Gen Z’s workplace distrust is hardening into withdrawal

Gen Z’s viral “stare” is being recast by Fortune as a sign of broader economic and social withdrawal, rather than just workplace awkwardness. The issue carries weight for employers because it comes as entry-level hiring has weakened and many young workers say they have little faith that work will lead to security.

Fortune business editor Nick Lichtenberg wrote that the online shorthand once used to describe young adults freezing in service or workplace interactions now looks, in some cases, like a more fixed rejection of institutions. He tied that posture to economic shocks that shaped Gen Z before many of its members entered the labor market.

Fortune reported that the oldest members of Gen Z were children during the 2008-2010 foreclosure crisis, when 3.8 million American families were displaced at the peak. The same cohort later reached adulthood amid higher housing and transportation costs, with starter home prices up 87% since 2019 and the average new car price at $49,000, up 27% from 2020, according to figures cited by Fortune.

Hiring has added to the strain. A SignalFire analysis of hiring data from 2019 to 2024 found that entry-level hiring across sectors fell by more than half, even as hiring for more experienced workers recovered, Fortune reported.

The financial mood is bleak by several measures cited by Fortune. More than 70% of Gen Z respondents described “survival spending” as their norm and said wealth felt out of reach; 57% said their generation had been set up to fail financially; and 32% said the American Dream was still attainable.

Fortune quoted Kaelyn, a 24-year-old administrator at a high-volume tax firm, who said she and her partner skipped college, earned GEDs, saved while living with family and bought a home under what she called “extreme caveats.” She told Fortune that young people she knows were “jaded about employment before we ever entered the workforce” and said Gen Z is angry rather than lazy or apathetic.

The World Economic Forum has described a related mood as “financial nihilism,” according to Fortune: a belief that conventional financial discipline no longer pays off, pushing some young people toward high-risk bets such as crypto, prediction markets or early use of retirement savings.

Academic research cited by Fortune points to a broader mental health shift among younger people. Dartmouth economist David Blanchflower and University College London’s Alex Bryson have documented what they call the disappearance of the long-observed U-shaped pattern of well-being, in which happiness dipped in middle age and rose later in life. Their work found that younger people are now the least happy cohort globally, with later working papers placing the decline among young workers and tracing its start to 2010.

Fortune also linked the pattern to psychologist James Marcia’s concept of “defensive foreclosure,” developed from Erik Erikson’s work on identity. The term describes a person closing off identity exploration early as a way to manage anxiety, adopting refusal as a fixed stance before testing other options.

Employers are reporting friction with the cohort. Fortune cited data showing that 60% of companies reported dismissing Gen Z hires within their first few months in 2026, with employers pointing to motivation issues. Fortune also reported that more than half of Gen Z workers say their social skills have declined.

The article drew a contrast with another Gen Z voice, Kenzie, a corrections officer who told Fortune that belonging at work increased her effort. She said that when she felt part of a team and believed co-workers had her back, she found reasons to keep going during difficult periods.

Fortune reported that some economic indicators are improving for the cohort, including Gen Z homeownership rates tracking ahead of millennials at the same age and a projected $84 trillion wealth transfer already underway. Lichtenberg argued, however, that years of distrust may keep some young adults from taking advantage of openings as they appear.

This story draws on original reporting from Fortune.