Generation Z – those born between the late 1990s and early 2010s – has been criticised for being hard to manage and lacking a strong work ethic, according to a report from January 2025 by the Confederation of Norwegian Enterprise (NHO).
In response to these concerns, a team of researchers set out to investigate whether there is reason to worry about the future of the welfare state.
“Generation Z will have to both finance the welfare system and meet the significant demand for labour in the coming years,” explains Guro Ødegård, researcher and director at the Welfare Research Institute NOVA at OsloMet.
Whether they succeed in doing so, especially amid an ageing population and declining birth rates, is important but remains to be seen.
“However, our findings suggest that the welfare state is resting on solid ground.”
A generation with high expectations
Together with colleagues Tale Hellevik and Anne Skevik Grødem, Ødegård analysed data from the survey Norwegian Monitor in addition to reviewing research on the welfare state, young people and working life. The findings were presented at Arendalsuka in August 2025.
See the fact sheet on the findings here (oda.oslomet.no) (In Norwegian).
“Every generation is shaped by the time they grow up in. Generation Z is the first fully digital generation – they were essentially born with the internet in their pockets,” says Ødegård.
This digital upbringing has influenced them in many ways, including their expectations for a flexible working life.
Ødegård continues: “Today’s young people prioritize a healthy balance between work and leisure. They also value leadership that focuses on the individual and are more drawn to independence than older generations”.
She references a 2013 study by Sean Lyons and Lisa Kuron (psycnet.apa.org), which found exactly this – findings Ødegård believes remain relevant today.
Today’s young people have a unique ability to adapt to and make use of digital tools. This is exactly the kind of skill the future labour market needs.– Guro Ødegård
Solidarity and willingness to pay taxes
Despite their desire for flexibility, Generation Z strongly support the welfare state. According to the researchers, young people display a significant sense of solidarity with older generations.
“A majority of young people believe it is a key political responsibility to strengthen elderly care. In fact, they show greater solidarity with older people than older people do with families with children,” Ødegård says.
The Norwegian Monitor survey also asked respondents whether they believed high taxes were necessary to sustain essential public services.
“We found that Generation Z is at least as willing to pay taxes as older generations. Since the turn of the millennium, tax willingness has increased the most among the youngest age groups.”
Rising disability rates among young people
However, Ødegård notes some worrying trends. For instance, data from NAV shows that the proportion of young people receiving disability benefits has increased over the past decade, particularly among those aged 25–29.
“Not everyone is able to participate in working life. Among young people on disability benefits today, nearly seven out of ten have mental health disorders or behavioural issues as their primary diagnosis,” she says.
The reasons behind this trend are not yet fully understood. But Generation Z is also a generation marked by worry. In 2021, one in four young people reported frequent concerns about the future, according to analyses by Ødegård and her colleagues.
Smartphones and troubled times
“Future-related worries have increased sharply among young people over the past decade, while this is not the case among those over 40. This is a global phenomenon: young people have become more anxious since 2010,” Ødegård declares.
She references social psychologist Jonathan Haidt, who attributes much of this anxiety to the digitalisation of childhood. According to Haidt, it is not smartphones or social media in themselves that are the issue, but specific features such as ‘like’, ‘share’ and ‘retweet’, introduced in 2010 alongside the front-facing smartphone camera.
“The smartphone may have played a role in this, but we must also acknowledge the turbulent times young people are growing up in, marked by political instability, multiple wars, an escalating climate crisis, a global pandemic, and economic uncertainty. All of these factors may contribute to a sense of uneasiness surrounding adulthood and its responsibilities.”
Adapting the workplace for Generation Z
In the workplace, Ødegård argues that trying to mold young employees to fit rigid hierarchical structures is unlikely to succeed: They have been educated in a school system that emphasises participation, critical thinking, and taking responsibility for one’s own learning.
“I would turn the mirror around and highlight how today’s young people have a unique ability to adapt to and make use of digital tools. This is exactly the kind of skill the future labour market needs. Employers who manage to adjust to their expectations will have a competitive edge in attracting new talent. The key is creating workplaces where individuals are recognised and can fully utilise their skills.”
That said, Ødegård suggests that young people might also need encouragement to pursue careers critical to the welfare state’s sustainability.
“With an ageing population, Norwegian society urgently needs workers who can help sustain the welfare system. Not everyone can become an influencer,” she says with a smile.
