Graying of U.S. Workforce

The U.S. workforce today is older and grayer than ever: Many Baby Boomers have continued to work into their 60s and 70s, but their eventual retirement is profoundly changing the national worker-to-retiree ratio. Even though the senior workforce remains strong, people are retiring at a faster rate than they are being replaced with new workers, challenging critical programs including Medicare and Social Security. In fact, Social Security will be unable to make full payments to retirees beginning in 2033 unless lawmakers make significant updates to the program.

While some might complain that younger Americans are less interested in hard work, they simply represent a smaller portion of the overall U.S. population as each generation has fewer kids than their parents’ generation did. There aren’t enough millennials and Gen Zers to balance out the retiring Baby Boomers, which impacts both workforce and economic growth nationwide.

More retirees also means more demand for health care and other senior services—1 in 5 U.S. adults today provide care for family members or friends who are unable to care for themselves, which can create financial, health and workplace issues in subsequent generations. One solution to the shortage of workers and caregivers lies with increased immigration, which remains a political hot potato.

Regardless, as more seniors retire, the workforce will continue to evolve and must find ways to adapt to fewer workers to fill open positions.

The State of Gig Work 2023

Gig workers today account for a full 14 million Americans, according to a recent McKinsey & Co. report, and nearly one-third of younger adults have earned income through a gig platform at some point in their burgeoning careers. Interestingly, nearly half of U.S. gig workers have full-time jobs.

The advantages of gig work are clear: flexibility, creativity, additional income, being your own boss and the ability to work from just about anywhere. However, the disadvantages are also noteworthy, including lack of health care, other benefits and protections as well as inconsistent pay—in fact, one-quarter of gig workers earn less than their state’s minimum wage and many report being treated rudely or poorly.

That might be why this type of work is more common among lower-income brackets—only 9 percent of upper-income earners are earning an income through online platforms, according to Pew Research.

The most popular industries for gig work are recreation, construction and business services while manufacturing is on the opposite end, with only 2 percent of workers, based on a recent ADP Research Institute survey. Work can be both online (administrative, creative, finance and accounting, legal and more) as well as in-person (house cleaning, delivery drivers, yardwork, etc.).

Gig work is a side hustle for most—68 percent do it as a part-time job, according to Pew Research—while about one-third use this flexible type of employment as a main source of income. Just over 10 percent of gig workers in the United States say that they make at least half of their income from this work.

While gig work will continue to evolve and have both advantages and disadvantages, it is clearly going to be an influential part of the U.S. economy for decades and decades to come.

What Gen Z Really Wants When It Comes to Work

Gen Z—the generation of Americans born between 1996 and 2010—knows what it wants when it comes to work, careers and professional satisfaction. Not surprisingly, flexibility, money and job security top the list for this group, which represents about 20 percent of the U.S. population. As more members of this younger generation enter the workforce, successful employers will take note of their priorities.

Interestingly, they comprise a smaller share of the workforce than Gen X and millennials at just over 70 percent, and they are also better educated than the preceding generation. Overall, this generation of workers, which is more keyed into the importance of mental health and wellness, seeks meaningful work that comes with flexibility and true work-life balance.

Further, a solid salary and benefits package are also important—longer hours and micromanagement top the list of turnoffs. The flexibility of remote work is another notable plus.

Gen Z is especially interested in tech jobs, consulting, engineering and freelance work. And employers are interested in hiring more young employees—more and more companies are also recognizing that they may need to bridge the knowledge and cultural gaps among generations in the workplace.

As veterans of learning, interning and finding their first jobs during a global pandemic, Gen Z knows what it wants and is willing to wait to find the right position. Employers may need to roll out the red carpet and offer an impressive package to attract the best of the best.

From the Great Resignation to the Great Return

For the past two years, we’ve been hearing about the Great Resignation, where thousands of employees across industries resigned their jobs to pursue new passions and changed the shape of the U.S. workforce. Now it’s time to discover more about the Great Return, where workers return to the office or to more traditional roles in the staffing economy.

The Great Return hinges on flexible work conditions, an inclusive environment and the conditions for continued work-life balance.

1. Flexible work conditions: While some people have longed for a return to the office, many workers still enjoy the flexibility of working from home, even part time. Likewise, many are still contending with childcare issues and juggling multiple priorities, so successful companies need to acknowledge the ongoing need for flexibility in scheduling.

2. Inclusive environment: Accessibility needs to go further than before, recognizing those who are immunocompromised, for instance, as well as those who require accommodations for vision and hearing issues, mobility challenges, different seating arrangements and more. For the Great Return to be a great success, inclusive work environments are a must.

3. Work-life balance: For many years, many workers felt like their life was work—it dominated their time with long commutes, longer hours and sky-high expectations. Companies will need to allow for earlier and later start times to ensure easier commutes, offer personal days and make work-life balance a higher priority than ever before.

The Great Return is off to a great start; however, companies interested in cultivating a satisfied and productive workforce will need to keep flexibility, inclusivity and balance in mind when structuring their return-to-work arrangements.

Gen Z is Changing the Post-Pandemic Workforce

Gen Z—represented by the swath of years from 1997 to 2012—is leading the way for change in today’s workforce. While they are the youngest members of the work world, this generation is also the most outspoken in its request for good working conditions, flexible jobs and meaningful work. They are also more than willing to quit a job in search of a better environment or fit.

Unlike previous generations, Gen Z is more vocal in its expectation of a solid environment that includes mental health support, workforce wellness programs and flexible conditions. Work-life balance has gone from a “nice to have” to a “must have” for Gen Z. Salary is less important that a great working environment.

While their millennial managers may expect 40-plus hours a week, Gen Z is ready to knock off once their goals for the day or week are completed. They have no problem complaining about poor working conditions on social media or saying “I quit.”

According to LinkedIn data, job transitions increased by 54 percent year over year overall, while they increased by a whopping 80 percent for Gen Zers. Granted, some workers do face regret when they make a switch, but that might just mean they will move on again.

All of this has been termed a “slow up” by some in the industry—an intentional focus on slowing down in the name of better balance. Gen Z is proud to lead the way for change in slowing down and finding work that matters.

Ultimately, this generation wants to make a difference in the world. They have the entrepreneurial spirit and spark. More than 62 percent of Gen Zs surveyed by the Center for Generational Kinetics said they hoped to launch their own business down the line.

How Covid Has Forever Changed the Workforce

In the past two years, pretty much every job in the United State has changed in some way. From remote work to frontline workers, we have seen massive changes in the workplace and workforce.

What does this mean going forward? Following, discover 4 key ways Covid has altered workplace trends throughout the United States.

1. Remote work is here to stay. When companies had to quickly scramble to implement remote work policies, not everyone was sure how it would affect productivity and profitability. Remote work, however, has been a success and something that workers now expect. Interestingly, about 20 percent of professional jobs are now remote—a significant leap from pre-pandemic days, according to The Ladders’ latest work report. Millions of jobs are now at-home for good.

2. Entrepreneurs are us. Self-employment is more plausible than ever, thanks to a steady uptick in entrepreneurial activity over the past two-plus years. More and more adults are realizing their dreams of starting their own business, running their own company and following through on long-time dreams. Technology makes it easier than ever to launch and run a business, both in person and online.

3. Contract and freelance opportunities abound. Gig worker? You’ll find opportunities galore, thanks to an ongoing shift to contract, freelance and short-term work assignments that kicked off along with the Covid-19 pandemic. Whether you are picking up extra work to save for the future or prefer the flexibility of gig work, contract work offers the chance to try new fields and industries while continuing to grow your resume. Neither workplace nor employee needs to make the full-time commitment—unless the time is right—because of widespread contract and freelance opportunities. One major caveat: These positions do not come with benefits or retirement income.

4. Back to the books. If you’ve always wanted to return to school for an additional degree or simply love learning new things, the pandemic sprouted a variety of affordable, part-time and online education options. You can update your skills and knowledge base, learn at your own pace and perhaps find a new passion through the beauty of flexible education.

 What other workplace and workforce trends are here to stay in the wake of the pandemic? In addition to job changes, the industry will see more flexible arrangements and new opportunities for workers of all ages.