Why Is Generation Z Poorer Than Expected: A Commentary

Generation Z is coming of age under economic conditions that differ sharply from those faced by earlier generations. Across both advanced and developing economies, rising housing costs, persistent inflation, insecure work, and structural changes in education and labor markets have combined to place young adults under sustained financial pressure. This article examines the global economic position of Gen Z through a comparative, evidence-based lens, moving beyond country-specific narratives. Drawing on data on wages, housing affordability, debt, and employment, it challenges the view that Gen Z’s struggles reflect weak work ethic or cultural attitudes. Instead, these difficulties are situated within broader macroeconomic forces, including asset inflation, post-crisis monetary policy, demographic shifts, and the erosion of traditional routes to upward mobility. While wages for Gen Z are rising faster than those of some older cohorts and early homeownership rates appear higher in select contexts, these gains often fail to keep pace with living costs and long-term insecurity. The article argues that Gen Z’s economic distress carries wider implications for productivity, social stability, and intergenerational trust, underscoring the urgency of policy attention to a cohort that will soon shape the global workforce and electorate.