How Is Gen Z Affecting The Economy?
Success Quarterly is a tech and business blog that focuses on the intersection of Silicon Valley and Hollywood, including technology, business, mobile, entertainment, media, and related topics.
As we all know, the economy is in a bit of a slump right now! This has major implications for those who are actively involved in the economy (business owners, employees, investors, etc.), as well as students who are dependent on the income generated from studying business or economics.
Overall morale is down and people are less willing to spend money due to fear of not finding employment soon. With fewer dollars being spent, the economy is experiencing a slowdown.
Gen-Zers, or “Generation Zero” as some call them, seem to be especially conscious about how the economy is performing. They grow up immersed in technology, which makes it easy for them to use social media to research what industries are struggling and why.
They also live with a sense of entitlement because parents emphasize education at every turn. Kids feel they should never lack resources nor opportunities, so when they do, there is always someone else getting left out.
In fact, studies show that one third of teens don’t believe their generation will better than anyone before them, while another third think hard work won’t pay off unless you are rich. Only one third believe things will get easier for future generations.
Gen Z is the largest generation ever
As we mentioned earlier, there’s one major difference between today’s teens and previous generations- they are almost all educated in an era of technology. In fact, according to statistics gathered by BusinessDaoGroup, nearly half (46%) of teenagers aged 16–24 now have at least one smartphone as opposed to only 28% in 2011!
This has significant implications for how they interact with and influence the economy. Not only do most kids use social media, but also apps such as Snapchat that feature disappearing content mean that even more quickly than before, people can easily destroy or erase pieces of information about them. This is particularly concerning when you consider that over 70% of Americans under 30 own smartphones!
It seems like every day we read about another example where someone posted something embarrassing online and got punished for it. Or heard of some student who spent hours writing an essay and then had to start completely anew because their phone took a few photos of them studying and then deleted them. All of this wasted time means they could have been earning money, or perhaps finding employment after college.
They are more digitally fluent than any generation before them
Generation Z, also known as millennials or teens born in the late 1990s to early 2000s, are making waves among business professionals. With their increasingly accessible use of technology, they have become one of the largest consumer groups in America.
They’re also one of the highest spending generations ever! Recent studies show that gen-Zers spend almost twice as much money per week as older adults do – up to three times more if you factor in what area of the market they’re part of.
This higher average weekly spending comes from things like smartphone bills, entertainment purchases (like Netflix!), and convenience fees such as for online shopping accounts.
They grew up with technology
Technology has exploded in our daily lives, making it possible to interact with people anywhere and at any time. With every kid having their own smartphone now, this tool is becoming more prominent as they find ways to put it to use.
This generation has never known life without technology, which makes sense since we have been using it for almost everything since middle school.
Since most teens can easily access tech, there are some who feel that it is not necessary to go into college, because you can always find work via online job applications or through social media.
Another downfall of these teenagers is how connected they are to others. Due to constant exposure to digital information, they develop an over-connected mentality where they think everyone should be keeping each other updated constantly.
When students do decide to pursue additional education, it is usually very expensive due to tuition costs and fees. Many young professionals are no longer spending money on educational materials due to free resources available via Google and YouTube.
They are more online than any generation before
Recent studies show that Generation Z (those born between 1995 and 2010) is now the largest generational group in America! With over 72 million members, this makes them the biggest group in our country.
What many people don’t realize about these young adults is how much they use technology. Technology has become such an integral part of their daily lives that we can call it a “habit-forming tool.”
It also seems like most teens today have at least one phone with them at all times. This isn’t too surprising when you consider that almost every kid under age 18 owns a smartphone.
Overall, research shows that Internet usage among adolescents has been steadily rising for the past five years. In fact, a recent survey found that 78% of teenagers ages 13 to 17 own cell phones.
This means that even if they aren’t using the apps yet, they will very soon. And when they do, there are plenty of ways companies can market to them.
They are less likely to get a job and more likely to start a business
Recent studies show that Generation Z is coming of age with some troubling trends. Among them, they’re much less likely to consider their own career opportunities and instead look to others for guidance, in part because they perceive there aren’t very many openings available.
They also believe that employers don’t have enough jobs to offer, so they think it isn’t worth applying for one. And when they do apply, they tend to accept whatever position is offered, even if it doesn’t match what they want to do.
All this contributes to an attitude known as “employment paralysis,” where people just stay at work rather than looking for something better. When no one seeks out employment, we end up with a situation where not too many people have jobs, which puts additional pressure on those who do.
They are more optimistic about the future than any generation before them
As I mentioned earlier, gen-zers are an increasingly important part of the economy. More education means higher income as they transition into the workforce.
As we know, the workplace is full of millennials — those who are in their twenties or early thirties.
These workers are entering the job market at a time when there are not many openings due to a shrinking labor pool and a growing population. This has created what some call a “jobless” environment.
Gen zeros are being trained for these career shifts by employers that want to retain their talent, but it may be difficult to find employment within their budget.
Many experts believe that this overproduction of employees will last well into 2020!
So how can business owners help mitigate the effects of the job gap? The first step is educating yourself on different strategies.
Second, evaluate whether your current practices are cost effective and efficient. Are you offering enough compensation? Do you offer adequate benefits? If so, why don’t people with similar jobs already do the same thing?
Third, look for ways to downsize your operation. Can you survive with less money? Or would another company give you work that you can supply to them?
Fourth, think outside the box when looking for new sources of revenue.
They are more likely to get an education
Generation Z, also known as millennials or teens, make up one of the largest generations in our society. With each passing year they enter work with less experience than previous generations and have lower levels of literacy and educational qualifications.
As young adults, this generation is spending their money mostly on entertainment products and services, such as Netflix, YouTube, and apps like Snapchat that cost per use fees. More importantly, these individuals don’t save very much money due to the relatively low income they earn.
In fact, according to Business Insider, only 8% of people aged 15-24 owned a savings account compared to 33% for those over 24. This means that even if they wanted to invest in stocks and properties, they wouldn’t have enough saved up to do so!
It seems clear then that investing in the stock market isn’t something most members of Generation Y feel confident doing.
They are more likely to get a mortgage
According to recent studies, young people today seem to be experiencing an epidemic of over-borrowing and debt. This is particularly true for Generation Z — those who came up through social media and technology.
This group has what some call “influencer culture” where they learn about money from watching their peers spend money. It seems that even though these individuals say they don’t want a large house or a lot of expensive things, they feel obligated to go along with the crowd and maintain a status quo lifestyle.
They may also be exposed to excessive amounts of marketing which encourages spending. A study found that one in three teens use the word ‘enjoyable’ when talking about shopping.