It's a hot job market, unless you're Gen Z
Gen Zis having a difficult time becoming established in today's economy.
- The pandemic-induced recession left lasting scars for Gen Z.
The job market may be reigniting, but that doesn't mean Gen Z graduates are having an easy time joining the workforce.
According to the Federal Reserve Bank of New York, 41.3% of recent college graduates, those aged 22 to 27, were employed in a job that did not require a college degree in December, which is up from 40.6% in 2020.
"This rise in
More and more college graduates are having a difficult time establishing themselves in today's economy. As they enter the workforce, they're straying away from their degrees and working in roles that don't require higher education. This means they're being offered lower wages, which could impact their financial health in the long term.
"Whatever the cause, these trends will have profound long-term economic consequences, both for these workers and the U.S. economy as a whole," Pardue said.
The pandemic could have a lasting impact on Gen Z
The economic fallout from the Coronavirus
In the professional services sector,
"The pandemic-induced recession left lasting scars on the graduates of the class of 2020, who struggled to find high-quality
Underemployment could impact Gen Z's financial future
As the underemployment rate grows for Gen Z, it will likely take the group a longer time to amass wealth.
A study from the Brookings Institution, claims that low-wage employment "leads to a cycle of attrition and replacement that pushes the labor market toward a less-than-optimal equilibrium." Simply, if employers do not invest in their workers, it hinders the ability of employees to progress in their careers. This is because
"These underemployed workers will likely see slower earnings growth over the entire course of their careers, and the inability to match highly-skilled college graduates to the jobs that require those skills will significantly hamper the long-term growth of the U.S. economy as well," Pardue said.
As the pandemic creeps into its third year, Gen-Zers will continue to face struggles navigating the professional world. As they seek out employment, where they choose to work and for how much, will determine their financial futures.
Are you a Gen Z graduate who is having a hard time finding a job in your degree? Reach out to this reporter at email@example.com to share your story.
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