I think part of this increase may be down to an increased awareness of mental health issues. Mental health problems that were not understood, or ignored in decades past, are much more clearly seen now.
However, it seems undeniable that life has gotten worse across the Western world for younger generations. Economic independence of any kind is impossible without going into soul-crushing debt first. In many ways, it bears similarity to the indentured servitude of the past. Meanwhile, you get lectured by a generation that grew up with free education, cheap rents, and jobs that were easy to get and could support a whole family.
If much of this is caused by economic factors, will the soon-to-be widespread automation of more of the economy make things better or worse? My guess is that in the short term, they will get worse. Until we arrive at what new economic model follows.
Driving jobs are about to disappear to self-driving autonomous vehicles. They were one of the last refuges of the less educated to have a degree of economic independence, especially for less educated young men. The mental health consequences of that category of job disappearing forever may be enormous.