Gen Z is a financially disadvantaged and socially misunderstood generation

As more Gen Zers enter the workforce, stark differences are now evident between their behavior and that of previous generations. Clashes are most significant with Generation X colleagues.

Gen Xers find wearing jeans acceptable as casual attire at work; for Gen Zers, its yoga pants. Gen Xers value work-life balance, while Gen Zers seek flexibility and work-life integration, choosing jobs that align with their personal values. Gen Xers prefer an organizational structure that follows a traditional hierarchy lead style, while Generation Zer prefers a collaborative and empowering leadership approach.

Gen Zers seek flexibility and work-life integration, choosing jobs that align with their personal values.

From my fellow Gen Xers, I hear a narrative of a bright future with the next generation entering the workforce given their digital skills, but also a stream of complaints about how this isn’t translating into real-world skills .

Gen Zers generally do not have enough income to sustain a decent living, which in turn affects their social behavior. In the US, for a Gen Zer to survive, their annual income would need to be at least $39,269. Here’s how I figure it out:

It might be possible to sustain the previous level of spending with $18.88 an hour as the minimum wage. But Gen Z also has a high rate of college education education. Along with the rising cost of higher education, this also meant that they had to take on significant debt to obtain a degree. The average US college debt for a Gen Zer is $20,900. For a recent college graduate, the loan payment would be $2,808 annually, calculating at an interest rate of 6.12% and a term of 10 years.

Adding the student loan payment to the life support income of $39,269, Gen Zers graduating from college in the US today should earn a minimum of $42,077 annually, or $20.22 per hour.

Even at this income, any unexpected expenses in the early years of their careers would drastically destroy their hopes of achieving the American dream. In addition, those in high-cost living areas will face additional cost-of-living pressure on this income, and the opportunity to build a good savings or retirement balance is minimal.

Unfortunately, the earning potential for Gen Zers in many cases does not allow for this. Average annual revenue report for Q3 2024 obtained from Lightcast for the 798 different occupations in the United States it is $53,071. In 199 occupations, the average annual salary is below what is needed for a new graduate to support their basic needs ($42,077). In another 200 occupations, the salary is below the national median of $53,071. The data includes earnings in high-paying professions such as doctors, airline pilots, lawyers and other professions that require a bachelor’s degree.

A Gen Zer graduate will almost certainly earn below the median income for any profession. Overall, the data suggests that, for the most part, Gen Zers entering the workforce are financially stressed right from the get-go and in a constant state of economic struggle to survive.

Not surprisingly, a 2024 study Gen Zers revealed that cost of living remains their top concern by a wide margin compared to their other concerns. The survey found that 56 percent of Gen Zers live paycheck to paycheck. Numerous scientific studies have shown an inverse correlation between the financial stress felt by an employee and their productivity, attention span and morale.

As employers look to hire Gen Zers and integrate them into their workplace, I urge them to first check their misconceptions and biases about Gen Zers. A perceived lack of work ethic, short attention span, and lack of loyalty may not be true traits of a generation, but rather symptoms of the large amount of financial stress the generation is experiencing.

Perhaps employers could reflect that working from home may not be a benefit that Gen Zers seek to avoid being at work, but rather to reduce their transportation and other costs associated with coming to work. work. And wearing yoga pants at work may not be a direct reflection of their professional dignity, but rather a perception of avoiding unnecessary costs.

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Only when we truly understand Gen Zers can we develop a truly productive and people-centered workplace.

And lest we forget, Generation Alpha is only a few years away.

Vishal Shah is the dean of the division of mathematics, science and health careers at the Community College of Philadelphia. The views expressed in this opinion piece do not represent those of the Community College of Philadelphia.