Gen Z Boosts Mental Health Industry

The generation that grew up in a post 9/11 world is experiencing higher rates of reported mental health problems than any other generation before them, and it is likely to create a higher demand in the mental health industry for years to come.

According to a new report from data management firm Harmony Healthcare IT, a whopping 61 percent of Gen Z have been diagnosed with an anxiety disorder.

Gen Z encompasses adults aged 18 to 26. Following Millennials, much of Gen Z were just infants when September 11 unfolded and experienced the majority of this century's mass shootings while they were in school themselves.

The generation that is now being dubbed America's most anxious is more likely to seek therapy than any other generation before them.

Gen Z is 37 percent more likely to go to therapy or receive mental health treatment compared to a slightly lower amount of 35 percent of Millennials, 26 percent of Gen X, 22 percent of Baby Boomers and 15 percent of the Silent Generation, according to the American Psychiatric Association.

The rise in therapy seeking is giving an overall boost to the mental health industry as a whole. After all, the number of Americans seeking mental health treatment increased almost twofold over the past decade.

While only 13 percent of American adults had visited a mental health professional in 2004, that number grew to 23 percent in 2022, according to Gallup polls.

Part of the increase in treatment seeking is attributed to the coronavirus pandemic, as young adults reported roughly a 5 percent increase in mental health treatment from 2019 to 2021, according to the Centers for Disease Control and Prevention.

"Without a doubt, shortly after the pandemic started there was a huge demand for our services," Daniel Fridberg, associate professor of psychiatry at the University of Chicago, told The Hill.

Depression and anxiety were at all time highs during this time, but it might not fully explain why Gen Z has been more likely to seek out help.

As the pandemic changed the mode that therapy could be available to patients, it's possible teletherapy made mental health treatment more accessible to those struggling whereas they wouldn't have sought out help in the past.

"The most important factor driving the increase in demand for psychotherapy is a basic structural change, how psychotherapy is delivered," Mark Olfson, a professor of psychiatry, medicine and law at the Columbia University Irving Medical Center, told the publication.

During 2020, between the months of March and April, teletherapy comprised 40 percent of mental health and substance use outpatient visits.

While some doubt the effectiveness of teletherapy, 63 percent of those who underwent therapy via this mode rated it as effective, according to a YouGov and Forbes Health survey.

Gen Z might also be at the precipice of the shift in mental health services because they are less likely to hold a stigma toward seeking help. Sharing experiences about therapy via social media has been relatively normalized, which is something previous generations didn't grow up with.

"When I talk to my younger patients, many of them are rather open with their friends about their mental health, they are rather upfront about it," Fridberg said. "They talk about going to therapy, they talk about their diagnosis, they talk about what steps they are taking to address it. That's a real shift."

Gen Z also experienced increasing rates of gun violence and anxiety over climate change while they were young. Key events during this time of their lives could also push a larger amount to seek help related to anxiety or depression, experts say.

"Current events are clearly stressful for everyone in the country, but young people are really feeling the impact of issues in the news, particularly those issues that may feel beyond their control," Arthur C. Evans Jr., the American Psychological Association's chief executive officer, said in a report.

Gen Z is also facing higher rates of economic instability, with inflation reaching a record high of 9.1 percent in 2022. Affording necessities like food, gas and housing has become increasingly difficult as the generation pays the highest amount for higher education and home prices compared to years past.

Around half of Gen Z said the future was their biggest concern while a smaller 45 percent said finances were their biggest worry, according to Harmony Healthcare IT.

More Help Will Be Required in Mental Health Industry

As larger numbers of Americans seek out mental health treatment, the industry is likely to see a shortage in qualified mental health professionals to address the growing demand.

The Department of Health and Human Services predicted there will be a shortage of more than 10,000 mental health professionals by 2025, and it's likely to only grow in the years to come.

"We have a chronic shortage of psychiatrists, and it's going to keep growing," Saul Levin, the CEO and medical director of the American Psychiatric Association, told the Association of American Medical Colleges. "People can't get care. It affects their lives, their ability to work, to socialize, or even to get out of bed."

The healthcare professionals are already experiencing the shift firsthand. Roughly two-thirds of the behavioral health workforce reported a higher client caseload and 72 percent saw increased client severity since the onset of the coronavirus pandemic, according to the National Council for Mental Wellbeing.

The burnout experienced by mental health professionals also appears to be hitting a high, with nine in 10 professionals indicating they've experienced burnout.

"The workforce shortage is our top challenge and our top priority. It's vital for the future of substance use care and mental health treatment that we have multiple avenues to attract and retain workers," said Reyna Taylor, senior vice president of public policy and advocacy at the National Council for Mental Wellbeing, in the report.