- The Great Recession has left an indelible mark on millennials, including fewer job opportunities, lower savings, and a reluctance to buy homes.
- In comparison to earlier generations, millennials are buying homes at a faster rate.
- Many millennials graduated during the financial crisis of 2008, leaving them with significant student loan debt.
Who is the hardest hit by the recession?
8 industries with the best job security during a downturn
- Health-care services. People get sick and require medical care regardless of the state of the economy, thus the demand for health-care occupations is fairly stable, even during a downturn.
Why are millennials having financial difficulties?
That wasn’t because a generation of more than 70 million people couldn’t pull themselves up by their bootstraps and get to work. It’s because, as studies reveal, it’s had a string of setbacks: Stagnant salaries, rising student loan debt, and rising medical and housing costs have combined to leave millennials with less disposable income than prior generations.
Those without a college diploma have even less of a chance of landing a well-paying job. According to Pew Research Center, households led by millennials with a bachelor’s degree or above earned a median adjusted household income of $105,300 in 2018. Those led by high school graduates earned an average of $49,363 each year. At the same age, baby boomers without degrees earned an average of $51,287 to $54,026 in 2017 dollars (those with degrees earned an average of $80,552 to $95,182 in 2017 dollars).
What impact has inflation had on millennials?
Inflation is wreaking havoc on everyone’s pocketbook, but millennials are particularly hard hit.
That’s according to a Wells Fargo analysis that looked at the Consumer Expenditure Survey to discover which cohorts had the biggest cost-of-living increases. According to an age split, millennials had the most inflation: 6.8% for those aged 25 to 34 and 6.9% for those aged 35 to 44. (the latter also includes the youngest Gen Xers).
Inflation appears to have disproportionately harmed younger generations. With a 6.7 percent increase in pricing, Gen Z did not do much better. With a 5.8% increase, the 65-plus age group, which includes baby boomers and the Silent Generation, suffered the least.
The fact that millennials are the worst hurt by price spikes has a lot to do with their spending patterns, since they tend to spend more on big-ticket things due to their present stage of life. It’s the latest example of how the economy has failed this generation, which has already seen two recessions and significant student loan debt before turning 40.
Millennials have been through how many recessions?
Before the age of 40, Millennials experienced two recessions, the wounds of which have deepened a generational split.
Which industry is immune to the downturn?
Healthcare, food, consumer staples, and basic transportation are examples of generally inelastic industries that can thrive during economic downturns. During a public health emergency, they may also benefit from being classified as critical industries.
In a recession, who suffers the most?
Recessions wreaked havoc on the economy and society as a whole. They result in the layoff of a huge number of workers and make it difficult for them to find new jobs.
What do millennials hope to achieve in life?
Professionals born between 1980 and 1999 are known as millennials. They are the first generation of digital natives, and they are more energetic, adaptable, and ambitious than previous generations. They’re well-educated, and they’re looking for more than simply a job. They are looking for a job. When it comes to attracting and retaining Millennial talent, there are four characteristics to consider:
The potential of job advancement is something that really makes a Millennial professional tick, according to a recent survey from professional recruiting agency Robert Walters. 91 percent of respondents polled responded that in order for them to be content at work, their company required to provide prospects for rapid professional advancement. Professional stagnation does not sit well with millennials. Furthermore, they place a premium on personal growth and employer feedback. Sixty percent of those polled desired feedback every one to three months. Management should be interested in millennial professionals. They demand more help from management when it comes to expanding their capacities and skills, and they are motivated by a desire to excel at work.
Professionals in the millennial generation are less inclined than earlier generations to put up with terrible working conditions. If they are unsatisfied with their current job, the internet and social media can assist them in changing careers or finding a new company. According to Robert Walters, 75% of those polled believe that having a healthy social life at work is crucial, and that the workplace should be interesting and exciting. They like to interact with coworkers on a regular basis and appear to live by the motto “work hard, play hard.” According to the Robert Walters research, over half of professionals claimed that a bad company culture was a major source of disappointment when starting a new work. As a result, keeping Millennial professionals requires a favorable work environment and a coherent organizational culture.
Millennial professionals are not driven by egoism, but rather by their own personal development and social stimulation at work. Globalisation, growing levels of participatory politics and pressure groups, as well as the ease with which people may use the internet, have exposed ethical flaws in supply chains all around the world. As a result, young professionals are well informed on unethical commercial practices. Many students participate in altruistic volunteering and charity work during their university years, and they continue to have a benevolent mindset once they enter the employment. As a result, they are more likely to be socially driven and conscious, viewing true Corporate Social Responsibility as a must-do rather than a nice-to-have. Because they are more conscious of social issues, they seek for companies that reflect their own personal values and ideas. What the organization stands for and how it performs in the international community is a significant deciding factor for Millennials when it comes to whether or not they can work there.
Family values motivate millennials, and while they are ambitious and career-oriented, they recognize that work is not the be-all and end-all. Many Millennials began their careers in the midst of a recession, and they understand that the concept of a “work for life” has faded into obscurity. They understand that a university diploma does not guarantee a job. As a result, Millennials place a great priority on the stability of family life and family values, as well as the success of their own lives. One of the best things about their employment, according to 90 percent of Millennials polled by Robert Walters, is policies that support a good work-life balance. Creating a ‘work family’ for young professionals is one method for companies to tap into these familial values and need for work-life balance.
In essence, Millennial professionals are aware of their value. They understand that their hard work and dedication are deserving of recognition, and they are willing to confront employers who fail to recognize their potential. If you want to recruit and retain Millennial professionals, you should focus on developing genuine relationships with them, taking a genuine interest in their professional development, striving for mutual respect and understanding, and looking out for their best interests. You should also provide a variety of career growth chances and paths.
What do millennials prefer to buy?
According to Statista data, online shopping was the most popular activity among millennial internet users as of May 2020. Almost all of the purchases were made online. They cited fast shipping and product options as the primary reasons for preferring online shopping versus in-store shopping. Other benefits include the option to read other people’s reviews and the convenience of not having to leave your house.
What are the issues that millennials face?
Wages have failed to keep pace with inflation. When adjusted for inflation, the millennial generation earns less than previous generations, and also confront other financial issues such as enormous college loans.
The greatest discrepancy is seen among those who work in minimum wage positions. Since 2009, the federal minimum wage of $7.25 per hour has remained unchanged. Even in states where the minimum wage is higher, you’d have to work two full-time jobs to make ends meet.
These stagnant salaries, when combined with an increase in the cost of living, are devastating. Many millennials find it difficult to pay their bills and debts, let alone accumulate wealth or save for retirement. According to one survey, 63 percent of millennials would struggle to pay $500 for an unexpected bill, and only 6% believe they earn significantly more than they require to cover their basic living expenses.
It was usual for earlier generations to work for the same employer from their twenties till retirement. The majority of millennials will not have this level of constancy in their jobs.
According to a Gallup poll, 21% of millennials have changed employment in the last year. Only half of the respondents stated they were certain that they would be working for the same company in a year. For millennials, changing jobs every few years is the norm because it gives them the best chance to advance their careers.
Many employees believe their employers don’t care about them, thus they don’t demonstrate much loyalty to their employers. Regardless of their current working condition, some younger people are always looking for work. This uncertainty and instability can be quite distressing.
Millennials’ wages haven’t kept pace with rising housing expenses on average. According to Student Loan Hero’s data, millennials purchasing homes today will pay 39 percent more than those purchasing homes in the 1980s. When you factor in their student loan debt, it’s easy to see why millennials are less likely to buy homes than previous generations.
The same issue affects renters. The average rent in today’s world is over $1,300. Inflation-adjusted, Gen Xers spent $850 on average, while the Silent Generation paid less than $500. For many people, saving for a down payment feels like a pipe dream when practically all of their income goes toward rent and school loans.
Taking care of aging parents isn’t just a problem for millennials. As individuals of this generation enter their 30s and 40s, their parents will become more dependent on them. According to a survey by Caring Advisor, about half of millennials are already caring for their parents, and many more are preparing to do so.
Nursing homes, adult day programs, home health services, and other professional services can soon become prohibitively expensive. Many people would rather live with their parents and be cared after by them. Returning to your parents’ home or having your parents move in with you is a tremendous life adjustment, and caring for them is a huge responsibility.
It’s no wonder that millennials are stressed because of all of these financial, economic, and professional issues. According to a survey conducted by Bensinger, DuPont & Associates, over 20% of millennials experience sadness as a result of their work.
It’s difficult to say how millennials’ mental health compares to that of previous generations. Despite the fact that mental health illnesses are still stigmatized, younger individuals are more upfront about their struggles. In recent years, more people have spoken out about their experiences with mood disorders, anxiety disorders, and other mental health issues than ever before.
Financial difficulties, according to some, are the main reason behind mental illness in the United States. Others argue that social media has a harmful impact on the mental health of young people because it encourages constant comparison with others. Whatever the reason, mental health is clearly a major worry for many people.
What is the average Millennial age?
What distinguishes Generation Y from Generation X? And welcome to the party, Gen Z and Gen A! What is the deadline? What is the average age of each generation? Is there a significant difference between them?
You’re not alone if you’ve ever felt befuddled by this “alphabet soup” of names. When you consider that Millennials will be the highest-spending group in 2020, with a predicted $1.4 trillion in expenditure, you’ll understand why.
And, despite the fact that their current wealth has been dragged down by not one but two “once-in-a-lifetime” economic crises during their most formative years, Millennials are on track to inherit more than $68 trillion from their Baby Boomer and early Gen X parents by 2030, potentially making them the wealthiest generation in American history.
Generation Z isn’t far behind, with a projected income of $33 trillion by 2030 more than a quarter of all global GDP and the ability to outspend Millennials the next year. 3
Last but not least, there’s Generation Alpha, which is the designation given to the world’s youngest children by sociological researcher Mark McCrindle. By 2025, there will be over 2 billion Generation Alpha individuals all across the world.
Regardless of how you slice the data, the younger generations have never been more important to the future of your financial institution.
You won’t get a penny of their money unless you know who they are and what they want.
People grow older. Birthdays stay the same.
When it comes to naming generations, one of the most prevalent sources of confusion is their age. The birth year, not current age, is used to identify generational cohorts (loosely). The explanation for this is simple: generations age in groups. If you think of Millennials as college students (18 to 22 years old), you’re not only out of date, but you’re also thinking about a stage in life rather than a generation. Millennials are no longer in college, and Gen Z now dominates that period of life.
Another example is a Generation X member who turned 18 in 1998 and is currently over 40. He or she is concerned about a wide range of topics during this period and is receptive to a new set of marketing messages. You will always be a part of the generation into which you were born, regardless of your age.
Baby Boomers: People born between 1946 and 1964 are referred to as “baby boomers.” They are currently between the ages of 57 and 75. (71.6 million in the U.S.)
Gen X was born between 1965 and 1979/80 and is now between the ages of 41 and 56. (65.2 million people in the U.S.)
Gen Y, often known as Millennials, are people who were born between 1981 and 1994/6. They are currently between the ages of 25 and 40. (72.1 million in the U.S.)
Gen Z: The newest generation, born between 1997 and 2012, is known as Gen Z. They are currently between the ages of 9 and 24. (nearly 68 million in the U.S.)