Gen Z Defies Expectations with Economic Surge Despite Challenges

Generation Z, also known as Zoomers, is experiencing a remarkable economic surge that is defying expectations. Born between 1997 and 2012, this rapidly growing demographic is now entering the workforce in large numbers, with Gen Z workers soon to surpass Baby Boomers in the average American workplace.

Unlike the preceding Millennial generation, which faced high youth unemployment during the global financial crisis, Gen Z is thriving in tight labor markets. Across the rich world, youth unemployment is at its lowest level since 1991, and young workers are seeing rapid wage growth, outpacing their older counterparts. This economic success is changing Gen Z's relationship with work, with more choosing practical fields of study and quitting jobs to find better-paying opportunities.

The financial power of Gen Z is evident in their spending habits, such as the high demand for tickets and merchandise at concerts by popular Gen Z artists like Olivia Rodrigo. However, some Gen Zers protest that their higher incomes are a mirage due to the high costs of college and housing. Data shows that in 2022, Americans under 25 spent 43% of their post-tax income on housing and education, slightly below the average for under 25s from 1989-2019.

While the expectations of middle-class life have inflated, Gen Z is still able to afford things like single-family homes, multiple vacations, and upscale restaurants, unlike previous generations at a similar age. This is partly due to intergenerational wealth, as some Gen Zers receive help from their Gen X and Boomer parents to buy property in expensive areas.

Gen Z is also gaining political and business influence, with over 6,000 Zoomer chief executives and 1,000 Zoomer politicians. Despite some research suggesting Gen Z is defined by anxiety, the generation is distinguished by its strong financial performance.

Why this matters: Gen Z's economic surge has broader implications for the workforce and consumer spending. As this generation gains more financial power and influence, their priorities and behaviors will shape the future of work and the economy.

Gen Z's economic success is transforming the generation's outlook on work and their place in society. As Gen Z worker Olivia Johnson, 22, told the New York Times, "I feel like I have more options and opportunities compared to my parents at my age. It's an exciting time to be starting my career and building my financial future."

Key Takeaways

• Gen Z, born 1997-2012, is economically thriving, outpacing older generations.
• Gen Z has lower youth unemployment and faster wage growth than Millennials.
• Gen Z's higher incomes enable spending on concerts, housing, and vacations.
• Gen Z's financial power is transforming the workforce and consumer trends.
• Gen Z feels more optimistic about their career and financial future than prior gens.