Why Gen Z Refuses to Work like Boomers

/// THIS WEEK

Earners,

Gen Z is rewriting the rules of work, and older generations are calling them entitled. But the data tells a different story.

Today, we’re examining why Gen Z refuses to work as Boomers did and why that’s a rational adaptation to a fundamentally different economy.

[ INSIGHT ]

Gen Z is responding to broken incentives.

The “pay your dues and get rewarded” contract that worked for Boomers doesn’t exist anymore. Pensions are gone. Wages haven’t kept pace with productivity. Housing costs have exploded. And loyalty doesn’t guarantee security; it often becomes a liability.

Boomers worked in an economy that rewarded long-term commitment with stability, pensions, and upward mobility. Gen Z works in an economy where companies lay off loyal employees without warning, wages stagnate despite record profits, and staying in one place can actually hurt your potential.

The motto has shifted from “pay your dues” to “stay ahead of the game.” You could argue that the shift isn’t generational entitlement, it’s economic adaptation.

/// DATA

Gen Z Work Preferences:

• 72% have quit or considered quitting over the lack of flexibility.

• 55% negotiate their first job offers (vs. 42% of Boomers)

• 79% who negotiated got improved offers.

• Expect 10% annual raises without promotion (42% higher than Boomer expectations)

• Change jobs 3x faster than Gen X or Boomers in early careers.

• Median job tenure: 1-2 years (vs. 4 years overall for Boomers)

The Economic Reality:

• Housing: Median home price in 1980 was ~$50-60k ($290k adjusted for inflation). Today it’s $420k +-a 45% increase

• Wages vs Productivity: Between 1979 and 2021, productivity increased 70% while hourly compensation rose only 20%

• Student Debt: Average Gen Z borrowers carry ~$20k (many have six figures). College costs have increased 180% since 1980 after inflation.

• Pensions: In 1980, 60%+ of private-sector workers had defined benefit pensions. Today: less than 15%

The Economic Context (2025):

• U.S. GDP growth: 1.4% - tepid, but not strong.

• Inflation: sticky at 2.8-3.0%

• Recession odds in next 12 months: ~33%

• Consumer confidence: 97.4 (lowest in months).

Boomer Success:

• Control over 50% of U.S. wealth despite being ~20% of the population.

• Bought homes young, benefited from rising asset values.

• Had pension plans that rewarded loyalty.

[ BREAKDOWN ]

Between 1950 and 1973, U.S. productivity nearly doubled, and real wages grew right alongside it. You could graduate from high school, walk into a factory or office, and secure stable employment with a clear path upward. The deal was simple: show up, work hard, stay loyal and in return, you got job security, a pension that rewarded every year you stayed, healthcare benefits, and a retirement plan that actually meant something.

And it worked. Boomers became one of the wealthiest generations in American history because the system delivered.

That was the blueprint.

What is fundamentally different about Gen Z from every generation before them is that they can see everything in real time.

This generation doesn’t have to guess. They have tools available, mainly on social media, where you can see the breakdown of comp packages and people online sharing exactly how much money they make. They can see, both instantly and globally, how their outcomes compare to their peers, managers, and past generations.

This information asymmetry used to favour employers. Companies knew what everyone made. Employees didn’t. That imbalance kept people in their seats, unsure if the grass was actually greener elsewhere. Now? Gen Z knows exactly what the grass looks like at every other company, what it costs, and how long it takes to get there.

The transparency didn’t create problems; it just made them impossible to ignore.

Once you have proof that the system doesn’t work the way you thought, you start to make different decisions.

Put simply: Gen Z is rejecting a contract that no longer exists, armed with data proving it never will again.

[ TAKEAWAY ]

The social contract shifted. Companies eliminated long-term commitments (pensions, job security, tenure-based raises). Workers responded by eliminating their long-term commitment in return.

If companies want loyalty, they need to offer what made loyalty rational for Boomers: job security, meaningful benefits, compensation that grows with tenure, and a proven path upward. Without those structures, expecting Boomers-style commitment is asking workers to operate against their economic interests.

Earn more,

TCE

[ MONEY TIP OF THE WEEK ]

Every January, spend 2 hours researching what your role pays at other companies using Glassdoor, Levels.fyi, or Payscale. Save 3-5 job postings for similar roles with salary ranges. This creates a “market value snapshot” you can reference during performance reviews or when considering whether to stay or leave. Knowing your external worth prevents you from staying too long at below-market compensation, one of the biggest wealth destroyers in modern careers.

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