the shift from baby boomers to the smaller Gen Z is likely to make the tight labor market an ongoing challenge“This may not be something people are thinking about right now because they’re just trying to worry about next week or next month, but in terms of the next couple years, this is what they need to be paying attention to,” Frey toldFrey said employers and communities will need to invest in workforce development for younger generations.
But there were some exceptions. Atlanta is the eighth-largest metro in overall population, but only has the 27th-largest raw gap. Houston is the fifth-largest metro, but its gap ranks 17th. Provo, Utah, home of Brigham Young University, was the metro area where Gen Z outnumbered millennials by the largest raw total and the highest percentage.
Other college towns, such as Columbia, South Carolina ; Tucson, Arizona ; and Syracuse, New York , also had strong Gen Z populations relative to the millennials, but they'll need to hold on to those students after they graduate to avoid the demographic challenges facing other metros.Experts say the entrance of the relatively small Generation Z at the same time as the large baby boomer generation exits the workforce is one of the biggest factors shaping the entire labor market.
“What is shocking is how many companies are still waiting it out. That this is going to get better. No, it’s not. It will get better than where we are now, but we have been at this trajectory for some time now,”
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