GenZ, the New Greatest Generation

Parallels exist between the youngest generation of adults and the oldest

This original image was created with the assistance of DALL-E.

Despite what we’ve been led to believe, generations are more alike than most think, especially in the workforce—research shows this time and time again. However, as socio-economic and technological realities change over time, so do the norms. These new norms eventually alter a generation’s behaviors and, eventually, society and the economy.

GenZ (1997-2012) is no different.

In the past few years, my work has taken me down a rabbit hole of research to uncover the secret of what makes GenZ tick, in large part due to client demand. Each time a new generation matures into adulthood, the business world clamors to uncover the secret to understanding them, so they can engage them as workers and consumers—this is nothing new. However, the secret is there is no secret.

Time and again, so-called generational experts feed corporate leaders and media outlets with overly generalized and stereotypical tropes. Many have attempted to draw parallels or stark differences between GenZ and Millennials (1981-1996) or even GenX (1965-1980). However, they often miss the foundational realities facing GenZ, which are more akin to those of the Greatest Generation (1901-1927)—their great-grandparents—than any other generation living today.

GenZ is a resilient generation and the byproduct of their times. According to Professor Scott Galloway, author of The Algebra of Wealth, “The social compact is breaking down.” GenZ is challenging the status quo because it is not working for them.

Economic Hardship, New Labor Realities

Both the Greatest Generation and GenZ grew up in fairly dark economic times punctuated by gross economic inequality and instability.

For the Greatest Generation, these events included the high-flying 1920s and the Great Depression. According to the University of New Hampshire, “Between 1919 and 1929, the share of income received by the wealthiest one percent of Americans rose from 12% to 19%, while the share received by the richest five percent jumped from 24% to 34%.”

For GenZ, their early years were punctuated by the Great Recession and the economic instability of the pandemic years. They also witnessed greater economic inequality than the previous three generations. According to the U.S. Census, the share of income going to the top 5% grew from 2019 through 2022—to 23.5% from 23% —while the share for lower income groups decreased.

Following both dark economic periods came incredible economic growth. Labor markets for both generations improved substantially compared to the previous generation. Organized labor and collective bargaining normalized.

Living at Home

The Greatest Generation lived at home until they married or were able to reliably afford to live independently. GenZ is no different.

According to Bloomberg, as of September 2023, 45% of people between the ages of 18 and 29 in the U.S. lived with their families, the highest percentage since the 1940s and roughly at the same level.

According to Mark Zandi, chief economist at Moody's Analytics, young people may stay in their parents' homes longer due to the collapse in housing affordability. This allows them to save on rent, manage their expenses, and save for a down payment to purchase a home.

Pandemics

Both the Greatest Generation and GenZ lived through disruptive global pandemics, including the 1918-1920 pandemic, also known as the Spanish flu, and the COVID-19 pandemic, respectively.

Both pandemics struck at foundational periods for young people, affecting their health, educational paths, and economic opportunities. However, the societal response and public health capabilities during COVID-19 provided somewhat more robust support mechanisms, such as remote learning technologies and advanced medical interventions, which were absent in 1918. Nonetheless, the broader societal impacts, especially on mental health and economic stability, are deep concerns that echo the historical impacts of the 1918 pandemic.

According to Dr . Tuomo Kuosa, Content Director at Futures Platform, “Especially for those members of Gen Z who are now in their teens, an event like this at such a sensitive age will shape their identity and worldview for the rest of their lives.”

Rising Authoritarianism and Threats to Democracy

Both the Greatest Generation and GenZ lived through rising authoritarianism and threats to democracy at home and abroad. Both generations also lived through or in the aftermath of attacks on the U.S., including Pearl Harbor and 9/11, respectively. These events shaped their worldview as a result.

In the 1930s and today, economic crises and inequality fueled dissatisfaction with the existing political systems. In both eras, populist leaders who appealed to national pride rose, often combining their rhetoric with xenophobia and anti-immigrant sentiment. Both periods witnessed challenges to democratic norms, including attacks on the independence of the judiciary, the press, and other institutions that act as checks and balances in a democratic system.

For the Greatest Generation, it was the rise of Nazism and fascism across Europe that led to the Second World War, history’s deadliest conflict, which led to the deaths of 420,000 Americans and around 60 million people worldwide.

For GenZ, it was the rise of Trumpism and nationalism across the globe. This includes the reversal of women’s and LGBTQ+ rights, as well as book bans across the United States.

New Media

Like their 1930s counterparts, modern authoritarian leaders use media and technology to spread their message, discredit opposition, and manipulate public opinion remarkably well. While the 1930s saw the rise of new mediums, such as radio and film, as propaganda tools, today's authoritarians use the internet, social media and other digital platforms to influence and control information.

What’s different is that today’s new media landscape is largely democratized thanks to social media platforms. Regardless, both generations had more access to information than any generation before them. Both generations had to confront misinformation and, to varying degrees, propaganda.

GenZ’s New Rules

McKinsey noted that Gen Z "is generally more pragmatic, with both complicated idealism and worries for the future.” In essence, they are realistic, which translates into a number of new norms for this generation that are shaping society and the economy. Regardless, they are pushing back on the status quo.

• GenZ sees a job less as a privilege and more as a right. They believe more in collective bargaining, and unions are growing in size and influence like in the post-war period. According to a March 2024 SEIU1021 report, 73% of Gen Z workers believe unions are essential for improving working conditions and protecting workers' rights. The Center for American Progress also notes that Gen Z is the most pro-union generation alive today. Labor realities and GenZ attitudes towards work translate into higher pay, much like they did for the Greatest Generation. According to The Economist, “In America hourly pay growth among 16- to 24-year-olds recently hit 13% year on year, compared with 6% for workers aged 25 to 54.” GenZ is also the first generation to take an about-face on formal education—a good number are turning away from college and going into the trades. A 2023 survey commissioned by Jobber found that high-school-age and college-age respondents said they thought blue-collar jobs offered better job security than white-collar ones, given the growth of artificial intelligence. 

• GenZ is the constrained resource generation. According to the Pew Research Center, GenZ is richer than just a few years ago—and much richer than their parents at the same age—but everything costs more, and they have more debt. This means GenZ is living with the reality of constrained resources, meaning they do not have access to affordable education, health care, or housing. This reality has pushed them into pragmatic living, meaning they are saving more than the previous three generations. According to the Investment Company Institute, the share of GenZ with retirement accounts is three times that of GenX at the same age. They are staying at home with their parents longer to achieve their financial goals.

• GenZ believes in the role of the state and institutions. GenZ supports things like universal education and health care, in large part because they’ve seen the effects of high costs on their families. According to a Business Insider survey, GenZ is dissatisfied with the current economic system, including healthcare, and has expressed that it isn't fully sold on capitalism. It wants to improve these systems. Further, according to a 2023 AAMC Center for Health Justice poll, a whopping 87% of GenZ agree that access to healthcare is a basic human right. 

• GenZ is activist and politically engaged. The Sandy Hook and Marjorie Stoneman Douglas massacres put gun violence front and center for this generation. They’re also the first generation to see their rights reversed. These headwinds have spurred them into online and in-person activism. And it's not just limited to anti-gun or pro-rights activism. GenZ will fight for the underdog, even if the underdog's values don't necessarily align with theirs. According to Tuft’s Center for Information and Research on Civic Learning and Engagement analysis, Census data shows that youth voted at a higher rate in that election than Millennials, GenX, and Boomers did in their generations’ first midterm election—highlighting the trend of historic political engagement by today’s youth. 

• GenZ is the first "social" generation. Gen Z is the first generation to have 24/7 access to the internet, connected devices, and social media since birth. Younger people, especially those who are content creators, have a voice. Social media has influenced how GenZ connects with the world. They may have lost some of the in-person skills that older generations have, but they are able to leverage technologies in ways that older generations have not. They are connected to the world and diverging worldviews.

The Greatest Generation remade America and the world, setting the stage for a period of unprecedented growth and shared economic prosperity, including shrinking income inequality that lasted for three decades. The big question is whether GenZ will follow in their footsteps and confront the challenges of the day Will they rally toward a unified cause like their great-grandparents?

Time will tell, but signs are starting to point to ‘yes.’