Generation Y - Economy

Economy

Economic prospects for the Millennials have worsened due to the Late-2000s recession. Several governments have instituted major youth employment schemes out of fear of social unrest due to the dramatically increased rates of youth unemployment. In Europe, youth unemployment levels are very high (40% in Spain, 35% in the Baltic states, 19.1% in Britain and more than 20% in many more). In 2009 leading commentators began to worry about the long term social and economic effects of the unemployment. Unemployment levels in other areas of the world are also high, with the youth unemployment rate in the U.S. reaching a record level (19.1%, July 2010) since the statistic started being gathered in 1948.

In the U.S. the economic difficulties have led to dramatic increases in youth poverty, unemployment, and the numbers of young people living with their parents. In April 2012 it was reported that 1 in 2 new college graduates in the US were still either unemployed or underemployed. It has been argued that this unemployment rate and poor economic situation has given Generation Y a rallying call with the 2011 Occupy Wall Street movement. In Canada, unemployment amongst youths aged 15 to 24 years of age in July 2009 was 15.9%, the highest it had been in 11 years. However, according to Christine Kelly, Occupy is not a youth movement and has participants that vary from the very young to very old.

Generation Y who grew up in Asian countries show different preferences and expectations of work to those who grew up in the US or Europe. This is usually attributed to the differing cultural and economic conditions experienced while growing up. They spend over $170 billion a year

To address these new challenges, many large firms are currently studying the social and behaviorial patterns of Millennials and are trying to devise programs that decrease intergenerational estrangement, and increase relationships of reciprocal understanding between older employees and Millennials, while at the same time making Millennials more comfortable. The UK's Institute of Leadership & Management researched the gap in understanding between Generation Y recruits and their managers in collaboration with Ashridge Business School. The findings included high expectations for advancement, salary and for a coaching relationship with their manager, and suggested that organisations will need to adapt to accommodate and make the best use of Generation Y. In an example of a company trying to do just this, Goldman Sachs conducts training programs that use actors to portray Millennials who assertively seek more feedback, responsibility, and involvement in decision making. After the performance, employees discuss and debate the generational differences they saw played out.