Now that we’re in a ‘vibecession’, discover 3 consequences for your career

What do you call an economy that has come out of a slump and is showing signs of strength, but still isn’t making many people happy? The new word for it is “vibecession” – a combination of “vibe” and “recession”. Gen Z especially has low feelings about today’s economy. According to a Workhuman survey, “productivity anxiety” is highest among Gen Z with 30% battling it every day and 58% having it multiple times a week.

According to Marcie Merriman, head of Americas cultural insights and client strategy at EY, the “vibecession” explains the lack of excitement or confidence from American consumers and people in general, despite strong market indicators such as record highs in the stock market and low unemployment. But Merriman points out that among Gen Z, the 17- to 27-year-olds either in the job market or preparing to enter it, “low vips” are nothing new.

Employment Implications for General Z Workers

“We’ve been following their concern for more than a decade now, and long before the unknowns of the pandemic and rising interest rates of the past few years, I was repeatedly surprised by Gen Z’s financial fears, which often seemed to life disconnected from the realities of the marketplace,” says Merriman. “Their fears and concerns are multifaceted, including hearing cautionary tales of millennial debt and the challenges that come with it, social media elevating the importance of financial literacy. , experiencing rising tuition costs and greater financial transparency than those already in the labor market (ie, more willing to share financial data and provide insight into their struggles.) Gen Z’s concerns are a characteristic of the generation. In general, they are more financially pragmatic than consumers, employers and citizens.â€

According to Merriman, the difference between Gen Z and other generations is that current employers have adapted and accepted policies or procedures that are no longer relevant. “For General Z, it will be like entering another planet. Examples include conventional ways of working, office demands, rigid schedules with fixed hours, and the expectation of exclusive commitment to a single employer. She predicts that “vibecession” will create three reactions from American workers:

1. Employees will seek employment opportunities that provide a greater sense of security and stability.
2. Employees will seek and maintain multiple sources of income. In fact, 52% of Gen Z currently have two or more sources of income.
3. Employees will continue to have financial anxiety and fear as they move into life stages that require more independence (ie, without parents’ health insurance at age 25).

Implications for employers

Merriman emphasizes the importance of recognizing that Gen Z is already living in what comes next for all of us. She believes that if employers ignore the career ambitions of the new generation, it will come at a cost, with 44% of Gen Z workers saying they plan to leave within the next six months because their company lacks development support. career. Another recent report from Upwork reveals that Gen Z is abandoning traditional nine-to-five jobs in favor of freelancing.

Merriman expects the “vibecession” to affect employers in several ways:

1. Employers will see employee loyalty diminish and will continue to see it if employees do not feel it is reciprocated.
2. Employers will see salary transparency continue to grow in importance, especially among younger employees.
3. Employers will need to accept multiple income streams as the new norm and build in intellectual property safeguards.

Merriman acknowledges that some leaders are adapting to Gen Z’s habits and expectations better than others, noting that the best are doing more to learn from Gen Z while also guiding them on how to be more successful. .

She predicts that leaders who actively engage Gen Z in the problem-solving process can have an automatic competitive advantage. She insists that both employees and employers can make a “vibecession” to their advantage. “First, recognize that this is nothing new, but part of a battle that employees and employers may have been waging without knowing it for years. Second, make communication a two-way street. “Employers can learn as much from employees and vice versa and should continue to do so as the economy progresses,” she concludes.