Gen Z to overtake boomers in U.S. Canadian  workforce by early next year: report

Jordan Fleguel, BNN Bloomberg

The number of full-time Gen Z workers in the U.S. is set to surpass baby boomers in the first few months of 2024, according to a new report from Glassdoor Economic Research.

The report, released Wednesday, examined U.S. Census Bureau data, and found that the number of full-time Gen Z and boomer workers in the American workforce is currently about even.

As older workers continue retiring en masse and more young Americans reach working age, Gen Z is set to rapidly overtake the boomer generation, which made up the largest share of the U.S. workforce from the late 1970s until around 2011, according to the report.

Baby boomers are considered to be those born between 1946 and 1964, while Gen Zers are those born from the late 1990s until around 2012.

Gen Xers, born between 1965 and 1980, took over as the dominant working generation in the U.S. in 2012 before they were overtaken by millennials, born between Gen X and Gen Z, in 2018.

Millennials have since remained the dominant working generation, and won’t be overtaken by Gen Z until the early 2040s, the report estimates.

“The coming year will still represent a pivotal moment of cultural change that U.S. companies cannot ignore as Gen Z workers – who care deeply about community connections, about having their voices heard in the workplace, about transparent and responsive leadership, and about diversity and inclusion – make up a rapidly growing share of the workforce,” the report said.

CANADIAN LABOUR DEMOGRAPHICS

Canada is experiencing a similar shift in demographics, with the number of retiring baby boomers expected to grow exponentially in the coming years.

But experts predict this will only exacerbate existing labour shortages, as there aren’t enough young workers to replace the boomers exiting the workforce.

Canada's labour force growth rate has been trending downward since 2000, but the trend has intensified in recent years. This "grey wave" has been on the horizon for a while, but experts say it's now crashing ashore.

According to Statistics Canada, between 2016 and 2021 more than 1.4 million Canadians entered the ranks of those aged 55 and older, and in 2021, one in five Canadians of working age were aged 55 to 64.

CULTURE SHIFT

As demographics continue to shift, office culture is expected to follow.

For example, employers are still struggling to find the “new normal” when it comes to remote work, as many young professionals now expect flexible work profiles, even as companies have attempted to enforce stricter in-office policies. 

A recent survey of Canadian professionals by human resources firm Robert Half found that three in four respondents said a flexible work schedule is the top perk they look for in a job.

Separate Robert Half research also suggests that younger Canadian professionals have different views on certain long-standing office taboos such as discussing your salary with colleagues.

In an August survey, the firm found that 86 per cent of Gen Zers and 59 per cent of millennials reported discussing salaries with their work colleagues, while just 40 per cent of Gen Xers and 41 per cent of baby boomers said they do the same.

With files from The Canadian Press

Young professionals more likely to discuss salary with colleagues: survey

Jordan Fleguel, BNN Bloomberg

Discussing your salary with coworkers has often been considered taboo in office culture, but new survey data suggests younger generations have different views on pay transparency.

A recent survey by human resources firm Robert Half found that 86 per cent of Gen Zers and 59 per cent of millennials reported discussing salaries with their work colleagues, while just 40 per cent of Gen Xers and 41 per cent of baby boomers said they do the same.

Overall, the survey of Canadian workers found that 52 per cent of respondents said they have discussed salaries with colleagues before.

Thirty-five per cent of respondents said they are swapping salary information with colleagues equally, while 17 per cent said they aren’t sharing their own salary information even if they know what their colleagues make.

When it comes to salary negotiation, the survey found that 37 per cent of respondents said they would trust their coworkers for advice, however 44 per cent said advice from a “credible industry source” was the most trustworthy.

Meanwhile, 40 per cent of respondents said they would trust someone in a professional network outside of their own company, while 27 per cent and 26 per cent said they would trust friends or family members, respectively.

SALARY TRANSPARENCY

This latest research underscores a growing demand for pay transparency across all industries in Canada.

British Columbia recently joined Prince Edward Island as the second province to mandate that all public job postings must include wage information or a set salary range, with the government of Ontario looking to follow suit. 

Separate survey data collected by Robert Half found that the disclosure of salary ranges in job postings is now an expectation for half of all Canadian professionals when they are job-seeking.

An additional 63 per cent of respondents in the same survey said they would take themselves out of consideration for a role if an employer declines to provide salary information upon request.

METHODOLOGY

The data referenced was collected from an online survey of 596 professionals 18 years or older across Canada between Aug. 5-15, 2023. The survey was developed by Robert Half and conducted by an external survey partner.