USA 
United Kingdom
Young workers from Generation Z are facing significant challenges in the US labor market, with limited job openings and rising costs contributing to financial strain.
Many Gen Z job seekers are encountering conditions that resemble a recession, despite the broader economy maintaining stable growth.
The unemployment rate for those aged 20 to 24 climbed to 8.3% by early 2024, a sharp 2.8 percentage point increase from its low in April 2023. In contrast, the unemployment rate for prime-age workers aged 25 to 54 rose only marginally, from 3.1% to 3.5%. Historically, such a sharp increase in youth unemployment has been linked to economic downturns.
This time, however, the Federal Reserve has refrained from aggressively cutting interest rates due to sustained economic growth and persistent inflation.
Economic pressure and career stagnation
Hiring rates in the private sector remain sluggish, comparable to conditions seen in the early 2010s during the post-recession recovery period. That stagnation has particularly affected Gen Z, whose early career opportunities have been hindered. As a result, 80% of Gen Z professionals in white-collar roles report difficulty finding better job prospects, according to a recent Harris Poll conducted for Bloomberg News.
Concerns about artificial intelligence are adding to the uncertainty. Entry-level jobs in sectors such as law, consulting, media, marketing technology, and creative industries are seen as particularly vulnerable to automation, according to Brookings Institution fellow Molly Kinder. Many of these roles involve repetitive tasks that generative AI tools are designed to handle efficiently.
Financial burdens and changing spending habits
Outside of employment concerns, Gen Z faces rising financial pressures. Credit reporting agency TransUnion found that credit card balances for individuals aged 22 to 24 were 26% higher in 2023 than for the same age group a decade earlier, adjusted for inflation. Additionally, home ownership has become increasingly difficult, with the median age of first-time buyers reaching 38 years, up from the late 20s in the 1980s.
With these financial pressures and fewer advancement opportunities, many Gen Z workers are shifting toward a "live-for-today" mindset. Spending on experiences like concerts and travel has increased, sometimes requiring young people to take on debt to maintain their lifestyle.
While some economists warn of a potential recession, the Federal Reserve has signalled that immediate rate cuts are unlikely. Without a shift in economic policy or improved hiring rates, Gen Z's struggle to establish stable career paths and financial security may persist well into 2025 and beyond.
The 2026 Employee Engagement Impact Report
Terryberry surveyed 1,000 full-time U.S. employees to understand how engagement programs affect retention, motivation, and performance—and what separates effective programs from those that fall short.
Our employee engagement survey report found:
- 91% of employees agree that their workplace engagement programs would be more effective if they were better connected.
- 70% of employees with well-connected workplace engagement programs say those programs have significantly influenced them to stay at their job.
- Remote employees are nearly 20% less likely than hybrid and in-office employees to say their organization’s engagement programs work well together.
- 59% of employees experience at least one obstacle to participating in workplace engagement programs.
The report breaks down key findings across industries and work environments, with practical takeaways to help HR leaders strengthen program participation and maximize the impact of their engagement initiatives.
Gen Z's wealth transfer
Despite their current financial struggles, however, Gen Z is poised to become a dominant economic force in the coming decades. A recent Bank of America report projects that the generation’s total income will rise from $9trillion in 2022 to $36trillion by 2030, eventually reaching$74 trillion by 2040. By 2035, Gen Z is expected to be both the largest and richest generation, accounting for 30% of the global population.
This anticipated wealth shift may feel distant for many young workers grappling with high rent and limited savings. Inheritance could, however, provide some relief. Research from Cerulli Associates suggests that $84trillion in wealth is set to transfer from seniors and baby boomers to younger generations by 2045. While most will go to Gen X and millennials, 38% of Gen Z expects to receive an inheritance.
As Gen Z’s financial influence grows, they are expected to reshape consumer behavior, with trends such as changing diets, reduced alcohol consumption, and evolving savings and housing priorities redefining what it means to be a US consumer, according to Bank of America.
