- Americans are still leaving their jobs, with 4.4 million people quitting in April alone.
- Gen Zers benefited most from a great resignation, according to LinkedIn and Bank of America data.
- Bank of America data shows that they are also seeing higher wage increases than those who change older jobs.
General Zers wins the great resignation.
They’re the generation most likely to change jobs and get the biggest pay increases when they do, according to a report from the Bank of America Institute and data from LinkedIn provided to Insider.
And even more young professionals are considering handing over their resignation letters in the next two years, based on a global survey by Deloitte — although the percentage that said this fell from last year’s result, suggesting that major resignations may slow a bit after a year of Standard resignations.
But for now, Generation Z is taking advantage of the labor shortage and their flexible position in life to find the right job for the right money.
General Zers who change jobs get paid more
Recent data from LinkedIn, where Gen Z is defined as 20-24 years old, and shared with Insider, shows that Gen Z job transfers in April 2022 were 29.5% higher than the previous year. That’s about 20 percentage points higher than the 9.6% increase seen by millennials, according to LinkedIn data. Generation X job transfers were 8% higher in April 2022 than they were in April 2021.
Bank of America’s internal data shows a similar story, with nearly a quarter of Generation Z, aged 25, moving into jobs within the past six months, the highest among generations during this period.
“It’s normal for career buds to be in a beta phase where they’re still figuring out what they want out of the job, and not always ready and willing to compromise,” said Karen Kimbra, chief economist at LinkedIn, in a statement.
“It really is the perfect time for them to take the leap,” Gen Z researcher Jason Dorsey told Yahoo Finance. For example, he said, the generation “has the least responsibility in terms of family, child, houses, cars, etc.”
The Bank of America Institute report found that the “average wage rise associated with job transitions,” based on annual wage data from May 2021 to April 2022, is about 17.6%.
“In other words, perhaps not surprisingly, it has paid off for job transfer,” the report said.
For Gen Zers, that pay increase is 29.7%, the highest among generations, according to Bank of America data.
But it’s not just young workers who change jobs who see more money in their bank accounts. Internal data for annual wage growth from May 2021 to April 2022, in general, shows that General Zers is seeing an increase in wages compared to other generations.
David Tinsley, director of the Bank of America Institute, told Insider that General Zyers’ education level could be linked to higher wages.
“Some of the rise of Generation Z will simply reflect that people in this group are embarking on their professional journeys from education, which inevitably involve significant wage changes,” the Bank of America Institute report said.
Millennials are also seeing above-average wage growth of 9.2%. Tinsley said millennials may have in-demand skills that businesses need, and it could also be because of the “great rotation away from spending on goods to spending on services.” He said that service industries such as travel, leisure and entertainment tend to employ younger workers.
Young professionals think critically about whether the job fits what they really want
Regardless of changing jobs, Generation Z thinks about the jobs out there, the benefits they offer, and the duties involved.
“The notion that they are ‘reckless’ is just a mischaracterization – from what we hear from Gen Z members on LinkedIn, they carefully weigh the pros and cons of each opportunity and are willing to leave for a company that better aligns with their values and invests more in skills development and career growth.” “In the tight labor market we are in, bargaining power still tilts in favor of the worker, and Generation Z is well aware of that.”
According to a global survey from Deloitte Gen Z and Millennial Generation Survey, 37% of Generation Z and 36% of Millennials said they “reject a job and/or assignment based on their personal morals.” Nor will they continue if they have to return to their offices. A global survey by the ADP Research Institute found that Generation Z are more likely to consider a new job if their company requires them to return to the office full time.
“This group is definitely moving jobs at a higher rate than we might expect, and when we poll LinkedIn members, Gen Z stands out as the group most likely to walk away from the job if it doesn’t offer certain benefits like a flexible work policy.”
Deloitte and the Network of Women Executives noted in a recent report that employers will need a “different mindset” to hire and retain Gen Zers.
“Employers will need to understand the behaviors and inclinations of a generation that expects further customization in the way they want to treat their employer and are looking for more than filling cookie-cutter roles,” the authors wrote.
Regardless of age, the job market is hot for job seekers
Tinsley said that despite some signs of cooling, “the job market for most generations, particularly the younger age groups, has been very hot.”
Companies increase wages and offer other benefits to finding and retaining workers. According to a Bank of America Institute report, wage increases may not last, and these job changes may be “now peaking.”
Daniel Chow, chief economist at Glassdoor, previously told Insider that the job market situation appears to be “healthy” for people looking for jobs. But he cautioned that this is not always the case.
“This is still a labor-oriented labor market,” Zhao previously said. “There is no guarantee that it will last forever, but overall, what I am telling job seekers is that this is a good time to look for a new job and try to secure those gains while the job market is still going strong.”
Are you General Zir who has resigned or is considering leaving your job? Contact this reporter at [email protected].
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