Nearly 25% of Gen Z and Millennials Plan to Quit Their Jobs This Year

Newsweek

5 days ago

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Nearly a quarter of Gen Z and millennial employees plan to quit their jobs within the next 12 months to pursue entrepreneurship, according to a new survey.
The survey from SideHustles.com found young employees are seeking more autonomy and meaning in their work, spurring a significant generational shift in workforce priorities.
Why It Matters
This generational shift toward entrepreneurship has the potential to reshape the United States' labor market, upending the traditional 9-to-5 model and influencing everything from skills development to employer-employee dynamics.
As Gen Z was poised to outnumber baby boomers in the workforce for the first time in 2024, this trend could accelerate changes in workplace culture and the rise of the creator economy. The implications of this trend are being closely watched by employers, educators, and policymakers.
What To Know
SideHustles.com reported that 79 percent of employed Americans showed interest in leaving their jobs to start their own businesses, with Gen Z and millennials driving the momentum.
Data from their April 2025 survey indicated that 13 percent of Gen Z and 11 percent of millennials planned to quit their jobs within the next year, rates higher than those among baby boomers and Gen X.
More than half of Gen Z respondents cited the pursuit of higher income as a primary motivator for leaving corporate work, compared to 49 percent of millennials and 45 percent of Gen X respondents.
In addition, 46 percent of Gen Z reported seeking more purpose or autonomy, surpassing both Gen X (43 percent) and millennials (35 percent).
Stock image of people working in an office.
Stock image of people working in an office.
Simon Turner/Construction Photography/Avalon/Getty Images
"This kind of leap, this kind of risk, is easier to take when you're young, child-free, and have some cushion, whether that's savings, a partner's income, or just fewer bills," HR consultant Bryan Driscoll told Newsweek.
"That's not an option for everyone. So when we see this trend, it's not just about ambition: it's also about who can afford to opt out of a broken system and who gets trapped in it."
Data from Upwork's Freelance Forward Report showed that 70 percent of Gen Z workers worldwide were already freelancing or planned to do so, suggesting broad alignment with the entrepreneurial mindset.
Another motivator was a lack of support in their careers, with just 21 percent of employed Americans saying they felt fully supported by their employers. Gen Z was the most likely to say that better mentorship or career development could encourage them to stay, with one in four indicating that such support would make them reconsider quitting.
Concerns about financial instability (71 percent), fear of failure (53 percent), and the need for health insurance (41 percent) were the top reasons many hesitated to fully commit to entrepreneurship.
What People Are Saying
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "Especially post-pandemic, employees are looking for more in their work lives—more money, more meaning, more flexibility—all of which may be found in running their own business. Of course, what they may not realize is that it takes years of grinding to accomplish all three of those 'mores.' As the saying goes, 'business owners toil for decades to become an overnight success.'"
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "We've seen side hustles and part-time work that produces more income become increasingly popular with Millennials and Gen Z, and for good reason. These jobs can produce additional income to assist with rising expenses. For some, these side hustles become businesses of their own and have grown to be aspirational for many in both generations.
"It's no surprise many are now attempting to make the jump from their current occupation to a self-sustaining business they can call their own."
HR consultant Bryan Driscoll told Newsweek: "Gen Z and Millennials aren't running toward entrepreneurship because they all want to be the next Zuck, though I'm sure some think they will be. They're running away from toxic jobs and bosses, low pay, and employers who will discard them as soon as enough labor has been extracted. When work doesn't offer dignity, flexibility, or a livable wage, people find their own way. And increasingly, we're seeing that means building their own job."
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "First, they watched their parents grind through long careers with little freedom and, in some cases, not much to show for it. Secondly, they have time on their side. They can afford to take a shot at building something they actually care about.
"Especially for Gen Z, it's not just about building another business. It's about building something meaningful. They want to make an impact. Profit matters, but purpose matters more."
What Happens Next
The movement of Gen Z and millennials into entrepreneurship is expected to intensify over the coming year, with further implications for the United States workforce composition and employer retention strategies.
Ongoing labor market trends and generational dynamics will continue to shape how companies attract, develop, and retain talent as the entrepreneurial shift intensifies.
"If the traditional employer-employee model keeps shifting, companies will have to pay more and offer more," Thompson said. "Gen Z and even Gen Alpha aren't afraid of work. They're just not willing to work for something that doesn't align with their values. They want purpose. They want flexibility, and they're not afraid to leave if they don't get it."