Gen-Z have complex feelings about the future.
The Edelman Trust Barometer Special Report: Trust at Work data shows that the youngest Gen-Z are incredibly pessimistic in their outlook, while the oldest Gen-Z are incredibly optimistic. This intra-generational optimism gap is far greater than that between employees of different income levels, sexes, and political leanings, highlighting a fascinating data-driven contrast to the stereotype of Gen-Z as a doom-and-gloom generation.
While Gen-Z are in fact more optimistic than other age groups – 67% agree that they and their family will be better off in five years – only 39% of corporate associates (entry-level employees and experienced non-managers, many of whom are Gen-Z) are as optimistic. This demonstrates a key finding:
The most misunderstood optimism gap is within Gen-Z itself.
On the one hand, this does not come as much of surprise considering the factors. Many younger Gen-Zers are university students and recent graduates whose studies were reshaped by the challenges brought out by COVID-19. Many are experiencing their first “normal” work environment at a time when employees of all generations are withdrawing from the in-person work cultures that may have traditionally generated that optimism.
On the other hand, pessimism is not inherent to Gen-Z, and it would be both unfair and inaccurate to ascribe pessimism to the whole generation. The oldest members of Gen-Z are better equipped to navigate the evolving hybrid workplace and have become more optimistic as they grow into mid-level manager roles in their mid-to-late-twenties. Over time, it could be fair to expect that all Gen-Z can become similarly likely to trust their employer and take on additional work – the youngest members of Gen-Z just need time.
At the heart of Gen-Z’s intra-generational optimism gap is the employer-employee relationship.
The Edelman Trust Barometer Special Report: Trust at Work shows that amidst a lack of trust in public institutions, employers have filled the void, becoming not only the most trusted institution of all, but also the most reliable indicator of economic optimism generally. It follows that employers owe these youngest Gen-Z employees the benefit of the doubt. Employers must aim to better understand the nuances of this generation, harness the potential of all Gen-Z employees, and invest in Gen-Z’s skill development, empowering them to take ownership of their roles and engage more deeply with their work.
Addressing the optimism gap among the youngest Gen-Z employees will not be easy, nor will it happen overnight. But it could create a ripple effect across the labour force and broader society. As highlighted by the Trust Barometer, economic optimism correlates strongly with trust in institutions, motivation, and employee engagement, which collectively improves society’s overall outlook.
Gen-Z are the young professionals of today and the leaders of tomorrow.
Gen-Z's level of economic optimism provides a valuable indicator of the health of our workforce and society. While the economic pessimism often associated with Gen-Z is not unfounded, neither is it pervasive at both ends of the age spectrum.
With time and proper investment, many members of this complex generation could develop the respect, patience, and agency they are encouraged to cultivate.
About Gen Z Lab
Gen Z Lab is Edelman's global offering comprising Gen Z employees, a roster of internal and external on-call advisors, and data hub dedicated to generational insights.
To learn more about the Gen Z Lab, please reach out to Catherine Santos.
