Cost of living remains the top issue of concern for New Zealand’s millennials and Gen Zs

• More than half of New Zealand Gen Zs (51%) and 44% of millennials say they feel stressed or anxious at work all or most of the time
• As Gen Zs and millennials rethink the role of work in their lives, work/life balance remains a top priority with flexible work arrangements, including part-time jobs growing in popularity
• 85% of New Zealand millennials would consider looking for a new job if their employer asked them to go on-site full time
• New Zealand Gen Zs and millennials cite the cost of living as their top societal concern

Auckland, 30 May 2023 – Deloitte’s 2023 Gen Z and Millennial Survey has revealed that despite acknowledging some positive changes in the way they work, these generations are deeply concerned about their futures.

The annual survey, now in its 12th year, gathers insights from more than 22,000 Gen Z and millennial respondents across 44 countries, including 501 New Zealanders. The report underscores continuing concerns about personal finances, climate change, and mental health, and examines a shifting relationship with work. These issues weigh heavily on Gen Z and millennial respondents, both in New Zealand and around the world.

Deloitte New Zealand Human Capital partner, Lauren Foster says “As the COVID-19 pandemic recedes, we can see that Gen Zs and millennials’ experiences in the workplace have evolved. Though the pandemic has clearly left some negative societal legacies it has also ushered in some positive workplace trends.”

“We are seeing members of these generations express desires for greater work/ life balance and push their employers on the issues that matter to them, like the environment. But we can also acknowledge their marked concern for the state of the world and the futures that they once imagined for themselves.”

Gen Zs and millennials are seeking greater flexibility and balance.

Gen Z and millennial respondents are seeing employers make progress in some key areas since pre-pandemic times. Globally, approximately one-third of Gen Zs and millennials in full or part-time work say they are very satisfied with their work/life balance, compared to only one in five in 2019.

The pandemic prompted a rethinking of the role work plays in their lives. While more than half of New Zealand millennials and 41% of Gen Z’s say their job is central to their identities, they still place a very strong focus on work/life balance — it is one of the top traits they admire in their peers, and their top consideration when choosing an employer.

Gen Zs and millennials also seek flexibility in where and when they work. The majority of New Zealand respondents would even go as far as saying they would consider looking for a new job if their employer asked them to on-site full time.

Persistent stress and burnout are straining these generations.

Stress levels are particularly high among all respondents and New Zealand saw even higher levels than the global rates with more than half of Gen Zs (51%) and over four in 10 millennials (44%) stating they feel stressed all or most of the time. Stress levels are even higher among women, LGBT+ respondents, ethnic minorities, and those with disabilities.

Respondents are also struggling to disconnect from work, with one fifth of New Zealand Gen Zs and a quarter of millennials saying that they answer work emails outside of normal working hours at least five days a week.

Cost of living remains a top concern.

In alignment with global figures, New Zealand respondents continue to cite the cost of living as their top societal concern, above unemployment and climate change. Just under half of New Zealand Gen Zs and millennials (49%) say they live paycheck to paycheck. Interestingly, this year a quarter of New Zealand millennials have cited crime and personal safety as a top issue of concern as well.

Roughly six in 10 Gen Zs and two-thirds of millennials think the economy will worsen or stay the same in their country over the next year. Among them, many think that this will result in it becoming harder or impossible to ask for a raise or promotion, get a new job, or seek greater flexibility at work. Their economic concerns are also impacting their ability to plan for their future on a more personal level, with three quarters of New Zealand Gen Zs saying it will become harder or impossible to buy a home.

Despite their desires for better work/life balance, many New Zealand Gen Zs (45%) and millennials (29%) have taken on either a part or full-time paying job in addition to their primary job to make ends meet. Top side jobs held in New Zealand include professional gaming or eSports, working in a restaurant or retail store and selling products or services online.

The drive for greater environmental sustainability and social impact is guiding lifestyle and career decisions.

More than half of respondents have felt worried or anxious about climate change in the past month, and most say they are willing to pay more to purchase environmentally sustainable products or services in a bid to help combat this.

Climate concerns also play an important role in Gen Zs’ and millennials’ career decisions. These generations are researching a brand’s environmental impact and policies before accepting a job, and even changing jobs or sectors due to climate concerns.

“Gen Zs and millennials want to be empowered to drive change within their organisations, and their ability to do so in relation to social issues has the potential to make or break the recruitment and retention of these generations,” says Foster.

They tend to feel they can positively influence their organisations in areas related to products and services, DEI, development and training, and workload management, but influence in other critical areas, such as social impact and sustainability, is lagging. About half of New Zealand Gen Zs and millennials say they are pressuring businesses to act on climate change, but only a small portion feel they can influence their organisation’s sustainability efforts.

Employers can—and must—act.

Organisations that actively listen and help address the needs and concerns of these generations will improve business resiliency and implement actionable change in our world.

“This year’s findings might help organisations to better understand the unique combination of challenges that our Gen Zs and millennials are facing. Hopefully, it can help to drive change that will not only boost productivity but also attract and retain the best talent,” adds Foster.

To learn more about the Deloitte Global 2023 Gen Z and Millennial Survey and the Mental Health Deep Dive based on the findings visit: www.deloitte.com/genzmillennialsurvey.

Methodology

The Deloitte Global 2023 Gen Z and Millennial Survey reflects the responses of 14,483 Generation Zs and 8,373 millennials (22,856 respondents in total), from 44 countries across North America, Latin America, Western Europe, Eastern Europe, the Middle East, Africa, and Asia Pacific. The survey was conducted using an online, self-complete-style interview. Fieldwork was completed between 29 November 2022 and 25 December 2022. In addition to the survey, in March 2023, qualitative interviews were conducted with 60 Gen Zs and millennials from Brazil, Germany, India, Japan, the UK, and US.

As defined in the study, Gen Z respondents were born between January 1995 and December 2004 and millennial respondents were born between January 1983 and December 1994.

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