Wellbeing and Mental Health

Why we must take urgent action on youth brain health for the sake of the global economy

A young person with poor mental or brain health.

Poor youth brain health is a global issue with far reaching consequences.

Image: Photo by Vesky on Unsplash

This article is part of: Centre for Health and Healthcare
  • The McKinsey Health Institute estimates brain health disorders cost the global economy $5 trillion annually.
  • No brain health strategy can succeed without prioritizing young people.
  • By investing strategically in brain health, we can build the foundations for future prosperity, without this we risk economic decline and wasted human potential.

Brain health is no longer just a health issue — it's an economic emergency. At this year's World Economic Forum in Davos, brain health emerged as a top priority, with leaders recognizing its critical role in workforce productivity and economic stability. Efforts are now underway to make brain health a G7 priority, acknowledging it as a key driver of innovation and prosperity.

The stakes are high. The McKinsey Health Institute estimates brain health disorders cost the global economy $5 trillion annually, likely to triple by 2030. These trends confirm that brain health is a fundamental economic imperative.

Yet, no brain health strategy can succeed without prioritizing young people. Today’s youth will shape the future workforce, but without urgent action, declining cognitive health will weaken global competitiveness. Only a bold, coordinated effort — uniting governments, businesses and civil society — can drive the systemic change needed to safeguard the future of our global workforce.

There is a crisis in youth mental health

Brain disorders, including depression, anxiety and neurodevelopmental conditions, have reached alarming levels among young people. According to the World Health Organization (WHO), one in seven 10–19-year-olds experience a mental disorder, with depression and anxiety being the leading causes of disability. Most mental disorders manifest before the age of 25, making this developmental window critical.

Since the majority of brain development occurs during early childhood and adolescence, this period is vital for establishing a healthy brain and maximizing cognitive potential — ultimately shaping our capabilities for life.

Cognitive skill decline and demographic shifts

The OECD's Survey of Adult Skills reports a widespread decline in literacy proficiency and stagnating numeracy skills. While these declines were most pronounced in older age groups, even young adults aged 16 to 24 showed some decreasing skills. Parental education levels compound these challenges, with children of less-educated parents facing steeper disadvantages.

The future of work demands brain skills: creativity, emotional intelligence and cognitive flexibility. The World Economic Forum Future of Jobs Report highlights the growing need for these abilities, a demand intensified by ageing populations in higher-income economies. Yet, declining brain health and outdated education systems leave many young people unprepared to meet these challenges.

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What is the World Economic Forum doing about mental health?

The economic cost of ignoring youth brain health

Poor foundations in cognitive development threaten economic growth by limiting productivity and creativity. Industries that demand high cognitive performance — such as AI, biotech, finance and engineering — are already experiencing skill shortages. Although global youth unemployment has reached a 15-year low of 13%, according to the International Labour Organization, economic uncertainty leaves two-thirds of young people worried about job security.

According to the latest Global Shapers Community Impact Report, 64% of young people in North America, Europe and MENA feel worse off than their parents. Despite this, 83% still see the world as full of opportunities, but optimism alone is not enough — we must provide them with the cognitive tools and mental resilience to turn that vision into reality.

Without swift intervention, we risk a generation unprepared for the future, triggering declining productivity, stalled innovation and economic stagnation. Countries that neglect to invest in youth brain health will fall behind in the global economy.

Future-proofing education for cognitive resilience

To prepare today's students for tomorrow's jobs, education systems must be fundamentally modernized. According to the World Economic Forum, 39% of current workers' existing skill sets will be transformed or become outdated in the next five years. A comprehensive youth brain health strategy is essential to develop cognitive resilience and adaptability in young people.

This transformation requires multiple approaches: integrating neuroscience-backed learning techniques, emphasizing critical thinking skills and counteracting the cognitive impact of persuasive digital technologies. With AI and modern information systems reshaping how our brains process information, we must prioritize brain health education and embed cognitive training into curricula to ensure students can thrive in the global economy.

Expanding access to youth brain health services

Brain health literacy must become standard practice in schools, with comprehensive programmes that develop socio-emotional competencies and cognitive resilience. For example, Germany's Dare2Care initiative has successfully impacted over 12,000 young people through workshops focusing on self-awareness and empathy. Building on these foundations, expanding access to youth-focused brain health services is critical.

To prevent long-term societal and economic costs, we need a multi-faceted approach combining early intervention programmes, school-based counselling and innovative digital solutions. Importantly, these interventions must be tailored to serve diverse populations effectively. Digital platforms like memnun are leading the way by providing specialized mental resilience training for people of colour, while organizations such as Sesame Workshop create culturally sensitive materials for displaced children in languages such as Dari and Ukrainian. These targeted, inclusive approaches ensure that brain health support reaches all youth demographics, leaving no one behind.

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Creating brain-healthy work spaces for Gen Z

The next generation of professionals urgently needs workspaces designed to support cognitive well-being, but most companies are falling short. To future-proof productivity, organizations must reimagine workspaces by integrating natural light, quiet zones for deep focus and adaptable collaboration spaces that fuel creativity and mental resilience. These brain-healthy workplaces should integrate mindfulness breaks, flexible scheduling that aligns with natural productivity rhythms and digital minimalism to reduce cognitive load.

Companies need to adopt 'neuro-inclusion' practices to accommodate diverse cognitive styles and sensory needs, especially for neurodivergent individuals. Most organizations still lack robust anti-burnout policies such as enforced work-hour limits, mandatory offline periods and clear work-life boundaries. According to Randstad's latest Workmonitor Report, work-life balance has surpassed pay as the primary motivator for employees, yet few companies have adapted to meet this demand.

Employers must start investing in supportive environments to cultivate a resilient workforce capable of driving innovation and maintaining a competitive edge in the cognitive economy.

We need young people to reach their full potential to tackle the increasing urgency of our challenges. Today's youth brain crisis presents an unprecedented economic challenge. By investing strategically in brain health, we can build the foundation for future prosperity. The cost of inaction is irreversible — without bold action today, we risk a future defined by economic decline and wasted human potential.

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