Monday, April 29, 2024

Gen Z richer

Despite their lack of a "play-based childhood" (last week's posts), somehow Generation Z has turned out to be better off at their age than millennials or baby-boomers were at the same age.

Globally, youth unemployment is way down. When millennials came of age in the U.S., they faced the economic downturn of a recession with reduced opportunities for jobs and careers. Gen Z youth are starting their careers now in different circumstances. It's more of a workers' market, with many jobs going un-staffed for lack of laborers. 

Hourly pay increases for American youth 16-24 years old recently hit 13% (year over year), compared to just a 6% increase for workers 25-54 years old. 

They pay a little less of their income for housing and education compared to what millennials did at their age, and their home ownership rate is higher.

In short (according to The Economist),"In financial terms, Gen Z is doing extraordinarily well."

from The Economist

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