Employment among Estonia's 15- to 24-year-olds has fallen to its lowest level in the past 15 years. At the same time, the number of young people with partial or no capacity for work is growing and nearly three-quarters of them are affected due to mental health issues.

News like this usually prompts calls for more funding for mental health services. More psychologists, counselors and treatment options. There is no doubt these are needed, but if we focus only on the healthcare system, we are treating the consequences while leaving the causes untouched. 

The mental health crisis is fundamentally about whether a young person can find their place in society. More broadly, it is an issue of the economy and the labor market. Mental health is influenced by many different factors, but many of them share one common denominator: confidence in the future. 

A study published this year in Scientific Reports found a direct link between housing affordability, financial stress and mental health. In short, if a person cannot afford a home or spends most of their income on housing, stress levels rise, anxiety accumulates and the risk of depression increases. Young people, renters and lower-income individuals are affected the most.

A labor market study from a few years ago points to the same conclusion. Insecure jobs, temporary contracts and the constant fear of losing one's job increase burnout and mental health problems. If you do not know whether you will still have a job in six months, whether you will be able to pay your rent or make plans for the future at all, it is obvious that this will leave its mark on your mental health. 

Meaningful and manageable work also provides a sense of self-fulfillment and the knowledge that you are needed. An insecure employment relationship often means loneliness, weaker ties to the community and society and the feeling that there is no real place for you. For this reason as well, unemployment and exclusion from the labor market are strongly linked to hopelessness and mental health problems. 

This raises the question of whether we are even looking at the right picture when we talk about mental health. If the number of people living in economic insecurity grows faster than the healthcare system can treat the problems caused or exacerbated by poverty, then we cannot solve the problem solely in a doctor's office. We can train hundreds of additional therapists and devote as much as 5 percent of the budget to mental health. But if society simultaneously suffers from instability and insecurity, the crisis will continue. 

In my view, mental health policy cannot be separated from economic policy. The connection between mental health and the economy is not only about money. A well-functioning economy gives people the opportunity to feel that they have control over their lives. 

When people see a realistic opportunity to find work, secure a home, start a family and move toward their goals, their psychological resilience grows as well. Economic policy does not directly address the causes of mental health problems, but it can create conditions that help prevent many of them from emerging. This is precisely why economic growth, entrepreneurship and job creation are also, indirectly, mental health policy. 

That means an economic environment in which companies have reasons to invest and create new jobs, less bureaucracy, faster permitting and planning procedures, a tax environment that encourages entrepreneurship and an education system that helps young people acquire the skills and jobs the economy actually needs. It also means a housing policy that increases supply and keeps homeownership a realistic goal for young people. 

Of course, psychologists and counselors must be quickly accessible to everyone regardless of where they live or how much money they have. Prevention is equally important. When we talk about a mental health crisis, we are usually referring to people who are already in a deep hole, just like the young people mentioned in the news who are beginning their adult lives with limited work capacity. In reality, we should address these issues earlier because effective prevention begins at home, in school and in the workplace. For young people, that means tackling loneliness, understanding digital habits and intervening early when necessary — before a problem becomes a chronic illness. 

Young people's mental health will determine whether Estonia's economy remains competitive whether we are able to create prosperity at all and it is directly linked to Estonia's demographic crisis. Our generations are becoming smaller and smaller and every young person who is excluded from education, the labor market or entrepreneurship because of health problems has a greater impact on society than ever before. 

When the number of working-age people is already declining, we simply cannot afford, for the sake of Estonia's long-term future, to allow a growing share of young people to be unable to realize their full potential. That means fewer taxpayers, less value created, slower economic growth and greater pressure on the healthcare and social welfare systems. 

--

Follow ERR News on Facebook and X and never miss an update!