New data reveals younger workers are more likely to quit over mental health concerns, sparking employer fears.

New research has revealed that one in four young workers has considered quitting their job in the past year, with mental health concerns emerging as the most common reason for wanting to leave.

A survey conducted by PwC found that employees under 35—Millennials and Gen Zs—are significantly more likely than their older colleagues to exit the workforce due to stress, anxiety, and burnout.

The study, which surveyed more than 4,000 employees across 300 UK companies, also found that 10% of all workers have seriously considered taking an extended break from work. Across all age groups, 20% of employees have thought about quitting in the past year.

This trend is contributing to rising economic inactivity, where individuals are neither working nor actively seeking employment. Last year, this figure hit a record 9.4 million people, accounting for 22% of working-age adults.

At the same time, job vacancies in the UK have declined, with the Office for National Statistics (ONS) reporting a drop of 9,000 vacancies to 819,000 in the three months leading to January. While the unemployment rate remains at 4.4%, concerns persist about the accuracy of job market data due to recent survey overhauls.

The rise in workplace departures is worrying business leaders, with 90% of employers citing economic inactivity as a major concern. More than half of those surveyed reported an increase in employees leaving due to mental health challenges.

Marco Amitrano, senior partner at PwC UK, warned that businesses must focus on retaining workers rather than just bringing new ones in.

“Much of the current conversation focuses on how to get people outside the workforce back in. Equally important is stemming the flow leaving the workforce in the first place,” he said.

With mental health playing an increasing role in workplace decisions, companies may need to rethink their approach to employee well-being if they hope to retain younger workers and prevent further losses.