What Generation Z expects from the job market

Generation Z, born between 1995 and 2010, is gradually entering the world of work. It is the first generation to have grown up with digital technologies from an early age and, as digital natives, takes them for granted.

The coronavirus pandemic has had a significant impact on Generation Z’s final years at school and their first years of vocational training and university: lockdowns, remote learning, school closures, online university, etc. meant, on the one hand, strict restrictions on social contact, whilst, on the other hand, young pupils and students remained digitally connected to the whole world.

Policy supports Generation Z

Those who had already entered the labour market in 2020 were often the first to lose their jobs as a result of the economic crisis. The number of apprenticeship places on offer has also fallen across Germany over the past two years. This is a trend that can be observed worldwide: young people are unemployed more frequently and for longer periods than before the COVID-19 pandemic. At the end of 2021, the rate in Germany stood at 6.4 per cent, whilst across Europe it was 14.0 per cent. To prevent this trend from becoming entrenched, the EU increased the budget for the „Youth Employment Initiative“ (YEI) to 145 million euros as early as the end of 2020.

It remains to be seen over the next few years just how effective the current measures will be. However, a look at the US gives cause for optimism. There, youth unemployment fell rapidly last year and currently stands at under 10 per cent – a figure that forecasts suggest will be sustained in the longer term. US economists and psychologists attribute this to the fact that young people of Generation Z now want to take the initiative again after years of the Covid-19 standstill.

Generation Z wants variety in their careers

Generation Z is, in any case, more relaxed about their professional future than any previous generation. They are aware that digitalisation will change their working lives and everyday routines in the future, and they view this with a relaxed and positive outlook. Work-life balance hardly plays a role. Instead, they seek motivation and a sense of purpose in shaping their own professional and personal lives. This means clear structures and fixed working hours with sufficient freedom to pursue personal interests. As a result, it is generally out of the question for these young people to reply to emails or make business calls after work.

Generation Z is looking for interesting and varied work that presents ever-changing challenges. Only 38 per cent can envisage having a job for life. By contrast, frequent job changes are not uncommon, and gig economy opportunities are often the preferred option.

What is the gig economy?

• The gig economy is a labour market for freelancers and people in part-time work who take on individual, short-term assignments. These jobs usually offer no social security cover and are without an employment contract.
• The types of work available to gig workers range from driving taxis and delivering food to providing customer service or performing as an artist. Thanks to the internet, gig workers can find work all over the world; this applies to freelance graphic designers as well as agencies.
• Labour market researchers expect gig work to account for a large proportion of the world of work in future.