Impact of COVID-19 on Gen Z

More than one in six Gen Z employees have stopped working due to COVID-
19, reported the International Labour Organisation (ILO). Those who still have
jobs have seen their working hours cut by 23%.

The report also found that a rise in youth unemployment since February 2020
is affecting females more than male workers.
Besides impacting their current job prospects, the crisis has disrupted their
education and training. This can lead to a lasting impact on their careers long-
term and a domino effect on the recovery of businesses in the post-crisis
world.

“The COVID-19 economic crisis is hitting young people – especially women –

harder and faster than any other group,” said Guy Ryder, director-general at
ILO. “If we do not take significant and immediate action to improve their
situation, the legacy of the virus could be with us for decades.

“If their talent and energy is side-lined by a lack of opportunity or skills it will
damage all our futures and make it much more difficult to re-build a better,
post-COVID economy.”

Today’s global recession, predicted to be the worst since the Second World

War, may have a worse-off effect on the “lost generation” if they lack support
from governments as well as industry players.

“From the economic recession a decade ago to the Fourth Industrial

Revolution, millennials and Gen Zs have grown up in a unique moment in time
impacting connectivity, trust, privacy, social mobility and work,” said Michele
Parmelee, global chief talent officer at Deloitte.

“This uncertainty is reflected in their personal views on business, government,

leadership and the need for positive societal change agents.
“As business leaders, we must continue to embrace the issues resonating
most with these two generations, or risk losing out on talent in an increasingly
competitive market.”

The impacts of COVID-19 have extended into all areas of life, including how
we travel, work, shop, socialise and engage with education. While the impacts
of COVID-19 and changes inbehaviour are being felt across all generations,
the impacts are being felt by the emerging generations more so than their
older counterparts.

Generations Y and Z are the most likely to say COVID-19 has had an extreme
or substantial impact on their life so far. Being in their teens and early
twenties, this life stage for Generation Z is normally characterised by
education and
study, socialising with friends after school or during breaks at university.
Weekends are normally filled with sport and shopping, going out or hanging at
a friend’s place.
Goals and dreams of Generation Z are to do well in exams, spend quality time
with friends and work to save up for travel adventures. COVID-19 has
changed this. Now, many Generation Z’s are being schooled from home or
going to zoom lectures.

They are cancelling travel plans, social engagements and even

opportunities to see family members not living with them. The economic
impacts of COVID-19 are also being felt by younger generations seeking to
establish themselves in the workforce.

Younger generations are more likely than their older counterparts to have felt
the biggest impact financially (33% Gen Z and 37% Gen Y compared to 28%
Gen X, 20% Baby Boomers and 12% Builders). The impacts in the job market
in the first few months of COVID-19 have been unparalleled since
the Great Depression.

The ABS found that there were 900,000 who had a job in March 2020 that
were unemployed just a month later in April. And twice as many as this, 1.8
million were stood down or had reduced hours from March to April.1
These job loss rates are highest for those under 20 with almost one in five
(19%) losing their job.
For those aged 20 to 29 more than one in ten (12%) have lost their job while
just 5% of those aged 30 to 69 have lost their job. This means that those
under 20 are almost four times more likely to have lost their job than those
30 and over.

Being in a very social life stage has meant social isolation and social
distancing have changed the behaviour of Generation Z in significant ways.
More than two in five Gen Zeds (42%) say an event they were going to attend
has been cancelled and 30% say they were unable to visit someone due to
selfquarantine, more so than Gen Y (22%), Gen X (22%), Baby
Boomers (13%) and Builders (14%).

The suspension of sport and entertainment events is also having a greater

impact on the emerging generations. Gen Z and Gen Y are the most likely to
say that the cancellation of sport/entertainment due to COVID-19 has had an
extreme or substantial impact on them personally (40% Gen Z and 42%
Gen Y compared to 29% Gen X and 15% Baby Boomers).

THE OPPORTUNITIES AND CHALLENGES OF SOCIAL

ISOLATION

While there have been some unique challenges with social isolation, it has
also provided some benefits to Generations Y and Z, which they hope to
keep. The main benefit for the emerging generations was in prioritising
financial saving, followed by more time with family/household members. Gen
Z were more the most likely to be spending more time on hobbies and
creative pursuits, trying out a new exercise routine and spending more time
praying/spiritual pursuits. Interestingly, they were also the most likely
generation to be enjoying offscreen activities and spending more time in
nature.

On the other hand, Gen Y were the most likely to prioritise financial saving,
spend more time with family/household members, spend more time cooking
and baking, and working from home. The biggest difference between these
two generations is working from home. Two in five (40%) Gen Y enjoyed
working from home and want to keep it, compared to 27% Gen Z.

THE FUTURE OF WORK

Social distancing measures have driven many people to work from

home, with almost three in five (58%) saying their job allows them
to do so.
While this poses great change in the immediate term, it also
provides opportunities for innovation about the future of work.

Overall, more than three in four agree that working from home will
become the new normal (78%) and would stay longer with their
employer if they were offered more remote working or flexible
working options (76%).

Seven in ten Gen Z believe working from home will become the
new normal (70%) compared to eight in ten Gen Y (80%). It is not
without challenges though, with 74% of Gen Z and 66% of Gen Y
agreeing that working from home would be challenging with other
people at home.

Gen Y also agree that the blurring of work and home has been the
biggest challenge while working from home (44%), only after the
challenge of social isolation (50%). There is an interesting
difference between Generation Z and Generation Y when it comes
to working from home.

Generation Z are the most likely to say that they are less
productive when working from home (33%), while Generation Y
are the most excited to be working from home.

Gen Z are also more likely to say that they have experienced
working from home and do not want it to continue (37%), while
Gen Y are more likely to say they are experiencing working from
home and they do want it to continue (40%). These differences
can be attributed to the different life stages these generations are
in. Generation Z, those aged 11-25 are only just beginning their
careers, and even when they are working they are looking for
multiple needs met at work – especially social interaction and
workplace culture which can be lost when people work remotely.
While Gen Z are the least likely to think working from home/remote
working will become the new normal,

Gen Y and Gen X are the most likely to stay longer if this were
offered to them.

For Generation Y, work/life balance and flexibility have always

been key workplace expectations, and even more so today as they
are in the key family forming life stage and juggling multiple and
competing priorities. Remote working has many benefits, but it can
also pose challenges for productivity, social connection and
opportunities for collaboration.

In a study it is found that 68% of workers agree that the

culture and output is best when everyone is working in one place
with a degree of flexibility for remote working