Gen Z Is Quitting Jobs Without Backup Plans At Record Rates—And Employers Are Scrambling To Figure Out Why

New research from LinkedIn's Workforce Confidence Index shows that Gen Z workers (ages 22-27) are quitting jobs without backup plans at twice the rate of millennials and three times the rate of Gen X workers.

In Q3 2025, 38% of Gen Z workers who left their jobs did so without another offer lined up. For millennials, that number is 19%. For Gen X, it's 12%.

Gen Z is walking away from paychecks with nothing waiting on the other side—and they're doing it more than any previous generation.

Employers are panicking. Recruiters are confused. And Gen Z workers say they're just not willing to stay in jobs that make them miserable.

Here's what's actually happening.

The Numbers: Gen Z Is Quitting Without Safety Nets

LinkedIn analyzed voluntary resignations from 3.4 million workers between January and September 2025.

Key findings:

Gen Z (ages 22-27):

38% quit without another job lined up
Average tenure before quitting: 1.4 years
Top reason cited: "Mental health and burnout"

Millennials (ages 28-43):

19% quit without another job lined up
Average tenure before quitting: 3.2 years
Top reason cited: "Lack of growth opportunities"

Gen X (ages 44-59):

12% quit without another job lined up
Average tenure before quitting: 5.8 years
Top reason cited: "Compensation and benefits"

Boomers (ages 60+):

8% quit without another job lined up (most are retiring)
Average tenure before quitting: 8.3 years

Gen Z's quit rate without backup plans has increased by 67% compared to 2023.

This isn't about layoffs or economic conditions—these are voluntary resignations during a period of economic growth and low unemployment.

Why Gen Z Is Walking Away Without Backup Plans

Researchers interviewed 2,400 Gen Z workers who quit without other jobs. The reasons challenge conventional wisdom about why people leave jobs.

1. Mental Health Takes Priority Over Financial Security

78% of Gen Z workers who quit without backup plans cited "mental health, burnout, or anxiety" as the primary reason.

Direct quotes from the research:

"I was having panic attacks every Sunday night. I couldn't keep doing it, even if it meant being unemployed for a while." —24-year-old former consultant

"My therapist told me the job was making me worse. I realized no paycheck is worth therapy sessions twice a week." —26-year-old former marketing coordinator

"I'd rather be broke and sane than employed and miserable." —23-year-old former software engineer

Gen Z prioritizes mental health over financial stability in ways previous generations didn't. They view quitting a harmful job as self-care, not recklessness.

2. Low Confidence In Job Market (So Why Wait?)

Ironically, Gen Z's willingness to quit without backup plans stems partly from pessimism about the job market.

The logic: "If finding a good job is hard anyway, I might as well quit now and search while unemployed instead of burning out while employed."

63% of Gen Z workers believe finding a "good" job (aligned with values, reasonable workload, growth opportunities) takes 6+ months regardless of whether they're employed.

If job searching is going to be a long slog either way, they'd rather start it immediately—not after another year of suffering.

3. Financial Safety Nets (From Parents)

42% of Gen Z workers who quit without backup plans reported receiving financial support from parents during unemployment.

The ability to move back home or receive parental financial help makes quitting without a plan more feasible.

Millennial quote (for contrast):

"I stayed in a toxic job for three years because I had student loans and rent. I didn't have the option to quit without something lined up." —34-year-old millennial

Gen Z quote:

"I moved back in with my parents for four months while I job searched. They were supportive. It beat staying in a job that was destroying me." —25-year-old Gen Z worker

Economic precarity paradoxically makes Gen Z both more financially anxious and more willing to quit—because they can rely on family safety nets in ways they don't expect to rely on jobs.

4. Values Misalignment Is A Deal-Breaker

56% of Gen Z workers who quit without backup plans said "values misalignment" was a major factor.

What they mean by values misalignment:

Company says it cares about diversity, but leadership is all white men
Company claims work-life balance matters, but expects 60-hour weeks
Company promotes sustainability, but has environmentally harmful practices
Company talks about mental health, but punishes people who use mental health days

Gen Z views values misalignment as a moral issue, not just a preference. They're willing to be unemployed rather than work somewhere that contradicts their values.

Gen X perspective (for contrast):

"I don't love my company's politics, but the pay is good and the job is stable. I can separate my values from my work." —47-year-old Gen X worker

Gen Z perspective:

"If I'm spending 40 hours a week somewhere, it has to align with who I am. Otherwise, what's the point?" —24-year-old Gen Z worker

5. Social Media Normalizes Job-Hopping And Quitting

TikTok and Instagram are full of "I quit my toxic job" content. Gen Z sees peers quitting jobs without backup plans and surviving—even thriving.

Hashtags like #quittok, #toxicworkplace, and #quitcorporate have billions of views.

When quitting is normalized and celebrated on social media, it feels less risky.

Content that goes viral:

"I quit my $80K job with nothing lined up and I've never been happier"
"Day 47 of unemployment: still don't regret quitting"
"Why I walked out mid-shift and blocked my manager"

These narratives create a cultural permission structure for Gen Z to quit without safety nets.

How Employers Are Responding (Badly)

Most employers are responding to Gen Z quit rates with confusion and frustration—not adaptation.

Common employer reactions:

1. "Gen Z is entitled and can't handle real work"

This is the most common response—and the least productive.

Dismissing Gen Z concerns as "entitlement" ignores data showing they're working just as many hours as previous generations but experiencing higher burnout.

2. "We need to pay them more"

Compensation matters, but it's not the primary driver.

Gen Z workers who quit cited mental health, values misalignment, and lack of flexibility more often than compensation.

3. "Let's add more perks"

Ping-pong tables, free snacks, and happy hours don't solve burnout.

Gen Z wants systemic changes: flexible schedules, reasonable workloads, psychological safety, and leadership that listens.

What Actually Works To Retain Gen Z Workers

Companies with low Gen Z turnover have specific practices in common.

1. Flexible work arrangements (truly flexible)

Not "you can work from home Fridays." Real flexibility: choose your hours, work remotely when needed, take mental health days without guilt.

Example: Atlassian

Atlassian's "Team Anywhere" policy lets employees choose where and when they work. Gen Z retention at Atlassian is 40% higher than industry average.

2. Manager training on mental health

Gen Z wants managers who understand mental health and don't penalize them for prioritizing it.

Companies that train managers on mental health conversations see 30% lower Gen Z turnover.

3. Transparent career paths

Gen Z wants to know: "If I stay here, where will I be in 2-3 years?"

Companies that provide clear development plans and promote from within retain Gen Z workers at twice the rate of companies that don't.

4. Values authenticity

Stop saying you care about things you don't actually care about.

Gen Z will leave if they catch you lying about values. Better to be honest about what you prioritize than fake alignment.

Example: Patagonia

Patagonia's Gen Z retention is 85% (compared to retail industry average of 45%) because their environmental values are authentic and embedded in operations.

5. Reasonable workloads

Gen Z will quit if you expect 60-hour weeks.

They don't want to "grind" or "hustle." They want to work hard during work hours, then disconnect.

The Bottom Line For Recruiters And Employers

Gen Z is quitting without backup plans because they prioritize mental health, values alignment, and work-life balance over financial security.

What this means:

For retention:

Stop treating Gen Z turnover as "kids who can't handle work"
Address systemic issues: workload, manager quality, flexibility, values authenticity
Offer real mental health support (not just an EAP brochure)

For recruiting:

Gen Z wants to hear about culture, flexibility, and mental health support—not just compensation
Be authentic about work culture (they'll figure out if you're lying within 3 months and quit)
Highlight growth paths and manager quality in recruiting pitches

The companies that figure out Gen Z retention will have a massive advantage. Those that don't will face chronic turnover and recruiting challenges for the next 20+ years.

Gen Z isn't going away. And they're not going to suddenly start tolerating toxic jobs because "that's how it's always been."

Adapt—or keep hiring replacements every 14 months.

Sources:

The Daily Hire