SPOTLIGHT: Gen Z workers
October 2023
Spotlight on Gen Z Workers, October 2023
Brought to you by the
Gen Z (born between 1997 and 2012) is the only generation growing as a percentage of the workforce. All generations other than Gen Z are decreasing as a percentage of the workforce. Gen Z has "increased their employment share by at least 2 percent every year since 2018."
In July 2022, Gen Z surpassed Baby Boomers and they are "steadily gaining on Gen X and Millennials, despite experiencing the largest share of employment loss due to the COVID-19 pandemic."
Across all industries, 19.1% of workers are from Gen Z. By 2030, Gen Z-ers will make up about 30% of the workforce.
However, over a third of leisure and hospitality workers are from Gen Z, and only a little over 10% of manufacturing workers are members of this youngest working generation.
Nationally, Gen Z workers earn an average of $19.79 per hour, with slightly higher average wages in the western U.S. ($21.44) and a lower average in the south ($18.33).
Gen Z workers earn the highest average wages in Massachusetts, at $23.13 per hour.
A 2023 survey shows that 51% of the global Gen Z population says they live paycheck to paycheck.
65% of Gen Z-ers say they “believe they are starting further behind financially than earlier generations at their age.”
According to a 2022 survey, Gen Z-ers say they “require an average salary of $171,633 to feel financially healthy — the highest income compared to older generations.”
In 2022, 39% of all Gen Z “earned money working both a job and a side hustle," according to an EY report.
“[They] are starting their careers during a time of growing inflation, mounting student loan debt, a housing crisis, and an impending recession.”
Gen Z is the most diverse generation ever.
“About half” (51%) of Gen Z-ers are white, while “25% are Latino or Hispanic, 15% are Black, 6% are Asian or Pacific Islander, 5% have two or more races and 2% are American Indian.”
Gen Z “will be the last generation with a white majority and will give way to a post-2012 “majority minority” generation Alpha.”
Gen Z is the “most diverse generation to date, not only in demographics, but also in their attitudes and beliefs.”
"Gen Z is not a monolith. They are the most diverse generation to date, not only in demographics, but also in their attitudes and beliefs … Gen Z will require multiple solutions. Businesses that fail to understand the nuances inherent in this generation will lose precious time and countless dollars chasing loyalty they will never attain. But those that recognize the value in the diversity of Gen Z can gain market relevancy and competitive advantage."
According to one recent survey, 90% of Gen Z respondents aged 14 to 25 reported “struggling with mental health on a regular basis.”
84% of Gen Z-ers said they have experienced negative mental health impacts as a result of gun violence, or the fear of gun violence.
68% of Gen Z-ers say they have experienced mental health struggles as a result of experiences around climate change.
54% of Gen Z-ers report feeling “very concerned about racism and social injustice.”
"Gen Z has come of age in an era of seemingly constant turbulence and uncertainty, shaping their views on how the world is supposed to work. Their childhood was marred by 9/11, school shootings, a polarized political landscape, corporate scandals (e.g., banking collapse, #metoo), COVID-19 lockdowns, war and fluctuating economic environments."
Read more via Johns Hopkins University, Paychex, Harris Poll, Yahoo Finance, GOBankingRates, USA Today, Annie E. Casey Foundation, The Guardian, Brookings Institution, Fierce Healthcare
Half of Gen Z workers are looking to TikTok for career advice, according to a new report from ResumeBuilder.com.
"About half" of Gen Z workers say they "view career-related advice on TikTok," according to ResumeBuilder.com.
20% of Gen Z workers say they have "made career decisions based on advice" they have found on TikTok.
What's more, 11% of survey respondents (which include Gen Z and millennial workers) said they have "paid TikTok creators for career coaching, most often paying $500 to $1,500 for offered services."
Workers who get career advice on the TikTok platform largely say they "trust the advice they’re finding." However, most agreed they also “encounter misleading career-related information on the app.”
Read more via ResumeBuilder.com
States where Gen Z workers earn the most, on average:
Massachusetts: $47,066 (annual earnings); $28.10 (hourly)
Washington: $45,357 (annual earnings); $27.08 (hourly)
New York: $42,259 (annual earnings); $25.23 (hourly)
Connecticut: $41,706 (annual earnings); $24.90 (hourly)
Alaska: $41,873 (annual earnings); $25.00 (hourly)
Gen Z workers have the lowest median hourly earnings in Mississippi, at just $17.36 per hour, with annual earnings of $29,077.
Source: GOBankingRates
According to a new report from 360Learning, the majority of hiring managers attribute their challenges filling skills gaps to the fact that younger workers are quitting.
360Learning surveyed "thousands of talent managers, learning and development professionals, and workers across different levels in companies in the UK, France, Germany and the US."
About two thirds of hiring managers say younger workers quitting is "amongst the top reasons they can’t fill their skills gaps," according to a new report.
In the UK, 60% of hiring managers said younger workers quitting was the "biggest challenge they faced related to the skills shortage."
Read more via EuroNews
Three in four managers and business leaders say Gen Z-ers are more difficult to work with than workers from other generations, according to a new ResumeBuilder.com survey.
ResumeBuilder.com surveyed 1,344 managers and business leaders back in April 2023.
74% of respondents said they "believe GenZ is more difficult to work with than other generations."
49% say it’s "difficult to work with GenZ all or most of the time."
Asked why they find Gen Z-ers more difficult to work with, respondents' top reasons included lack of technological skills (39%), effort (37%) and motivation (37%).
65% of respondents said they "more commonly need to fire GenZers than employees of other generations."
"As a result of COVID-19 and remote education, it’s possible that GenZers lack the foundation to be more successful than older generations in entry-level positions. We know that with remote work and education, communication skills do not develop as well and people tend to work more independently. Hiring managers need to be cognizant of this when interviewing GenZers for positions. This generation may need more training when it comes to professional skills."
Read more via Resume Builder
The tradition of U.S. workers viewing an "unwillingness to take sick days as a badge of honor" is quickly becoming a thing of the past. The youngest generation of U.S. workers, in particular, has begun "calling in sick more than they used to." Employers say the trend is "costing them money."
One reason U.S. workers have been taking more sick days is likely the simple fact that, with COVID-19, more workers have been sick.
But experts say the uptick in workers using sick days may also be attributable to a "bigger shift in the way many Americans relate to their jobs."
Workers are increasingly using sick days for mental health.
Younger workers "feel more entitled to take full advantage of the benefits they’ve been given," according to executives and recruiters.
30% of white-collar workers with paid sick time have taken days off for that purpose, up from just 21% in 2019, according to payroll data from Gusto.
Young workers are "taking sick days most often, with their use rates jumping 45% from before the pandemic."
Business leaders, including HR leaders, say young workers used to take "one or two sick days a year," but are now taking "three to five."
Read more via Wall Street Journal
EY: 2023 EY Gen Z Segmentation Study
Deloitte: 2023 Gen Z and Millennial Survey
Adobe Future Workforce Study (January 2023)
McKinsey: How does Gen Z see its place in the working world? With trepidation (October 2022)
Monster: Creating Career Growth Opportunities to Attract and Retain Gen Z Talent (June 2023)
