Mind the Gap: Is an easy future only a dream for young people?

CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

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Did you ever play the game M.A.S.H. in school? It’s an American kids’ game where you write down a list of possible options for your future in a few categories—where you’ll live, who you’ll marry, what job you’ll have, etcetera—and cross them off until you’re left with your one true fortune.

M.A.S.H. (Mansion, Apartment, Shack, or House) was already an old game when I started school in the mid-2000s, and most Gen Zers will probably never learn it. But as my generation begins to think seriously about the future, some of the possibilities we threw around—big houses, dream jobs—are beginning to seem like they may become artifacts of the past as well.

Where will you live?

In 1981, the average age of an American home buyer was 36 years old. Four decades later, they’re 56—it’s no surprise our American Opportunity survey shows that only 41 percent of Gen Z expect to own a home one day.

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In the US, Gen Z dollars have 86 percent less purchasing power than baby boomers’ did at the same age.

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In the UK, Gen Z will face the biggest average home-price-to-income ratio in more than 70 years—higher than the British housing shortage crisis post-WWII.

However, our research also shows that young people might not have real estate on the brain yet, or might prefer to own something else—a van, a camper, or a suitcase—to travel rather than put down roots.

What job will you work?

Well, that question today might work better as “what jobs will you work?” A quarter of employed Gen Zers work multiple jobs (compared with 16 percent of all workers), or hold a full-time job but run side hustles.

Many feel that the pay they currently receive isn’t enough for a good quality of life, or they fear for their employment, so they’re on the hunt—77 percent confessed to looking for a better job, and we’ve found Gen Z are most attracted by flexibility, a good work environment, and a sense of purpose.

Will you marry?

Marriage, home buying, and retirement are all milestones that Gen Z has reported worrying they won’t reach despite feeling strong pressure to do so. Many fear they won’t be able to afford these landmark events; they also report feeling anxiety about failing.

That said, many young people still want to marry—just not yet. Gen Zers are a highly career-focused cohort, with plans to lock in financial success early; in this year’s Women in the Workplace report, two-thirds of young women under 30 had sights set on the C-suite.

Will you have kids?

Family planning is a big choice at any age. While Gen Z is still young, the AP reports that many members of this generation are already opting out of parenthood, citing fears of climate change, debt, and worries about their ability to support themselves. As the workplace evolves, employers are needing to show up with better benefits—like strong paid paternity leave, which can be a game changer—to attract workers. These advancements, plus growing flexibility, will benefit Gen Zers when and if they do choose to have kids.

For many, becoming an adult can feel like playing M.A.S.H., but in real life. You may make some choices that enable some future scenarios but limit or foreclose others. That’s not bad; life is a series of choices, and there are always more you can make. The studies cited above also show that young women are more ambitious than ever, that Gen Z is more comfortable talking about mental health, and that job flexibility with no mortgage to pay may allow young people to chase travel dreams more than ever before.

But no matter what, the ways young people conceptualize their futures today are very different from how their counterparts did a few decades ago—and that means advancement opportunities and needed benefits will be all the more important.

Explore more:

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Women in the Workplace 2022, a report from McKinsey in partnership with LeanIn.Org, is the largest study of women in corporate America, condensing the experiences of 40,000 employees.

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Data from our American Opportunity Survey, led by senior partners André Dua, Kweilin Ellingrud, and coauthors, show that Gen Zers view their place in the working world with trepidation.

VISUALIZE IT

Remote work is favored by young people, but it’s not an option available to everyone—in the US, young people, more highly educated people, and higher earners have a better chance of remote-work choices.