Generation Z, the demographic cohort born between the mid-to-late 1990s and early 2010s, is shaping up to be wealthier than their Millennial and Generation X predecessors, and they are doing so with a unique blend of skills and values. In 2022, Gen Z was just shy of 70 million people in America, roughly 21% of the U.S. population. This population subset is increasingly becoming a driving force in business and politics. Across the developed world, Gen Z boasts a population of over 250 million people. Nearly half of them are already in the workforce, and a significant portion are pursuing degrees in fields with high market demand, such as science, engineering, and medicine. Unlike previous generations that often focused on humanities, Gen Z’s inclination towards these lucrative fields is driving higher wages and job stability. Degrees in STEM fields have a starting salary about 31% higher than humanities. This focus on marketable skills not only supports better career prospects but also positions them for financial success, further distinguishing them from the financial struggles often faced by Millennials and Gen X.
One of the defining characteristics of Generation Z is they exceed technological savviness and are instead technology-native. Born into a world dominated by essential technological inventions like Wi-Fi, smartphones, and social media, they have an innate ability to navigate and leverage technology for personal and professional growth. This digital fluency extends across both developed and developing nations, creating a generation that is more connected and informed than ever before. The ability to effortlessly access and utilize technology enhances their productivity and provides them with a competitive edge in the job market.
Nearly four-fifths of Gen Z are in developing countries and are experiencing rapid technological advancements that have significantly improved their quality of life compared to their parents and grandparents. These advancements have provided them with better educational resources, enhanced career opportunities, and access to a global network of information and connectivity, all contributing to their growing wealth. In developing countries, Gen Z is earning more earlier in life and contributing a larger share to multi-generational household income than previous generations as a similar
In America and the West, Gen Z is known for their boldness and willingness to advocate for themselves in the workplace. They are unafraid to ask for raises and prioritize their values, influencing societal changes as they enter the voting age. This confidence and assertiveness transform traditional work cultures and promote a more dynamic, values-driven professional environment.
In conclusion, Generation Z is a generation poised for prosperity. Their upbringing in technologically advanced environments focus on high-demand educational fields, and assertive approach to career and social issues have set them up for financial success. Gen Z has experienced the largest wage growth premium over the older working age cohort in the history of the data published by the St. Louis Federal Reserve’s FRED economic data, posting 13% year-over-year wage growth for the 16-24-year-old population in 2022 versus a 6.3% year-over-year gain for the 25–54-year-old working age group over the same period. As they continue to shape the workforce and society, their unique blend of skills and values ensures that they will not only be wealthier but also influential in driving future advancements and societal progress.
Written by: Matthew Goldman
