Gen Z workers feel overworked and underpaid — but that's only part of the problem

Gen Z workers feel overworked and underpaid — but that's only part of the problem

Gen Z workers are stressed, overworked and anxious about their careers.

While social media trends such as 'quiet quit' have gained traction in the past year, ADP's People at Work 2023 survey, which surveyed thousands workers worldwide, revealed that Gen Z workers do their best to keep it together.

Gen Z is the age group that reports the most amount of stress. They report feeling stressed on average 13 times per week, compared to 10 times for other age groups. Around 50% of Gen Z employees don't feel safe in their job, which is the highest among all age groups.

The survey shows employers that they must address the challenges of the millennial generation if they want to build a long-term talent pipeline.

Nela Richardson is the chief economist of ADP. She said, "Gen Z has its struggles." If you examine who was most affected by the pandemic it was older and younger workers aged 65 and over.

Gen Z also reports more unpaid overtime compared to any other age group, with workers aged under 35 reporting an average eight hours and thirty minutes more work than they receive in pay. This is more than eight hours, three minutes and seven hours, 28 minutes reported by those aged 35-44 and 45-54.

According to ADP's survey, workers 55 years and older spend about 5 hours 14 minutes more per week than they are compensated for.

Just half of workers aged 18-24 expect to receive a raise in the next year, compared with two-thirds for workers aged 25 to 55. However, many will be disappointed at the size of the raise.

Young workers often found themselves in low-paying positions that were eliminated en masse at the beginning of the pandemic, only to be brought back later with more responsibilities or stressors.

Richardson explained that the stress was also due to their experiences in the workplace over the past two or three years. For many, this was their first time in the workplace. Can you imagine what a crazy labor market was like for a young person to enter?

She added that younger workers also benefitted from the robust economy, even though inflation has eaten away at their higher salaries and basic necessities like housing costs have skyrocketed. This summer, the long-standing moratorium on student loan payments will also end.

Gen Z is not only adaptable, but also flexible. Around 20% of Gen Z said that they had considered switching industries in the past 12 months. Meanwhile, 25% said that they were considering starting their own businesses.

Gen Z also works more than older generations. Gen Z is more likely than any other group to work two jobs. About half of Gen Z employees report working more than one.

Gen Z owners of small businesses are more likely than other owners to work on vacation. They do so at a rate of 81% compared to only 62%. Microsoft Corp. found that Gen Z is more likely to work outside the 9-5 workday.

We've said that it's important for employers and businesses to reach out to Gen Z workers who are entering the workplace as baby boomers retire and age.

Managers often complain about Gen Z's tendency to change jobs quickly, their open discussions on pay, and their refusal to compromise work-life balance. However, experts claim that the relative small size of the Gen Z generation is the true problem.

The Federal Reserve is trying to curb inflation by increasing interest rates. While the labor market may remain tight in the coming years, there are signs that the job market has begun to weaken from its post-pandemic heights.

According to the latest data from the Bureau of Labor Statistics, the number of job openings dropped to 9.6 millions on the last March day, the lowest level in almost two years. However, it was still higher than the levels before the pandemic.

As companies make cuts, the number of layoffs has risen to 1.2%. The quit rate has dropped to 2.5%, the lowest level since the pandemic started. This shows that fewer people are willing to leave their jobs.