2020 Unemployment Effects of COVID-19 on Generation Z
On September 29th, 2008, the Dow Jones Industrial Average dropped over 775 points, which was, until recently, the largest point drop in history. This stock market crash spiraled the country into a great recession that would make tremendous impacts worldwide. For the Millennial generation, those born between 1981 and 1996, this recession had a tremendous impact on their lifestyle. For those older Millennials, they stared down at a job market coming out of college that was truly dreadful. While job shortages and unemployment impacted every part of the workforce, Millennials were affected tremendously. Those between the ages of 16 and 24 faced a high of 19% unemployment.
Source: Investopedia, photo from Advisor Perspectives
This time, things are not that different (maybe even worse)
Generation Z, born from the late 1990s to early 2010s, is in precisely the same financial situation, or potentially even worse. The unemployment rate is projected to be anywhere from 15% to 32%, paralleling the unemployment rate following the Great Depression. That 32% is just an average between age demographics. Typically, younger students and recent graduates face higher rates, as seen following the 2008 recession.
Furthermore, many companies facing financial struggles as a result of the COVID-19 pandemic are cutting entry-level jobs. Many GenZ college students have already had their internships cancelled, or in some cases their job offers rescinded for positions after graduation.
This has two effects.
The immediate and obvious, that GenZers will be facing much more competition and extremely high rates of unemployment coming out of college. The second, less obvious effect, will be seen 3-4 years post economic recession. When the economy recovers and the unemployment rate begins coming back down, the Generation Z graduates will have been out of industry, perhaps unemployed, and competing for positions with those coming directly out of college and industry-ready.
So what can Generation Z do?
Research cites that 41% of GenZers plan on becoming entrepreneurs. If there are any positive results of COVID-19, the ability to be self-reliant will likely be one of them. GenZers are using social distancing to do incredible things. While things like becoming “Tik-Tok famous” may not provide immediate dividends, there are true opportunities that come with the ability to influence in this age.
Our recommendation for GenZers is to use this time to build value by generating alternative revenue streams, and learning skills that will be inarguably valuable. Learn to code, to design websites (no-code too), to create art. Build things. These tangible results will not only develop your skills, but help you stand out should you seek employment among high competition.
We’ve all used the excuse “I’d love to learn that/do that, but I just don’t have enough time”. Well, now you do. In all honesty, GenZ will be facing a tough job market. Do something today to help yourself tomorrow.
This article is an opinion piece on the future of employment for Generation Z as a result of the Coronavirus global pandemic.