Gen Z, those born between the late 1990s and early 2010s, are entering the workforce during one of the strongest job markets in US history. Compared to Millennials who entered the workforce during the Great Recession, Gen Z is experiencing a much more favorable economy. Wages for younger workers have increased faster than inflation, and the unemployment rate for 16-to-24-year-olds last year was the lowest since 1953. Despite these positive trends, Gen Z is facing challenges, such as rising inflation and high housing costs.
Inflation has pushed prices higher over the past three years, making essentials like food more expensive. Shelter costs have also ballooned, making it challenging for younger workers to find affordable housing. Homeownership, which can provide a financial cushion during periods of inflation, is out of reach for many Gen Z individuals. The younger workers are starting out at a disadvantage in the workforce, typically earning entry-level wages, which can be difficult to live on.
Gen Z is using social platforms to express their financial angst and compare their situations with others. Social media platforms like TikTok provide a space for individuals to voice their struggles with the cost of living and financial hardships. This generation is facing higher rates of anxiety, depression, and distress, with many unable to seek out medical care due to the high costs associated with behavioral health care. Some Gen Z individuals turn to social media platforms for advice and support, highlighting the challenges they face in accessing traditional healthcare resources.
The impact of the pandemic on Gen Z’s formative school years has contributed to their sense of disillusionment and despair. Gen Z individuals are dealing with the uncertainty of adulthood, including challenges related to homeownership, income stability, and climate change. Higher inflation expectations among Gen Z individuals can contribute to a cycle of rising prices and economic uncertainty. The sense of fatalism among this generation poses challenges for addressing and managing inflation in the economy.
While Millennials also faced challenges in the workforce, such as stagnant wages and high debt levels, they have seen some improvements in recent years. Many Millennials have caught up in terms of retirement savings and have seen wage increases since 2019. This suggests that over time, younger generations can make progress economically, despite the initial challenges they face. Gen Z individuals can take solace in the experiences of Millennials and work towards building financial stability and security in the future.
