Is Gen Z Rich or Poor? 4 Reasons No One Seems To Agree
Members of Generation Z, those born between 1997 and 2012, are sometimes criticized by others as being entitled and lazy. Yet, they’re making more money when compared with their older millennial and baby boomer counterparts.
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The Economist reported that both millennials and boomers were poorer at this stage in their lives than Gen Zers are today.
At the same time, the pandemic spurred high levels of unemployment and caused record inflation which persists today, both of which have made it much more difficult for the younger generation to succeed in the present economy. There are mixed feelings over whether Gen Z is considered rich or poor these days and here’s why.
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4 Reasons Why No One Can Agree Whether Gen Z Is Rich or Poor
Some say Gen Z is rich while others say they’re poor. Here are four reasons which explain the confusion, according to New Trader U and The Economist:
1. Gen Z Has Faced a Significant Economic Downturn
Compared with older workers, Gen Zers were disproportionately affected by the economic downturn as a result of the pandemic.
As young Gen Zers were starting to enter the workforce, the COVID-19 pandemic spurred a global lockdown which led to significant unemployment, widespread business closures, and unprecedented economic disruption. Many are still reeling from the pandemic’s economic impacts.
These factors have made it more challenging for Gen Zers to get ahead. While millennials faced similar struggles because of the 2008 Great Recession, they’ve also had more time to recover from its impacts as compared with Gen Z’s more recent post-pandemic economic struggles.
2. Gen Z Faces a Challenging Job Market
The pandemic resulted in serious job losses and fewer work opportunities overall.
The decrease in entry-level jobs, a lack of job security, more layoffs, and the fading reality of the traditional career path have all forced the younger generation to find new ways to earn a living.
Today, many Gen Z workers juggle multiple part-time jobs and/or freelance gigs to pay the bills — without the security of employer-provided benefits such as a retirement account and health insurance.
3. Gen Z Has an Overall Higher Income Than Their Millennial and Baby Boomer Counterparts
Despite economic challenges and unconventional ways of working, Gen Zers are earning more money than older generations.
How much more you might ask? Data shows that the typical 25-year-old Gen Zer today has an annual household income of over $40,000, more than 50% above what boomers earned at the same age — and about 25% more than millennials. That being said, the cost of living is much higher today than when millennials and boomers were the same age.
4. Gen Z Has Seen Record Wage Growth
It’s highlighted that in the U.S., hourly pay growth among 16 to 24-year-olds recently hit 13% year-over-year, compared with just 6% for workers aged 25 to 54. Taking these figures into account, Gen Zers have more income — and more money to spend, on average — than both millennials and boomers.
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This article originally appeared on GOBankingRates.com: Is Gen Z Rich or Poor? 4 Reasons No One Seems To Agree
