Nearly half of Americans are contemplating a job change within the next year, with Generation Z at the forefront of this potential wave of resignations, according to a recent report from Bankrate.
Released on Monday, the report reveals that 48% of Americans are likely to search for a new job in the next 12 months. Generation Z, those born between the mid-1990s and early 2010s, is particularly inclined to quit, with 39% planning to resign within the year, compared to just 25% of all workers.
In contrast, only 29% of millennials, 19% of Generation X, and 11% of baby boomers share the same intention.
Bankrate’s survey, conducted by YouGov, included 2,326 U.S. adults, with 1,124 working full-time or actively seeking full-time employment. The survey took place between July 23 and 25, 2024.
Mark Hamrick, Bankrate’s senior economic analyst, noted that it’s uncertain whether the current job market will meet the demands of those seeking higher pay or more flexible work conditions.
“The job market today is not as hot as it was when the economy first reopened a couple of years ago,” Hamrick said. “It’s more reminiscent of pre-pandemic conditions.”
The cooling of the job market, particularly in sectors tied to the housing market, is largely attributed to the Federal Reserve’s interest rate hikes, according to Hamrick.
He added, “If we observe a pattern of the Fed easing rates in the future, and a recession is avoided, these sectors could see renewed opportunities.”
Around 43% of those surveyed by Bankrate also intend to ask for a raise in the next year. This is more common among younger generations, despite growing concerns about job security since the interest rate hikes began in March 2022.
Approximately 30% of workers reported feeling more anxious about job security, while 16% felt less worried. Overall, 70% expressed some level of concern.
In the latest jobs report from July, the unemployment rate rose to 4.3%, with employers adding just 114,000 jobs.
Given the current economic outlook, Bankrate’s report may signal a desire among Gen Z and other workers to leave their jobs, but few may follow through, according to Alex Beene, a financial literacy instructor at the University of Tennessee at Martin.
“Talking about leaving your job is much easier than actually doing it,” Beene told Newsweek. “It’s understandable why many in Gen Z, and other generations, are considering a change—feeling overworked, underpaid amid rising costs, and missing the benefits like remote work and time off that were common during the pandemic but are now fading.”
While the job market was favorable during the 2022 “Great Resignation,” Beene suggests that the situation is shifting, and employees may face fewer options.
“That doesn’t mean people should stay in jobs they dislike,” Beene added. “However, it’s crucial to have a plan before making a move, as the era of easy job-hopping may be winding down.”
Resource: America Could See Exodus of Gen Z Quitting Their Jobs (msn.com)