I’ve been writing about millennials since 2018 when they were 22 to 37 years old. Coming of age during the rise of social media and online shopping, along with some unique economic challenges, puts this group in the spotlight.
People were fascinated by what the children did. Millennial stereotypes of eating avocado bread and living longer with their parents had the world particularly intrigued – who was this generation that seemingly couldn’t grow up?
Well, they’ve grown up. The oldest millennials turn 43 this year, according to Pew Research Center Definitionand most of the generation has entered their peak home-buying and family-raising years.
Soon, the generation will fully age out of their 20s and leave adulthood behind. The youngest generation, born in 1995 and 1996, turns 28 and 29 this year, and there are just under 9 million 20th-century millennials left, according to the US Census. This group falls into cusper territory, those born between generations and are part of the larger “Zillennial” microgeneration.
Not many millennials, not quite Gen Z, these late 20-somethings have been shaped by the pandemic that occurs early in their careers and early years of wealth creation. In some ways, they’re actually doing better than their older millennial peers, and their struggles point to larger cracks in America’s social support systems.
A bridge in the workplace
Diana Elliott, vice president of programs at the Population Reference Bureau (PRB), told Business Insider that a person’s late 20s have always been peak career years. However, these late 20-somethings saw the pandemic shorten their typical office experience more than the rest of their generation. They were only 24 and 25 years old at the time, in the workforce for just a few years, and they fear this gives them an uneven footing in the workforce.
“They feel it has negatively impacted their ability to learn the soft skills that come with working in an office and may lead to missing out on growth opportunities,” said Gabby Davis, a career expert at Indeed and a Millennial herself. new, to Business Insider. But Davis said Indeed’s research shows they don’t want to go back to a full-time office. While back-to-the-office mandates have the potential to drive them away, she says younger millennials are more likely to stay in a job than Gen Z, who view their jobs with more need.
Cuspers often act as a bridge in the workplace, but younger millennials can find it difficult to bridge this generation gap when reporting to older colleagues and managing younger ones, Davis said. But they’ve already pushed for greater flexibility, communication and transparency at work, which she thinks could help ease that transition. Millennials, now the largest generation, will continue to move into leadership roles as they age into their 30s and 40s, which Davis believes will help “foster diversity, accountability and more meaningful workplaces.”
As the generation ages, Elliott predicts they will begin to take over the roles of boomers as they retire. “We’re going to see a lot of departures from the workforce, not just now, but in the next decade,” she says. “So it could be a really interesting time for opportunities for young millennials in the job market.”
Roll in the dough
At first glance, it looked like the pandemic could also jeopardize the wealth trajectory of younger millennials and older Gen Zers. Older millennials struggled with the aftermath of the Great Recession and the 2008 financial crisis, the rising cost of living and $1.2 trillion in student loan debt.
In 2018, the Fed of St. Fortunately, that didn’t happen: By 2022, their wealth levels were 37% above expectations. But the wealth of younger millennials and older Gen Zers made an even sharper swing at 39%.
This wealth is even more striking when compared to their older peers of the same age. In 2013, 24- to 33-year-olds had a typical wealth level of $16,567, according to data compiled by St. Louis Fed told Business Insider. That’s more than doubled (even accounting for inflation) for those aged 26 to 32 in 2022, who have a typical wealth level of $55,760.
It shows how much the macroeconomic context can change even within a generation. The data scientist of St. . “Younger millennials have made it to 2022 through many pandemic disruptions and found themselves with a much larger amount of accumulated wealth.”
Ricketts said the shorter duration of the coronavirus recession and the more aggressive federal policy response saved them. An infusion of cash from the government and a lockdown that prevented us from spending on travel and dining out “boosted many financial outcomes across the wealth spectrum,” making 2022 an overall high mark for wealth accumulation.
By becoming creative homeowners
Real estate was a key driver of millennials’ wealth gains, the Fed finds, as an epidemically hot housing market boosted home values. But aren’t millennials able to buy homes, especially those who have had less time to save? Ricketts said despite affordability issues, some have managed to make it work.
Younger millennials are getting creative about becoming homeowners, explained Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors. They’re living at home first to save money or form partnerships – 19% of those aged 25 to 33, which includes younger millennials, are unmarried couples, the highest NAR sees among any generation in the Generational Trends Report.
They are also more likely to receive down payment transfers, often from family members who help with the purchase. Perhaps this is why 55% of them prefer to live near friends and family; the only other generation that comes close to this preference are retirees. “They’re moving away from their family members’ homes before they buy at higher rates, so maybe they already have that strong family connection,” Lautz said. “During COVID, many people redefined what is important to them, and family is more important.”
A mixed bag for women
Young millennial women have especially seen their economic well-being improve; increased educational opportunities cause them to earn more than their mothers and grandmothers did compared to men, according to PRB research. “The wage gap is closing with each successive cohort,” Elliott said.
Because younger millennial women are focused on their careers, they are continuing the general millennial trend of delaying family formation. The US birth rate declined by 3% between 2022 and 2023, reaching a historic low. “What this suggests is that younger millennials are likely to have smaller families,” Elliott said. This is neither good nor bad, but it interacts with other economic factors, such as housing affordability, getting a foothold in the world of work, and student debt.
Of course, generations are nuanced. Not everyone is doing well; some millennials are stuck in poverty and young millennial women have lost ground in terms of health and safety. “The systems and supporters are not in place to figure out how to best help people,” Elliott said. “We need this now. In terms of maternal mortality, it reflects many ways in which the US is not doing as well as its counterpart countries.”
And some of the accumulated wealth of young millennials has been eroded by inflation, Ricketts said. However, he hopes that “the wealth results we see in 2022 can be an optimistic note and a source of strength going forward.”
He noted that young millennials who invest their wealth well are more likely to consume and drive economic growth. “Having entrepreneurial aspirations while having assets in hand allows you to pursue those dreams,” he said. So, by investing in yourself and your passions, it can also benefit the wider economy.”