6 reasons Gen X is walking away from the workforce

Gen X, born between 1965 and 1980, is making headlines by walking away from the workforce at growing rates. They’ve carried the load of full‑time jobs, raising kids, and caring for aging parents, and many are simply done. Now, they’re stepping back.

In September 2025, the U.S. labour force participation rate for ages 25‑54 was 83.7%, highlighting the high engagement this generation still has with the workforce. These figures reinforce the generation’s robust presence in the workforce but illustrate the growing stress that is causing Gen X to revisit its careers.

Surveys from PeopleScout, for example, show that 79% of Gen Xers feel forgotten in the workplace. As corporate loyalty atrophies, economic uncertainty pushes to new highs, and priorities shift, this generation is pushing back into bold choices to step away from the daily grind. Here are six reasons this is happening, along with the data behind them.

Burnout after decades of work

After decades of full‑time careers, balancing work, family, and personal side projects, many Gen Xers are simply burned out and exhausted. While stress is a common experience for most American workers, with 72% of them reporting moderate to very high levels of stress at work in 2025, Gen Xers seem to be carrying the load more than most.

Based on a report by Staffing Industry Analysts, 57% of Gen X employees reported feeling unsupported in balancing work demands with their mental health, compared to 68% of Gen Z and 61% of Millennials. This is heightened for members of the “sandwich generation” who are caring for kids and aging parents, leaving them feeling stretched thin.

For many, that means walking away from high‑stress jobs in pursuit of more balance, prioritizing mental health and family time over climbing the corporate ladder. The pandemic has only worsened the burnout, sending scores of Gen Xers walking away from traditional jobs in exchange for better opportunities for self‑care and autonomy.

Distrust in corporate loyalty

Another significant factor behind the mass exodus of Gen Xers from the workforce is their growing distrust of corporate loyalty. Growing up, this generation watched their parents work for the same company for 2 to 3 decades before being let go unceremoniously, an eye-opening experience that left them skeptical about the reality of long‑term job security.

Indeed, a recent survey by PeopleScout found that a staggering 79% of Gen X workers feel ignored or undervalued at work, which deeply erodes loyalty towards their employers. Moreover, one in almost every four Gen X employees has already faced layoffs throughout their careers due to restructuring efforts, company mergers, or other economic events that have forced companies to downsize.

This has caused many in this particular generation to give up on the notion that hard work for any one company guarantees them anything. In fact, more Gen Xers are freelancing, working side gigs, and seeking entrepreneurship to take control over their careers and avoid the vulnerability of corporate downsizing. The reality is quite simple: corporate promises of job security are no longer believed by this generation, leading them to increasingly seek flexible, independent work arrangements.

Economic instability and layoffs

Another reason many are leaving the workforce is the economic instability that Gen X has faced throughout their careers. At work since the early ’90s recession, followed by the 2008 financial crisis and lately the effects of the COVID-19 pandemic, many in this generation have grown disillusioned with the traditional 9‑to‑5 job model.

In August 2025, 32.4 million workers aged 45–54 were employed, according to FRED data, indicating healthy workforce participation. Economic volatility and rising layoffs have led many in this age bracket to rethink their career choices. With 25% of the employed stating that layoffs and company restructuring have forced them to quit their jobs, job security is undoubtedly a thing of the past for this generation.

Instead, many are opting out of traditional employment to pursue other forms that give them more control over their future and greater financial security. These changes away from traditional job models are prompted by a modern job market that is increasingly unpredictable, where even the most loyal workers can be sacked without any warning.

Post‑pandemic reevaluation of priorities

The pandemic triggered a mass reevaluation of work-life priorities among Gen X. The lockdowns, shifts to remote work, and health risks prompted many members of this generation to reconsider personal fulfillment, family time, and mental health.

According to Mindshare Partners, in 2025, half of U.S. workers report feeling burned out, depressed, or anxious, and many Gen Xers say their work is compromising their mental health. Many have realized that the old notion of working hard until retirement no longer holds any great appeal. For many Gen Xers, the pandemic was a breaking point; accordingly, many stepped away from the exigencies of demanding jobs into a more relaxed and meaningful life.

Instead of prioritizing financial security, many began to focus on happiness, health, and personal time, leading them to leave traditional careers in search of more flexible alternatives that better fit this new definition. As the world continues to adjust to a post-pandemic reality, this generation is leading the way with reimagining what work should look like.

Desire for flexibility and autonomy

One of the most significant drivers of Gen X’s exodus from traditional employment is a growing desire for flexibility and autonomy. In 2025, data shows that 51% of U.S. workers are actively job‑hunting or open to new job opportunities, and the top reasons were flexibility, work‑life balance, and autonomy.

Many Gen Xers are seeking work arrangements that give them more control over their schedules, whether it be working from home, freelancing, or exploring entrepreneurial ventures. This generation no longer wants to be confined to rigid office hours or lengthy commutes, and they’re actively leaving jobs that don’t allow them to prioritize their family lives or personal interests.

This need for greater control over their careers and daily routines is causing many Generation X workers to leave the traditional 9‑to‑5 job structure in search of opportunities that offer more autonomy, independence, and flexibility in their work.

Early retirement aspirations

Many Gen Xers are also leaving the workforce to pursue early retirement. A 2025 study found that 69% of working Gen Xers think retiring before age 65 is part of their version of the American Dream. But the same survey showed that 40% of these workers aren’t in a good enough financial position to make that dream true.

This financial deficit has led many Gen Xers to leave their jobs early and either retire or seek other career paths to ensure they can enjoy life on their terms, even if it means sacrificing career status.

Instead of amassing fortunes, securing personal happiness, health, and time with family has become more critical for many. Retiring early is no longer a pipe dream but a reality for a growing number of Gen Xers ready to move on from full‑time work.

Key takeaway

Gen X is leaving the workforce for several compelling reasons: from decades of burnout and distrust in corporate loyalty to economic instability and the rethinking of work priorities post-pandemic, this generation is moving toward options that offer flexibility, autonomy, and personal fulfillment.

Data indicates that a considerable number of Gen X employees are leaving the traditional 9‑to‑5 model for freelance careers, entrepreneurship, or early retirement. This shift into better mental health, more time with the family, and the pursuit of happiness is driving the future of work.

It’s about time employers came to grips with the change in priorities and adapted to the evolving needs of the workforce as more and more Gen Xers choose personal well-being over professional success.