Mental health conditions account for more than half of Gen Z's LTD claims in Canada
Canada’s Gen Z employees are experiencing the fastest growth in mental health issues and chronic disease compared with other age groups, putting employers at higher risk of lost productivity and escalating benefits costs in the workplace.
That's according to a new report that finds Gen Z workers (born between 1997 and 2012) are showing greater mental health difficulties and rising rates of chronic conditions, despite being the youngest segment of the workforce.
This cohort is expected to dominate Canada’s workforce by 2030, says Sun Life.
Mental health conditions now account for more than half of Gen Z’s long‑term disability (LTD) claims, compared with roughly 40% for the overall plan member population, according to the report.
Gen Z antidepressant drug claims grew at two times the rate of all plan members from 2021 to 2024. Among Gen Z men, the use of antidepressants rose by more than 50% over the same period, growing faster than both overall members and Gen Z women.
Despite these trends, Sun Life says more Gen Z men are seeking professional support. The growth in psychologist visits for Gen Z men outpaced that of Gen Z women and was almost twice as fast as the growth among all plan members.
A growing share of Quebec employees is juggling paid work with unpaid caregiving, often in silence — and that silence is putting them and their employers at risk of absenteeism, burnout, turnover and stalled careers, a recent Léger survey suggests.
Broader cost of mental illness for employers
According to the Mental Health Commission of Canada, about 30% of short‑ and long‑term disability claims in Canada are attributed to mental health problems and illnesses. The total cost from mental health problems to the Canadian economy exceeds $50 billion annually. In 2011, mental health problems and illnesses among working adults in Canada cost employers more than $6 billion in lost productivity from absenteeism, presenteeism and turnover.
These figures remain a key benchmark for employers modelling the business case for mental health investment, even as newer data show rising prevalence among younger workers.
“We know that mental health triggers in the workplace can lead to disability – things like stress, casual and part‑time work, and uncertain economic conditions can really take a toll on workers – especially if there is a pre‑existing mental health condition,” said Dr. Carolyn Dewa, head of CAMH’s Work and Well‑being Research and Evaluation Program, in a 2025 article published by Longwoods. “And while it is important to support workers that are on disability leave, it is crucial that businesses make mental health and wellness a priority to prevent disability in the first place.”
Three in four young Canadians (75%) say they have experienced anxiety, and nearly half (49%) say they have faced depression, according to a previous report from Leger.
Chronic conditions rising earlier among Gen Z
The Sun Life report — based on data from more than 20,000 employers and three million plan members — also highlights accelerating growth in chronic disease among younger workers. The insurer states that claims for drugs to treat asthma and chronic obstructive pulmonary disorder, diabetes, high blood pressure and high cholesterol are growing at two to three times the rate among Gen Z employees compared with other age cohorts.
For diabetes alone, drug claims among Canadians under 30 grew two to four times faster than among those aged 30 to 60, Sun Life says. Within Gen Z, diabetes drug claims for women are growing 40% faster than for men.
Sun Life notes that while the current incidence of chronic disease among Gen Z is still much lower than among older employees, “the prevalence of chronic disease among young Canadians is rising,” and warns that by the time today’s Gen Z workers reach middle age, chronic disease incidence could be “significantly greater than today for those aged 40 to 59.”
“Canadians deserve health solutions that fit their real lives,” said Marie‑Chantal Côté, Senior Vice‑President, Sun Life Health. “We’re giving them practical tools to support every stage of life, because nothing matters more than protecting your health.”
Supporting workers physical, mental health
The overall health of a workplace includes both the physical and psychological well‑being of its workers, according to the Canadian Centre for Occupational Health and Safety (CCOHS). This broader lens is increasingly important as mental health‑related claims and chronic disease trends converge among younger workers.
“By treating mental health and its psychological component equally with the physical environment, a workplace can support their workers’ overall well‑being. Poor mental health not only hurts the individual, it also reduces corporate profits.
"It’s important that all levels of the workplace – including the Board of Directors, management, finance, and human resources departments – get involved to incorporate mental health at your workplace. It is also necessary to engage your health and safety committee and workers – we all have a shared responsibility for health and safety, including mental health.”
