Gen Z Embraces Purpose and Passion in Hobbies – New Report Uncovers Surprising Concerns

In 2025, a new report reveals significantly deeper insights into the dynamics of Generation Z than common stereotypes suggest. The “Gen Z Wellbeing Index 2025,” a collaboration between Year13 and Scape, illustrates how young Australians are reshaping their identities, values, and mental health amid a tumultuous world. Contrary to popular notions of their fixation on avocado toast, this generation is demonstrating increased resilience, with many exhibiting stronger senses of purpose and passion for their hobbies. Such internal growth comes at a time when external pressures intensify, reflecting the complexities they navigate in their everyday lives.

As Gen Z matures, they confront a myriad of societal challenges, including climate change, political fragmentation, and advances in technology like artificial intelligence (AI). According to Year13 co-founder Will Stubley, the youth of Australia feel the mounting pressures of finding their paths in the face of rapid changes in the job market and economic instability. Many are concerned about future opportunities, which adds to their anxiety, making the transition from education to the workforce a pressing focus for their overall well-being. The report emphasizes a critical need for support systems to help Gen Z adapt to an evolving landscape while pursuing future-focused career pathways.

The emotional toll on this generation is evident, with an increase in mental health diagnoses, particularly obsessive-compulsive disorder (OCD), as traditional stressors such as education and job uncertainty take center stage. Politics, once a peripheral issue for many youth, has now emerged as a significant stressor—concern regarding political division has nearly doubled over the last year. Young Australians are increasingly aware of their socio-political environment and its implications, reflecting an active engagement with issues that once might have been considered background noise.

This heightened awareness is demonstrated through the voices of young individuals like Western Australian teen Milla Penberthy, who perceives these challenges directly affecting her cohort. Penberthy expresses a desire to leverage AI as a tool for empowerment rather than viewing it with fear. Meanwhile, international student Lyvia emphasizes the necessity of staying informed about political developments affecting her status in Australia, particularly amid rising living costs. Both youth discuss the financial stress they grapple with as they navigate independence while managing the cost of living, which can significantly impact their emotional well-being.

Despite these pressures, Gen Z is adopting new coping strategies. There is a movement away from behavior patterns associated with alcohol and vaping. Reports indicate that the percentage of young Australians abstaining from alcohol has risen significantly, and daily vaping rates have dropped, suggesting a growing awareness of their health implications. Concurrently, many are gravitating towards offline activities like sports and volunteering for relaxation, signaling a deliberate shift from screen-based distractions towards more fulfilling and health-centered pastimes.

However, not all aspects of Gen Z’s lives have improved. Issues such as poor dietary habits and sleep deprivation remain persistent. A considerable portion of this generation identifies as night owls, revealing an ongoing struggle with sleep, often influenced by phones, stress, and anxiety. Throughout these changes, the overarching concern about “figuring out my future” remains a dominant theme, indicating that despite their evolving mindset and growing self-awareness, many Gen Z members still find themselves weighed down by uncertainty in a rapidly changing world.