Amid today’s increasingly unstable labor market, Generation Z is by far the most worried about losing their jobs, according to a new report from the American Staffing Association.
Among roughly 2,000 surveyed U.S. workers, 28 percent of Americans admitted to being worried about being laid off by the end of the year. However, that number was far higher among Gen Z, as 37 percent of 18- to 27-year-olds said they were worried about losing their jobs.
Millennials and Gen X saw roughly the same rate of anxiety, at 35 percent, while only 11 percent of Baby Boomers said they were worried about job security. The report also found that 40 percent of workers said their current debt is influencing their career decisions.
“Debt is playing a major role in shaping the lives and career paths of America’s workers,” said Richard Wahlquist, chief executive officer at the American Staffing Association, in a statement. “Increased levels of personal debt results in unhealthy levels of stress, damaged credit scores, limited mobility in the job market, reduced quality of life, and reduced prospects for the future for a growing number of individuals and their families.”
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, says Gen Z is up against both a slowing economy and a loosened labor market. This can be anxiety-provoking for the younger generation because they recently entered the workforce.
“They’ve grown accustomed to flexibility in the workforce, with remote jobs and a sense of work-life balance,” Thompson told Newsweek. “However, that is now changing as many employers across the country implement new work standards, pushing people back into the office. This shift could lead to tough decisions, with some employees being let go if they resist returning to in-person work.”
Some companies have hired too many people during the pandemic, and layoffs are imminent as the employers correct course.
Still, Thompson said Gen Z’s fears might not entirely reflect their actual economic reality.
“Many new startups and companies are being created by their peers,” Thompson said.
“However, the biggest challenge Gen Z faces is redefining what work-life balance means. They are wary of the work culture their parents experienced, where people worked for years without being respected solely to meet bottom-line targets. Gen Z wants work that is meaningful and makes a difference. They will continue seeking jobs that align with their purpose and values, which will remain a challenge in the evolving workforce.”
Magazine editors work in an office in Montrouge, France, on July 10, 2018. Gen Zers are most concerned about losing their jobs this year, according to a report.
GERARD JULIEN/AFP via Getty Images
HR consultant Bryan Driscoll said Gen Z is in a unique position, having entered the workforce during or after the pandemic. They’ve seen inflation soar and workforce promises disappear overnight.
“Their concerns are absolutely grounded in reality,” Driscoll told Newsweek. “Unlike Baby Boomers, who benefited from a more stable job market and stronger labor protections throughout their careers, Gen Z has only known a workforce that offers less stability, fewer benefits, and often no clear path for advancement.”
Gen Z has also been on the front lines of balancing work and personal life, especially when working from home is so common and hours can be stretched beyond their previous boundaries.
“Gen Z is up against a system that prioritizes profits over people, where layoffs and restructuring are commonplace, and corporate leaders would rather cut jobs than sacrifice their bonuses,” Driscoll said.
“They’re expected to be constantly available, all while being told they’re lucky to even have a job. Add in the crushing weight of student loan debt and skyrocketing living costs, and it’s easy to see why they feel like they’re standing on shaky ground.”
On average, Gen Z held roughly $16,000 in debt, according to a recent Experian debt study.
