Generation Z is expected to outearn older generations by 2035, according to a new study analyzing its backgrounds and consumption habits.
People born between 1997 and 2012 will represent roughly 30% of the global population within the next 10 years, according to the report released by Bank of America. The company examined debit and credit data, which showed that Gen Z spent $2.7 trillion worldwide last year. Bank of America predicts that number will increase to $12 trillion by 2030.
“In roughly the next five years, Gen Z will have globally amassed $36 trillion in income and that figure is expected to surge to $74 trillion by around 2040. Consider that in 2023 it was just $9 trillion,” the report reads. “Whether it’s due to changing diets or reduced alcohol consumption or saving and housing, Gen Z will redefine what it means to be a US consumer.”
Not only is Gen Z on track to earn and spend the most, but it is also on its way to being the most educated generation. The Pew Research Center reported that 57% of Gen Z was enrolled in a two-year or four-year college as of 2022, when the data was last available. This is a notable increase from the 52% of millennials enrolled in 2003 and the 43% of Generation X who were enrolled in 1987.
However, Gen Z also faces the problem of underemployment. Bank of America examined its own deposit data to find that Gen Zers receiving unemployment increased year-over-year by 32% last month. The bank asserted that this was a lesser increase than what was seen in other generations.
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Unemployment will likely continue to be a problem in the short term, as the economy added 151,000 jobs in February, according to the Bureau of Labor Statistics. This was less than expected, but it was still an increase from January, which saw an unusual increase in the manufacturing industry.
President Donald Trump won a sizable number of Gen Z voters last year. This came after the economy was listed among the top five voter concerns while Trump campaigned to improve the economy.