Glimpse Into How Gen Z Will Shake Up The Workforce

Since the pandemic, the national workforce has taken a significant hit with many workers deciding to leave their jobs and now the next generation of the labor force is ready to fill those positions.

Private employers added 278,000 jobs in May, according to the ADP National Employment Report, giving a wide array of jobs for recent college graduates. While the Bureau of Labor Statistics reported 283,000 new private-sector jobs.

The ADP Research Institute released an article gathering data from both ADP payroll data and the People at Work 2023 global survey to better comprehend how the workforce will be affected by the influx of new Gen-Z job seekers.

According to ADP Pay Insights data, for workers, aged 16 to 24, annualized pay growth peaked at 20 percent last spring but has cooled to 15 percent. Further, the average annual pay for all workers was $57,300 in May. The average earnings for Gen Z men are $32,600 and women only $22,700.

Another key takeaway from the research showed how burnout in the workplace for Gen Z workers can raise challenges. Workers aged between 18 and 24 are putting in overtime and not getting paid provided 8.5 hours of free work, according to the 2023 People at Work survey.

Stress is a common trend for many Gen Z workers and their feeling toward their employers. More than half of Gen Z workers reported feeling insecure about their jobs, compared to 24 percent of workers 55 and older.

The Gen Z workforce will only continue to rise in the job market and employers will need to adapt just as much as young job-seekers in order to retain their worker engagement and productivity.

With a new job comes new responsibilities and Gen Z is aware as 50 percent more likely to be open to gig work than other generation workers, and more than three times as willing than people 55 and older.

Posted June 12, 2023.