Not quietly quitting, millennials live paycheck to paycheck

You’ve heard the stereotypes about millennials and Gen Z in the workforce. There’s the old trope that they spend too much money on avocado toast or the newer one that they waste too much time on TikTok, and of course the underlying assumption that the youngest employees lazy or not hardworking. But these beliefs could not be further from the truth. It may seem like they are out of work because they are struggling to make ends meet and work after hours that their employer doesn’t know about. After all, 22,000 workers from around the world is a pretty big sample size.

Deloitte, one of the “Big 4” consulting firms and an authority on workplace research, conducted a large global survey of Gen Z and millennials in November and December, and found that half of them report that they live from paycheck to paycheck. Finding the bills harder to pay with just one source of income, 46% of Gen Zers and 37% of millennials have added a part- or full-time gig in addition to their main job. This young generation not only works hard for money, they work overtime to make ends meet and meet financial problems. That’s far from “silent pause.”

Listing the high cost of living as their top concern for the second year in a row, Gen Z and millennials also cited unemployment and climate change as other top concerns. “The cost of living has been their biggest concern for two years in a row now, and finances have always been their main driver of stress,” said Deloitte’s global people and affairs leader Michele Parmelee. . luck. “Interestingly, these concerns tend to be consistent across both generations, so it’s not just a matter of Gen Zs who are young and just starting out in their careers.”

Popular Side gigs include selling products or services online, working for a food delivery app or transportation service, “pursuing artistic ambitions,” and being a social media influencer. Parmelee also said that many cultural markers of the younger generation seem to be rooted in economics and just trying to save money in a less-than-affordable world. These generations “are also making lifestyle choices that help save money and protect the environment such as buying second-hand clothes and avoiding fast fashion, choosing not to drive a car, and eating a vegetarian or vegan diet,” he explained.

The youngest employees are not the only ones who feel theirs the wallet is a bit tight. About 64.4% of all US adults said they had no money left at the end of the month last December, according to PYMNTS’ report. There is a stroke of optimism though, as 40% of those surviving paycheck to paycheck believe their wages will increase to combat the high cost of living. The younger generation is also cautiously positive about the future, as Deloitte found that 44% of Gen Z and 35% of millennials expect their personal finances to improve within the next year.

To be sure, few Americans are living paycheck to paycheck with a large rainy day fund under their belt. People with emergency savings accounts have an average balance of $16,800, per year 2023 New York Life Wealth Watch Survey. Gen Z has an average of less than $10,00, and millennials have $14,000. During the pandemic, many did build wealth and large savingsno wonder when restrictions end and life goes on (with a high cost of living to boot), many dipped into their savings. However, it does not feel good, as many report greater financial anxiety despite having greater amount of wealth than before the pandemic began. And even with some money saved, this younger generation has smaller savings accounts than their older counterparts, exacerbating the need to find another job.

Perhaps because of the fear of unemployment and financial stress even with two jobs, respondents who are concerned about the economic precarity report feel nervous about asking for a promotion or looking for a new job. Low pay remains the main reason young employees leave their jobs, although Deloitte found that workers with less than 2 years in their job are more likely to report surviving salary to salary than those who have been in their position for 5 years. Money or the worry about the lack of it keeps the younger generation from their dreams, “Because of their worries about the economy, more than half or more worry it will be more difficult or impossible to ask for a raise , get a new job, receive a promotion, and even start a family or buy a house. It’s clear that these financial worries are affecting their career and personal life,” added Parmelee.

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