The Blubber

Generation Z is entering the workforce and, in a tradition reminiscent of what Millennials once dubbed "adulting," they're lamenting how much easier previous generations had it.

Before Baby Boomers and Generation Xers get too frustrated, it's worth noting that Gen Z—those born between the late 1990s and early 2010s—is transitioning into adulthood amid one of the strongest job markets in U.S. history. Compared to Millennials who entered the workforce during the Great Recession, Gen Z's experience is considerably more favorable.

"This is the best economy we've seen for younger workers that anybody can remember," says Brendan Duke, senior director for economic policy at the Center for American Progress. He notes that Gen Z's wages have outpaced inflation overall, growing more quickly than any other age group.

For example, last year's unemployment rate for 16-to-24-year-olds was 7.9%—the lowest since 1953, significantly better than the 18.4% rate in 2010 during the aftermath of the recession.

However, Gen Z faces its own challenges.

Like other generations (hello, elder Millennial here), they're grappling with rising inflation that has sharply increased prices over the past few years. Essential goods have become notably expensive, with food prices surging during the pandemic and remaining elevated even as supply chains recovered. Housing costs have also skyrocketed due to the Federal Reserve's interest rate hikes, leading many to hold onto homes they might have otherwise downsized. The housing market struggles to keep up with demand, creating a challenging situation.

A major difference today is that Gen Z has social media platforms where they can publicly share their financial struggles or envy peers with generational wealth.

Recently, a TikTok user's rant about the cost of living went viral, garnering 5 million views, along with tens of thousands of comments and shares.

"I make over three times the federal minimum wage and I cannot afford to live," he declares in the video. "It is embarrassing to come out and say that it is a struggle to survive right now but I know so many people are struggling."

He concludes, "The American Dream is dead."

While the video veers into hyperbole, it reflects a genuine and growing sense of disillusionment among younger generations.

Gen Z reports higher rates of anxiety, depression, and distress than any other age group, according to a 2022 McKinsey study. The same study found that Gen Z was the least likely to seek medical care for these conditions due to the high cost of behavioral health care. "Many Gen Zers also indicated their first step in managing behavioral-health challenges was going to TikTok or Reddit for advice," the report noted.