The effects of Gen Z (iGen or Instagram Generation) on the economy
By 2030, Generation Z will start inheriting and changing the economy, here’s where they’re congregating and how they will be affecting the commercial sector.
14 Jul 2020
By 2030, Generation Z will start inheriting and changing the economy, here’s where they’re congregating and how they will be affecting the commercial sector
Gen Z is coming. And that’s hugely significant to the workforce and the workplace. First, the numbers:
By 2030 members of Gen Z, that is people born between 1997 and 2012 will make up more than 1 billion of the world’s population and will comprise 31% of the working age population of the world’s most influential business hubs.
That will make for a significant reset of some of the biggest metropolitan areas on earth and will accelerate the rise of emerging markets as influential epicenters of the world economy. Middle East and Asia Pacific will see a boost thanks to swelling Gen Z populations. CBRE’s Global Outlook 2030 report shows Dubai is ranked 2nd (44% in Alpha markets) and Abu Dhabi ranks 2nd (35.6% in Beta markets) globally.
Gen Z is coming. And that’s hugely significant to the workforce and the workplace. First, the numbers:
By 2030 members of Gen Z, that is people born between 1997 and 2012 will make up more than 1 billion of the world’s population and will comprise 31% of the working age population of the world’s most influential business hubs.
That will make for a significant reset of some of the biggest metropolitan areas on earth and will accelerate the rise of emerging markets as influential epicenters of the world economy. Middle East and Asia Pacific will see a boost thanks to swelling Gen Z populations. CBRE’s Global Outlook 2030 report shows Dubai is ranked 2nd (44% in Alpha markets) and Abu Dhabi ranks 2nd (35.6% in Beta markets) globally.
What makes Gen Z so special?
Gen Z are the first ‘digital natives’ —they’ve never known a world without the technological tools many of us still marvel at. As such, they’re at the forefront of redefining what productivity is, in everything from how the workplace is laid out to their expectations of how to get the job done by any means necessary. They’re also environmentally aware, demand flexibility in their work and life options, and embrace fresh perspectives rather than falling back on the old workplace hierarchy.
- They are early starters. This means they are more likely to go straight into the workforce at the age of 16.
- They are more likely to have several sources of income because of the rising gig economy.
- They are more entrepreneurial, meaning they are more likely to make the money they need quicker.
- They are more likely to investigate more affordable housing markets.
While most teenagers are obsessed with their phones, Gen Z are also more native to technology and e-commerce than any other generation and are therefore more open to other options.
Click and collect
Whilst many operate a great deal online, 81% of them prefer to go to stores. “They are huge fans of what’s known as click and collect, meaning they click online, and they like to pick it up in the store so they can get the tangible experience, they can get the social experience, and then the key is that they are buying more. People buy up to 70% more goods when they walk back into the store, than if they just buy it online” said Anthony Spary, Head of Retail at CBRE.If history is prologue, Gen Z seems more interested in suburban living as opposed to life in the big city. Gen Z renters are willing to sacrifice location for space, amenities, value, connectivity and community. Environmental, Social and Governance (ESG) investing will play an increasingly important role as they will be paying attention to details like construction materials and ethical employment practices of builders. They will be a “highly mobile generation”, moving through multiple careers, numerous jobs and moving home many, many times, and they are and will continue to be constantly on the go, moving from place to place and used to a world of flexible, freelance work.
Attracting Gen Z
The values and expectations of this generation must be front of mind for the property industry as they are soon to be the main consumer of space. By 2030, 75% of the workforce will consist of Millennials and Gen-Z. Already meeting the needs of Millennial talent has been described as a ‘race’ with property firms looking to out-tech, outfit and out-maneuver their competitors by retrofitting portfolios and looking to flexible-workplace providers. And brokers meanwhile will continue to leverage social media through Instagram, podcasts and TV shows for publicity.However, until earlier of this year, many companies were actively looking for young Gen Z talent, but with the onset of COVID-19 and the inevitability that we are headed toward a recession around much of the world, it seems that this generation is now in the position where internships, summer jobs and full times job are being cancelled or at best deferred to a later date. The global pandemic and its aftermath call for flexibility, agility, and resilience on the part of younger people and the older generations need to support them and make room for them. It is a tough time to be a young person on the job market and it will probably be that way for longer than we think.