Category: Millennials

What in the world have we done to our kids?

by HOMEiZ Blog Team Posted: 11/10/2016 Views: 992

Millennials are now the largest generation, and we must do more to ensure that they are not simply a lost generation. Approximately 25 million American adults are living with their parents. Millennials have been hit hardest by the recent pay squeeze, which began before the financial crash, but has been made worse by the economic downturn. Millennials will be the first generation to earn less than their parents over their lifetime. They leave college with an average $27,000 debt load and have a harder time finding jobs that pay well, while facing more expensive health care and housing costs. Millennials make about 20 percent less than the previous generation and will be less able to support themselves when unexpected emergencies arise or when they eventually retire.

Harder to afford a rental apartment today

We used to tell our kids, and ourselves, that if you go to college there will be a good job waiting for you. Now we have college graduates and even people with graduate degrees who cannot find the bottom rung of the career ladder. Even if you make a decent salary it’s so hard to afford a rental. Unfortunately, spending such a big chunk of your income on rent makes it difficult for many to save for a down payment to purchase a home. Plus, rents are rising faster than wages in many cities, which only compounds the problem. Not only do cost-burdened households defined as those that spend more than 30% of their monthly income on rent have trouble saving for a down payment, but they may end up cutting back on necessities like food and health care to afford a place to live. Sharp increases in rents along with stagnant incomes over the past five years have helped create a dire situation for many of the Millennials renters. The United States has grown much less affordable for Millennials renters and barring a major change, is likely to continue doing so.

Unpaid is the operative word

Even those who managed to find a job in their chosen profession during the economic downturn were paid a lower starting salary than their predecessors, and their wages have remained pretty much stagnant since that time. Many other millennials weren't fortunate enough to find a job in their chosen industry, despite their efforts. Data clearly shows that today’s young workers are basically screwed. Millennials are doing worse than the previous two generations did at their age, even though they’re more likely to have a completed postsecondary education program and are part of the most productive workforce in memory. The financial struggles of the millennial generation paint a grim picture. Throughout the United States, today’s millennials are paid less, have higher debt and lower savings, and face a job market that’s still recovering from the recession and seems increasingly hostile to folks trying to start their careers. The labor market has not fully recovered from the recession, leaving a large pool of unemployed workers who can replace current workers who ask for better wages or working conditions. Why would a company that’s trying to maximize profit pay higher wages than they should? Millennials are just willing to work for less when the job market is weak and jobs are very hard to be found. Crappy pay is better than none, right? It’s harder than ever to join or organize a union. Millennials’ union density is low, even though the benefits of union membership are significant. Without the worker power that comes from having a union, millennials are unable to negotiate for better pay and the kind of working conditions that make for a more productive and satisfying workplace.

Millennials are our only hope

Not surprisingly, millennials are skeptical about the American dream.
Millennials have been suffered the most by an economy that they had no part in destroying, and it’s given them a perspective their parents never had. The false promises that were made to them by their parents, it would be understandable for them to be angry or apathetic. Millennials are told that to get anywhere in life they need a degree, which today requires taking on massive debts. This means that at the very beginning of their lives they’re already saddled with a great financial burden. The opportunities that were available in the past simply aren’t there any longer. It’s much harder for someone to work their way up in a company without an education, and it’s also harder for people with an education to find an entry into their field. A growing number of millennials only have the option of going into service work, no matter their level of education, and those jobs command low wages, few benefits, little opportunity for advancement, and precarious schedules. Millennials can’t be blamed for ignoring mainstream politics when politicians couldn’t give a damn about their suffering and often make it worse. The system is not going to change unless people genuinely stop supporting it. Hoping for a political solution alone is not enough.

Millennials want to make the world a better place

Millennials love to act. They love donating portions of their profits or having some sort of dedication to social issues. In fewer than 10 years, Millennials will make up almost half the workforce, bringing with them their expectations of a more social and flexible business world. Millennials bring entrepreneurial spirit and drive is one of the greatest gifts millennials have given to the world. Many of the millennial entrepreneurs had to become one out of necessity and lack of job opportunities but it still takes tremendous courage and faith to start your own business. The future of work lies in empowering millennial talent. Millennials want to work with purpose, and they want their workplace to be aligned with their values. Millennials want to work for organizations that are transparent about how they’re using their technology, their resources, and their talent. Millennials have been technology enabled from the minute they could crawl, so to speak, so they have a different way of connecting and a different way of engaging, they also want to create shared value, make positive social and environmental changes and increase opportunities for disadvantaged populations. To remain innovative, impactful, and financially competitive, many companies should go outside their corporate comfort zone to design roles for a purpose-driven millennial workforce.