Latest stats about Millennial workers: grab the Tums
As if employers weren’t already scratching their heads enough about Gen Y, the recession has made it even more difficult for managers to understand them. And, unfortunately, the latest round of data to surface about Millennials and their work environment will be less than comforting for most employers.
The generation that expects everything is only going to get more in the coming years, according to a recent study done by the Center for Labor Market Studies. By the spring of 2009, less than 30 percent of work-aged teens (16-19) were employed in the labor market, the lowest levels seen since WWII. So not only are mom and dad having to shell out more allowance money while they’re in high school, but they should expect to see them back in about 5 years. The same study also revealed that less than half of the nation’s 4 million college graduates age 25 and under were working in jobs that required a college degree. That’s down from 54 percent for the same period last year. And top that off with this snippet from September 4th’s New York Times:
According to today’s job report, the overall unemployment rate (the percentage of people in the labor force not working but looking for work) in August rose to 9.7 percent, its highest level in 26 years. The teenage unemployment rate, however, is at 25.5 percent, its highest level since the Bureau of Labor Statistics began keeping track of such data in1948.
And if the picture wasn’t already difficult for employers, consider some additional research done by fahrenHEIGHT360.com. According to their polling data, 70 percent of Millennials will leave their first job within 2 years. And by 2015, Millennials will comprise 40 percent of the entire labor market.
So, let’s get this straight: Only 30 percent of teenagers are currently in the work force; for every 1 that’s working, 3 can’t get a job; and when the ones that go to college get out, they can expect a job that doesn’t require a degree for the next few years. Oh, and the ones that do find a job, will leave it within 2 years. And to top it all off, this massively inexperienced labor force will dominate the entire labor market in the next 10 years.
For all the talent managers out there who just choked down a handful of Tums, just take a deep breath, swallow that mouthful of fruity chalk and read onward. There is hope. First of all, I think everyone in the HR field should read Tammy Erickson’s article about the rising leadership of Generation X. Xers possess many traits that counteract the misfortunes of Millennials and are young enough still to provide solid leadership and contribution at all levels of a company. And from our perspective, Xers should be a key target for your employment branding.
Secondly, the Millennial generation is massive; therefore, the 25 percent who worked through high school and got a good job immediately after graduating from college are a significantly larger pool of talent than you might imagine. They will be smart, competitive and ready to work hard to keep a job because they had to work hard just to get one. They will be amazingly tech savvy, resilient and able to wear many hats. They typically work well in teams, desire inclusion and are the kind of people that generally believe that there is a solution to a problem, even if it seems like there’s not one. This core group that represents the best of their generation is passionate, optimistic and ready to take on new challenges. The only problem is: everybody wants them. I guarantee your best competitors already have a plan to load up with this group to backfill for the cascading tide of Baby Boomers exiting the workforce in the next 10 years.
So the real question is, what are you doing today to attract this group and retain them? If companies don’t start this process now, they will most likely end up with the 28 year old who’s working his absolutely first job.
