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Millennials Pass Gen X as Largest Generation in the U.S. Workforce

Pew Research's Millennials surpass Gen X'ers as the largest generation in the U.S. labor force reports that in Q1 of 2015 Millennials surpassed Generation X to become the largest share of the American workforce.

The report chart below shows the generational shifts in the U.S. workforce over the past two decades.

 

An interesting sidelight to the report is Pew's definitions of age cohorts. Somewhat surprisingly there are no official demographic cohort definitions, so different groups use different definitions. Pew's are to the right.

Most everyone uses the same definitions for the older generations, but there are differences in how people define Gen X and Millennials.

For example, Pew ends the Millennial generation in 1997(see chart on right).

We define Millennials as those born from 1981 to 2000.

In most cases differences of a few years one way or another won't really matter or change the results of most surveys.

But it does make a difference in generational size. Obviously, the total size of Gen Y is larger by our definition than Pew's.  

So while it's not a big deal overall, it's worthwhile to check the definitions when you see sizing data by generation.

For example, we recently saw a report that defined Gen Y as those born from 1980 to 2007. The report focused quite a bit on how big Gen Y is relative to other generations.

Had we not known they defined the generation much more broadly than most, we might have misinterpreted their data.

Goldman Sachs on Millennials

Goldman Sachs has an excellent infographic/report on millennials (born 1980 to 2000).  

They describe Millennials as:

Millennials have come of age during a time of technological change, globalization and economic disruption. That’s given them a different set of behaviors and experiences than their parents.

They have been slower to marry and move out on their own, and have shown different attitudes to ownership that have helped spawn what’s being called a “sharing economy.”

They’re also the first generation of digital natives, and their affinity for technology helps shape how they shop. They are used to instant access to price comparisons, product information and peer reviews.

My favorite report chart is below and shows the large drop in the percentage of young adults who are married and living in their own household.  

This report is one of the best, quick overviews of Millennials and their attitudes I've seen.

Millennials Like Experiences (So Do Others)

According to Fueling the Experience Economy, a research report released by the events company Eventbrite, the average millennial (aged 18-34 in their study) prefers live experiences over material things.  

Key millennial findings from the study:

• 77% say their best memories come from experiences
• 69% say that their experiences make them feel more connected to their communities, other people, and the world. 
• 78% say they would choose to spend money on a desirable experience or event over buying something desirable
• 69% experience the fear of missing out (FOMO) we they can't attend something that their family or friends are going to.

Of course Eventbrite is in the business of selling experiences - I love their tagline: Dance more. Learn more. Taste more. Do More - so I wouldn't expect them to find otherwise.

It's unclear whether or not they know way back in 1998 a couple of consultants coined the term "the experience economy" and urged companies to offer interesting and unique experiences in addition to products and services.  

Back then the oldest millennials were 16, so the original target market for the experience economy were folks much older than millennials.    

In other words, everyone likes experiences. 

We agree with Eventbrite that the experience economy is growing and have seen many examples of it in our work. 

Millennials' Standard of Living Lower than Parents

Pew Research's article Generational Equity and the "Next America" has a depressing assessment of the economic fortunes of American millennials (roughly aged 21-33):

Today’s young have the unhappy distinction of being the first generation in modern history to have a lower standard of living than their parents’ generation had at the same stage of the life cycle. Despite collecting more college diplomas than any generation in history, Millennials lag behind their same-aged counterparts of yesteryear on virtually all key indicators of economic well-being – including employment, income, wealth, debt and poverty. Half a century ago, the old were by far the poorest age group in America. Today it is the young.

The economic troubles of this generation are resulting in millennials being more frugal shoppers and having lowered overall economic expectations.  Their shifting consumer patterns are impacting everything from auto sales to the housing market.  

Millennials, Adulthood, Work and Families

Several good, recent studies and articles on Millennials and how they view kids, families and work.  These include:

Pew Research - Millennials in Adulthood: Pew consistently does excellent research and this report is another example.  

It covers a wide range of topics related to how Millennials are behaving now that they are adults.

Key quote:

Now ranging in age from 18 to 33, they are relatively unattached to organized politics and religion, linked by social media, burdened by debt, distrustful of people, in no rush to marry— and optimistic about the future.

What is Work to a Millennial: Great article in Chief Learning Officer on how Millennials view work compared to other generations.  Key quote on how this cohort views work:

Work is a means to an end. Work-life balance is their mantra. Millennials therefore (also called Gen Y) work to play. Not only will the millennials job- and industry-hop, but they will career hop, too. Millennials approach work as an experience. The end game of a career is that they made a difference in the world. Jobs are merely opportunities to learn, experiment, gain experience and become more well-rounded.

HBR's Is Work-Family Conflict Reaching a Tipping Point.  I rarely listen to podcasts lasting more than a few minutes, but this 15 minute interview with the author of Baby Bust was more than worth making an exception for.

Excellent discussion of how Millennials view families and kids.  The quick summary is Millennials are just as interested as prior generations in having kids, but they aren't sure they have the time and money to raise them.  

What I really liked about all of these is the information is presented without the hype, drama and complaining usually associated with articles on Millennials.  

Baby Boomer Versus Millennial Brains

An interesting article from Nielsen compares the kinds of advertising Baby Boomers and Millennials (also called Gen Y) respond to. According to Nielsen:

Baby Boomers: Nielsen research finds that Boomers prefer clever, light-hearted humor (rather than mean-spirited) and relatable characters who are Boomers themselves or not much younger. 

Millennials: Millennials prefer off-beat, sarcastic and slapstick humor. Like Boomers, they respond to characters that are relatable to them and their life stage. Highly arresting visuals (special effects, unexpected visual elements) will best capture their attention.

They also have a chart showing brain differences between the two age cohorts.

 I was going to make several light-hearted yet sarcastic comments on this chart, but I got distracted.  

Campbell's Soup Learning From Food Trucks

The venerable consumer products company Campbell's is attempting to spice up their line-up of soups and other foods in an attempt to ramp up sales and earnings.  To accomplish this, they've been studying food trucks.

Key quote from an article from NewJersy.com on Campbell's research:

"... went to such "hipster hubs’’ as Austin, Portland and San Francisco to study the rituals and preferences of people in their mid-20s and 30s. They shopped with them. They ate at their favorite food trucks, neighborhood restaurants and, sometimes, they ate home-cooked meals in their homes."

What they found was hippsters in their 20s and 30s "are restless spirits with adventurous tastes." They also found this cohort likes food trucks.

Based on their research, Campbell's is launching a series of new products with "exotic-sounding soup varieties, edgy graphics on packaging and new skillet sauces that promise easy-to-prepare, gourmet-sounding dinners."

In other words, they're trying to create a line of food products that match the convience, quality and eclectic recipes of food trucks.  

Still think food trucks are a fad?

Millennial Myths

Good article on Monster's blog called Millennial Myths and the Truth About Gen Y Workers.  It covers 5 of the bigger misconceptions about the Millennial generation (born 1980 to 2000).  

The 5 Myths are:

1. Gen Y is lazy
2. Gen Y is apathetic
3. Gen Y lacks morals
4. Gen Y has trouble finding jobs
5. Gen Y thinks they are smarter than you were at their age

I will refer you to the article for the Gen Y "truths", which I agree with.

Oh, and by the way, Gen Y is smarter than you were at their age.

Gen Y Not Interested in Cars

There's been a flurry of articles on Gen Y (also called millennials, born 1980 to 2000) not being as interested in owning cars as prior generations.  Examples include:

Business Week's Gen Y Eschewing V-8 for 4G Threatens Auto Demand.  Key quote:

"The rate of U.S. auto sales to 18-to-34-year-old buyers declined to 11 percent in April 2012, down from 17 percent for the same age group in April 2007, before the recession, according to Southfield, Michigan-based R.L. Polk & Co."

Time's Will Millennials Change How Cars Are Bought and Sold.  Key quote:

"Gen Y doesn’t seem to care much for cars. Based on sales and survey data, it’s clear that young Americans are far more interested in iPhones than cars."

USA Today's Toyota's chief's big fear: Gen Y "lukewarm" about cars.  Key quote:

"They also are environmentally conscious and embrace bikes and public transportation."

The quick summary of these article is Gen Y doesn't view cars as a necessity like prior generations. Also, Gen Y doesn't link auto ownership with freedom to the same degree as prior generations.

These are big shifts and will have a major impact on transportation and related industries. 

Gen Y Delaying Adulthood

Those old enough to remember Alice Cooper will also remember his song Eighteen.  Released in 1970, it's about the confusing yet hopeful period of life when you realize you're becoming an adult.  

If Alice wrote the song today, he would likely title it Twenty-Eight, or at least that's what the results of Clarke University's poll of emerging adults indicates.

The chart on the right, from a USA Today article on the study, shows that less than half of emerging adults (ages 18-29) consider themselves to be adults.  

The key quote from the story shows today's emerging adults are facing the same issues and mixed feelings Alice described in 1970:

More than half (56%) say they often feel anxious; 33% often feel depressed; 65% say "this time of my life is full of uncertainty." Yet 82% say "it still seems like anything is possible."

Emerging adults are extending their childhood and delaying traditional markers of adulthood such as marriage, children and careers until their late 20's or early 30's.  

And while the Great Recession has accelerated this shift, it didn't cause it.

Delayed adulthood is a trend that has been building for several decades and gained a lot of attention when Gen X (born 1965-1980) entered adulthood. 

Most observers of this trend, including the Clarke University professor who led this study and coined the term "emerging adulthood", expect it to continue.