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Young people’s changing work interests are reshaping traditional jobs. “Generations are born from change,” adds Marcie Merriman, Culture Insights & Customer Strategy Leader at EY Americas, as she reflects on generational priority changes.
Such employment trends were previously a temporary response to social stresses but now represent deeper shifts in values, aspirations, and prospects. As Deloitte found in 2019, nearly four out of five Millennials would quit their existing jobs to pursue opportunities more suited to their values and life visions. Read on for 20 reasons why many young people are opting out of conventional career paths.
Flexibility Matters
The appeal of remote working has increased to new heights, as flexibility is important for many young professionals. According to a report from Global Workplace Analytics, as of the end of 2023, 25-30% of the workforce will work from home more than one day per week.
A 2023 report by Buffer states that work-from-home flexibility and freedom to plan daily schedules are the best selling points among younger workers. Remote working brings the flexibility that is so missing from traditional office jobs.
Pursuing Passions
Gig economies offer attractive alternatives to workday life, particularly for youth and startups. According to the U.S. Bureau of Labor Statistics, the number of self-employed Americans is expected to rise by 8% by 2026.
Young people are taking what they like and monetizing it. “Many young entrepreneurs today are leveraging digital platforms to reach global audiences. With lower barriers to entry, the internet allows them to experiment, pivot quickly, and build scalable ventures in fields they are truly passionate about,” says Henry Lopez, a business coach and entrepreneur.
Educational Debt
Student loan debt has a profound impact on careers in the U.S. The Federal Reserve estimates that Student loans in the U.S. now exceed $1.7 trillion.
All this cost has resulted in a growing number of young adults looking for another path of employment, which can be cash-strapped or entrepreneurial. Analysts such as Emmanuel Saez at Berkeley and Daron Acemoglu at MIT think student debt is an enormous burden for low- and middle-income students, and solutions such as targeted debt forgiveness can reduce that burden.
Technology and Automation
Technology and automation are reshaping the workforce and career opportunities. Automation will also take 85 million jobs out of the world’s labor market by 2025 (according to the World Economic Forum) and create 97 million new jobs.
These young professionals are responding by preparing for jobs that match the technology. As Jonathan Grudin of Microsoft explains: “Workers will build the future, not just prepare for it, and technology is already at the core. In fact, it will likely have a greater impact over the coming years.”
Delayed Career Start
Several factors contribute to young adults’ later entry into the workforce. Older workers delaying retirement limits opportunities for upward mobility for younger employees. Career specialist Jasmine Escalera noted, “If you’re not moving up the corporate ladder because there’s no room for advancement, your earning potential can stagnate, which may also impact your ability to retire at a certain age.”
Senior workers who work longer after retirement age disrupt young professionals’ progress. The longer young people stay put, the more they change their minds about a career option. The National Center for Education Statistics reports that more individuals are also pursuing advanced degrees, leading to delayed full-time employment.
Family and Caregiving
Young people are also choosing to reduce work hours, adopt flexible work patterns, or retire entirely to care for children, older parents, or other family members. Caregiving often requires sacrifices in work hours and income.
According to a study by the Rosalynn Carter Institute, 57% of family caregivers report adverse workplace outcomes (such as reduced hours or lost pay). As the economist Nancy Folbre, who specializes in care work, says about how family care and career paths overlap: ‘Deficits of supporting caregivers have the disadvantage of burdening women and younger workers with a trade-off between work and family life.
Desire for Purpose
Young people are increasingly seeking meaningful work and corporate social responsibility. According to a McKinsey report, Generation Z cares more about purpose than pay, and young adults tend to pursue careers that suit their values, like working for the environment or in social justice.
Emotional intelligence specialist Daniel Goleman said, “63% of millennials think that businesses should be better for society than making money.” The emphasis on impact-based work is the latest indication that businesses that can’t deliver purpose will fail to draw and retain young talent.
Global Events and Shifting Values
Pandemics and social movements have impacted young people’s career choices. The COVID-19 pandemic, for example, has driven the pace of digital transformation and telework, McKinsey suggests, and it has caused people to revisit personal and professional priorities.
‘Young people are worried more about the state of the planet and inequality today than they have in the past,’ says Professor Carmen Leccardi, a sociologist specializing in young trends. These values drive their career choice, and they choose jobs that offer ‘not only financial security but also personal and moral satisfaction.’
The Cost of Living
Economic pressures and the need for financial stability influence career decisions. According to the National Low Income Housing Coalition, the typical minimum wage worker in any U.S. state can’t afford to rent a two-bedroom unit, so many young adults have looked for another source of income.
A Prospects at Jisc survey shows that money worries now surpass mental health as the top concern for undergraduates and recent graduates. A whopping 50 percent of participants changed their career plans due to financial difficulties, and a high percentage pursued more profitable jobs than passion-based ones.
Desire for Travel
Youth also display a strong desire to see the world before setting out on a career. In a research study by Student Universe, a group of 18 to 25-year-olds revealed a love for travel that’s tremendously beneficial because of its educational and career impact.
Travel blogger Julie Beck noted, “Travel can alter both education and career paths. A passion for travel encourages people to teach abroad, become au pairs, or pursue freelance careers that align with their desire to explore the world.”
Housing Market Challenges
The current housing market challenges, including skyrocketing home prices and limited housing supply, significantly impact career choices. According to Freddie Mac, the U.S. faces a housing shortage of 3.8 million units, so young professionals might want to work from home or create their own businesses to ease the shortage.
Urban Institute research analyst Katie Visalli commented on the broader issue: “The housing supply shortage has left young adults disillusioned.” Visalli’s insights underscore how housing challenges push young professionals toward more precarious job choices.
Changing Career Expectations
Young professionals are redefining success and fulfillment. According to Prudential, 27% of people change careers seeking a better work-life balance.
Mauro Guillén of Wharton Business School emphasizes the importance of moving beyond generational stereotypes, suggesting that younger workers’ evolving career expectations are driven more by age and life stage than arbitrary generational traits. He argues that the modern economy requires frequent learning and career changes, reshaping the traditional view of lifelong careers.
The Role of Social Media
Social media has pushed the rise of content creators and influencers as legitimate career paths. A 2018 study showed that becoming a social media star was Gen Z’s fourth most popular career aspiration, ranking even higher than becoming an actor or pop star.
Young people check out potential employers on social media, showcasing the impact of online presence on career decisions.
Corporate Culture and Values
Workplace culture and diversity are important concerns for young professionals. Glassdoor found that 76 percent of employees consider diversity important when evaluating job opportunities, which highlights the importance of inclusive and supportive work environments.
As Michele Parmelee at Deloitte points out, young people are value-oriented. They want a job that empowers them to make an impact on the social and environmental world.
Skill Development and Training
Continuous learning and upskilling are essential for young professionals. The World Economic Forum forecasts that by 2025, half of all employees will require retraining due to technological changes, increasing the need for educational programs to adapt to new industries.
According to Baratunde Thurston, director’s fellow at MIT Media Lab, “online training and certification will rise rapidly in part due to the high cost of formal higher education and its low payoff for some professions.” Young people increasingly prefer targeted training to traditional degree paths, especially given the cost and poor return on traditional degrees.
Entrepreneurship
The allure of starting one’s own business is potent. A survey conducted by Junior Achievement USA found that around 64% of young people aspire to be their own boss, given the independence and the potential for financial success.
Naomi, a youth ambassador for the Youth Futures Foundation, talked about the inspiring drivers of young entrepreneurs, saying, “I found it inspirational that they balanced this alongside personal, educational, and other commitments. It shows that young people are determined to shape their own future and are empowered to find solutions themselves.”
Mental Health and Burnout
A supportive work environment is necessary for mental health and preventing burnout. A joint study by Mind Share Partners, SAP, and Qualtrics revealed that 50% of Millennials and 75% of Gen Zers have left roles for mental health reasons.
This underscores the importance of prioritizing mental well-being in the workplace. Dr. Sian Leah Beilock, a cognitive scientist and president of Barnard College, emphasizes the changing priorities of younger generations: “Today’s workers are redefining the workplace in ways that prioritize mental health and well-being over traditional metrics of success, which is reshaping how organizations approach employee satisfaction.”
Work-Life Balance
The pursuit of work-life balance is a priority for many professionals. A study by Glassdoor found that 65% of Millennials value work-life balance over salary when considering job opportunities, emphasizing the importance of personal time over rigid work hours.
As sociologist Dr. Tracy Brower points out, this shift is driven by the desire for a more integrated lifestyle where work and personal life can coexist harmoniously. These demands highlight the younger workforce’s rejection of the burnout culture observed in previous generations.
Environmental Concerns
According to a Pew Research Center survey, 64% of Americans, particularly younger generations, believe that efforts to combat climate change should be a priority today to secure a sustainable planet for future generations. A growing interest in eco-conscious careers and organizations aligns with young people’s values.
According to a survey by Nielsen, 75% of Millennials are willing to pay more for sustainable products. This shift is driving the demand for jobs in industries that prioritize environmental sustainability.
