Young workers could lose £9.9bn a year due to mental health-related employment gaps, data finds

Smith added: “When young workers move in and out of employment, it can be hugely disruptive, leading to lost income and opportunities.

“Creating a healthier, more sustainable working life for young people requires us all to come together. 

“We need to equip young people with the skills to navigate the realities of work and create workplaces that encourage an empathetic culture to better support mental wellbeing and encourage early intervention, so issues are addressed before they reach crisis point.”

She said: “Together, we can build a future where young workers don’t just start their careers, they thrive in them.”

Andrew Western MP, Minister for Employment, said: “I want to thank AXA Health for this vital report; helping young people remain in stable, secure and fulfilling employment is a key focus for this Government.”

“We are already supporting young people through our £2.5 billion youth employment support package with 300,000 new work experience placements and providing support to young people with health conditions and disabled people through our £3.5 billion employment support package. 

“We need to do more, which is why we appointed Alan Milburn to carry out a review into youth and work, which will report back this Autumn.”

Dr Imren Sterno, head of mental health and consultant clinical psychologist at AXA Health, said: “One of the findings that stood out to me was how late many young people recognised that work was beginning to affect their wellbeing. 

“Only 19% spotted the problem at the first signs, while others only recognised it when they were close to burnout or when the impact had spread into life outside work.

“That is particularly important early in a career. Experience helps us develop reference points for what reasonable pressure feels like, how we recover and when we may need support.”

Sterno added: “Someone entering working life has had less opportunity to develop those personal guardrails.

“We should prepare young people not simply to get a job, but to build a healthy relationship with working life. 

“That doesn’t mean removing challenge or treating every difficult day as a mental health problem. 

“It means helping people recognise when pressure is becoming harder to manage, raise concerns early and access clinically credible help when it is needed.”

The report called for better preparation for working life, earlier intervention and clearer workplace health support.

It also urged employers to train managers to notice changes, listen and direct workers to suitable support without expecting them to diagnose or treat mental ill health.

Half of those surveyed said work had increased their confidence overall, while 65% said their current workplace had increased it.

However, only 13% felt very well prepared when they started work. 

38% wanted more preparation for work-life balance, 27% for managing workload and stress and 25% for building confidence at work.