 15 to 17.

Gallup sampled 2,271 Gen Zers ages 12 through 26 at the end of November 2023.

Gen Z adults who have a postsecondary education, are married, and have kids, have happiness levels higher than their peers. For Gen Zers aged 18 to 26, 81% of those who are married are happy, compared to 68% for those who never married. 73% of bachelor’s degree holders are happy, compared to 59% of those with just a high school degree. That could signal a disconnect between two splintering groups of Gen Zers.

Nearly half of Gen Z said they don’t find their daily tasks “interesting, important, or motivating,” the report found, adding that Gen Z increasingly ties their sense of purpose to work and school.

The places where Gen Z finds purpose — school and work — are becoming more elusive for some as the rate of “disconnected youths” rises. Those are Americans between the ages of 18 to 24 who aren’t working and aren’t in school. Just six in 10 Gen Zers responded that they always or often feel their life has direction, with feelings of significance and purpose lower among older Gen Zers.

Since 1998, the share of disconnected youths in that age cohort has been on the rise. That comes as college enrollment rates fall with ballooning tuition and other costs, and Gen Z confronts a slightly tougher job market.

Even for those who reported being happy, just 60% said they do something interesting each day, while a similar percentage feels motivated to go to work or school. Those without postsecondary degrees consistently reported feeling unmotivated about going to school or work, with just under half saying what they do there is important. For those who are unhappy, these percentages drop to 28% and 31%, respectively. Nearly half said they have significant financial concerns.

In a separate study of nearly 19,000 adults released Wednesday, Gallup found that US employee engagement has dropped to its lowest level in over a decade. Just 30% of full- and part-time employees reported being engaged at work in the first quarter of 2024, which is 4.8 million fewer employees compared to the end of 2023, during which the rate was 33%.

This drop was most pronounced for Gen Z employees — down six percentage points from last quarter — who increasingly feel less connected to their company’s culture. Many employees who work exclusively in person but have the capacity to do their jobs remotely also reported feeling less engaged.

As BI previously reported, the challenges disconnected youths are facing are hindering them from saving for retirement and making bigger purchases down the road, blocking them from contributing to the economy. With the economic headwinds that young people are facing, along with pervasive feelings of loneliness and isolation, it’ll likely take significant change to improve Gen Z’s outlook on life.

Are you or were you a “disconnected youth,” or supporting one? Contact these reporters atnsheidlower@businessinsider.com, jkaplan@businessinsider.com, or asheffey@businessinsider.com.

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