It doesn’t take an economics degree to understand that global markets are roiling. “Volatility,” “uncertainty,” and “tariffs” have become common buzzwords around the world.
For Gen Zers, the current economic environment may be understandably confusing. What are tariffs? What is happening with inflation? And how will these forces affect my job prospects?
While Zoomers came of age during the COVID-19-era downturn, many were not yet part of the labor force. Now that more Gen Zers are employed (or trying to get hired), they probably have questions about what all these fast-flying, whiplash-inducing headlines about the global economy mean for them.
Today’s economic signals are mixed, and uncertainty remains high, especially with respect to tariffs and trade. According to a McKinsey Global Survey fielded in March, global executives perceive trade policy changes and geopolitical instability as the most disruptive forces in the global economy. In fact, the share of respondents citing trade-related changes as a risk to the global economy has more than doubled over the past six months and is now equal to the share pointing to geopolitical instability. McKinsey Senior Partner Sven Smit and coauthors also find that since the previous quarter’s survey, increased economic volatility and inflation—or the broad rise in prices of goods and services—have become more acute concerns among executives.
Amid all this uncertainty, there are a few things companies can do to help Gen Zers. Organizations have to mind their bottom line, of course. But they also need to foster an environment that supports employees’ well-being. Fortunately, they don’t need to make big investments in employee health to have a meaningful impact. Businesses that take measures to improve employee health stand to perform better than others, a finding that is especially relevant for Gen Z employees. Compared with older workers, Zoomers report being less healthy across all aspects of health, including physical and mental well-being. Improving employee health means reducing presenteeism, which is when people are at work but not performing at their full potential. Doing so can increase productivity, which in turn can lead to greater economic output.
Gen Zers can help themselves by practicing resilience, which is especially important for a group whose career paths are already littered with potholes. One way is to assess one’s own skills, as tech skills and soft skills (which include self-awareness, entrepreneurship, and fostering teamwork effectiveness) are both crucial for climbing the career ladder, according to McKinsey research.
It also pays to be strategic. Pursuing a career in fields where there is a shortage of skilled workers—such as manufacturing, which Zoomers say they are open to—could help improve the odds of finding a job. In the United States, the healthcare, science, technology, and engineering sectors represent growth areas (nurses and home healthcare aides are two of the fastest-growing occupations, for example).
A lack of predictability can be destabilizing, which can lead many people to resist change. This is what Jacqueline Brassey, director of research science at the McKinsey Health Institute, and Senior Partner Aaron De Smet—both coauthors of the book Deliberate Calm: How to Learn and Lead in a Volatile World—identify as the “adaptability paradox.” When people most need to learn and change, they stick to what they know, in ways that can stifle learning and innovation. The authors also note that adaptability is the critical success factor during periods of transformation and systemic change.
When it comes to economic volatility, Gen Zers may not be able to control the wind, but they can adjust their sails. |
