According to a recent J.P. Morgan Research study, the probability of an economic recession now sits at 60%, a significant jump from 25% in March. Meanwhile, the average college tuition inflation rate is 8%, meaning the cost of attending college doubles roughly every nine years—even as curriculums often remain unchanged. Entry-level jobs continue to demand a minimum of three years of experience post-graduation. Younger generations are less confident in their ability to become homeowners, and to top it all off, eggs are currently eight dollars a carton.
Gen Z—currently aged 13 to 28—succeeds Millennials and precedes Gen Alpha as the first generation of true “digital natives.” But beyond their early exposure to screens and software, Gen Z has inherited a long list of economic challenges: rising inflation, mounting debt, and a job market that grows more competitive by the day—all while navigating a nonstop stream of unprecedented socio-political events.
A Talker Research poll for Newsweek revealed that Gen Z carries the highest average personal debt of any generation at $94,101. Compounded by skyrocketing living costs and limited financial education, many Gen Z’ers are struggling under the weight of credit card debt and economic instability.
Gen Z is entering a labor force that’s more competitive than ever. “They [Gen Z] are in so much competition with so many other folks,” said Jade Walters, founder of The Ninth Semester. “It’s not just the new grads who are navigating this space. It’s also people who were recently laid off and have over 10–15 years of experience. There are so many people fighting for the same entry-level job opportunities.”
Recent grads bear the brunt of these challenges. Lauren Winn, a Gen Z student about to earn her Master’s in Communications from Old Dominion University, shared concerns about her future in today’s volatile landscape. “My family and I are a household that thrives on Social Security, Veterans Aid, and Medicaid. But if Trump peels all of that away, what will be our foundation?” she asked.
According to NewsNation, 53% of Americans rely on government aid for at least a quarter of their income. Despite her advanced degree, Winn challenges the assumption that graduate students automatically earn more. “Those who already come from professional backgrounds have higher chances of earning more money, but I mainly completed internships,” she explained. “If I can’t adequately support myself on my own with one job, I might as well stay home with my parents until I can afford to live by myself.”
What does all of this mean for Gen Alpha? Born between 2010 and 2025, Gen Alpha is growing up in an era defined by AI integration, social media saturation, and global digital fluency. Unlike Gen Z, who adapted to tech, Gen Alpha is being born into it. Their world is shaped not only by digital innovation but also by increasing automation—potentially limiting access to certain job sectors in the future. Yet, just like Gen Z, they are showing early signs of social consciousness—gravitating toward causes such as mental health, social justice, and politics while navigating the lingering effects of the COVID-19 pandemic and a resurgence of Trump-era ideology.
While it’s still too early to fully understand the economic conditions Gen Alpha will inherit, many believe they’re on track to become the generation with the greatest spending power in history. “There are now more opportunities than ever to begin career exploration as early as middle school,” said Walters. “For Gen Alpha, I would encourage them to start investing in their future as soon as they can.”