The JUST Report: Will Gen Z Become The Engine of a Just Economy?
Recent research from Sift, the AI-based fraud prevention platform, has revealed what it calls a “surprising generational divide”. It seems that Gen Zers – those born between 1997 and 2012 – express a significantly higher willingness to engage in online payment fraud compared to other generations. What’s more, some 33% of Gen Z respondents – much higher than other age groups – “either know someone who has participated in payment fraud or have done so themselves”.
As a father of four Gen Zers, I naturally found this to be somewhat unsettling. However, far more important is the analysis of why exactly this might be happening. First, it’s clear Gen Z is experiencing extremely high levels of economic distress and anxiety relative to other generations, brought about by student debt, exorbitant prices for houses, rental property and health insurance, a tough job market, and a general inability to afford even day-to-day necessities. What’s more, the research found that they feel much lower levels of corporate and brand loyalty. Indeed, Gen Z sees large corporations more as a cause of their broader economic problems than a pathway out of them.
Sift recommends companies build trust with Gen Z by “emphasizing their social responsibility”, helping them with payment management and flexibility, and prioritizing responsive customer service. These are all things we have heard in JUST Capital polling over the years in relation to just company behavior towards customers. According to our own surveys, Gen Zers also want to see CEOs advance climate solutions (70% vs 66% general population); uphold women’s reproductive rights (64% vs 57%); and protect LGBTQ rights (58% vs 51%). They are also more likely to say they would accept moderately less pay in order to work at a just company (23% vs 18%).
Gen Z makes up 20% of consumers in the U.S. and, in 2021, reportedly had a combined buying power of $360 billion. Undoubtedly it has grown since then as more of Gen Z join the workforce. They are the workers, the shareholders, the community leaders of tomorrow. Being just seems to be critical to winning their hearts and their support.
Be well,
Martin
JUST Events
August 6th 2024: Investing in Care: Proving the Payoff of Caregiving Benefits
Join us for a candid discussion about the challenges and opportunities of investing in caregiving benefits and potential positive outcomes for doing so. How are companies currently leading on caregiving benefits? What do you need to know about your workforce to create quality offerings? Learn first-hand from a company’s journey to significantly expanding their caregiving benefits.
Speakers:
Donnebra McClendon, Global Head of Culture and Inclusion, Dayforce
Joseph Fuller, Professor of Management Practice, Harvard Business School
Nicole De Santis, Partner, BCG
Ashley Marchand Orme, Director of Equity & Stakeholder Leadership, JUST Capital
JUST AI
Our friends over at The Conference Board are hosting a panel of expert economists on August 21 to discuss AI’s impact in the labor market, how it can cause or solve labor shortages, and more. Sign up here.
Must Reads
The Wall Street Journal reveals that many recent college graduates are heading to cities in the South due to better hiring prospects and lower cost of living, a job migration that hasn’t happened in several decades.
Are your company’s DEI efforts at a standstill? Fast Company speaks to twelve experts on why corporations need to move forward with their plans regardless of the political climate.
A Bloomberg opinion piece argues that the supposed gulf between rising productivity and flat wages is a “bi-partisan delusion”.
Following up on last week’s story, The Hollywood Reporter reveals that Disneyland workers have ratified their contracts with higher wages and sick leave.
Mashable reports that video game voice actors are following in the footsteps of the film industry, and are going on strike for protections against AI.
Bloomberg reveals that women now actually make up the majority of low-paid workers. Explore the implications here.
Chart of the Week
This chart comes courtesy of Axios, which shows that despite a blip in Q1, inflationary pressure is on the way down, with experts suspecting a rate cut may be coming in Q4. Explore the data.
