Work in progress: millennial anxiety reaches across generations

Jessica Barrett / Calgary Herald

When I first conceived of my year-long project on the working world for the Calgary Herald’s Michelle Lang Fellowship, I have to admit, most of my proposal was based on a hunch. Through straw polls, coffee banter with friends and colleagues, discussions with my own parents and, of course, my own experience in the job market, I was fairly certain I wasn’t the only one gazing at an uncertain economic future with some apprehension.

To back up my pitch, I assembled a smattering of news stories pointing out the dismal projections for younger workers, growing income inequality, boomers delaying retirement and the like.

But when it came to my thesis – namely that the working world is changing and we’re not feeling all that great about it – there was very little evidence out there to prove that I wasn’t just butting up against the walls of my own little bubble.

Turns out the folks at the Broadbent Institute, an Ottawa-based think tank, felt the same. In response to the same dinnertime conversation I was picking up on, they decided to commission a poll to determine just how widespread concern over job prospects and economic futures for younger workers is.

The results, published today, show anxiety over the changing face of work, and all the social challenges it implies, runs deep across the generations.

The poll surveyed 1,064 boomers aged 50-65 and 983 millennials aged 20-30 about their experiences in the work force and sheds some much-needed light on how Canadians are feeling about the economy. The figures were weighted to reflect census data on population age, gender, education and region.

So, what do the numbers say? Many boomers and millennials are anxious about the younger generation’s job prospects, homeownership potential and ability to fund social programs through taxes.

Interestingly, boomer parents seem to be more pessimistic about their children’s future than millennials are about their own prospects. Nearly half of boomers, 49 per cent, feel their kids are facing a poorer future than they had, while 34 per cent of millennials feel they are worse off than their parents.

But at the same time, millennials know they are facing a working life with fewer guarantees. More than half anticipated a career where contract work played a role, compared to 14 per cent of boomers who said they faced the same instability in their own careers. Meanwhile, only a third of millennials were confident they’d own their homes at retirement, compared to more than half of boomers, and one in five millennials say they don’t know anyone with an employer-funded pension.

Rick Smith, executive director of the Broadbent Institute, said he wasn’t surprised to find a high level of angst across age cohorts, but he didn’t anticipate seeing so much agreement between the generations on possible causes of economic instability. A significant majority of both generations expressed a high level of distrust for corporations, he noted, with both blaming irresponsible corporate behaviour for bringing on the 2008 financial crisis.

“Our starting point was very similar to yours: is this our imagination or not?” Smith said in an interview Monday.

“If you were to rank likely topics of dinner-time conversation in Canada these days, youth unemployment is high on that list. These numbers bear out that anecdotal experience.”

Smith said the results of the poll will be used to inform policy recommendations coming out of a summit the institute is holding later this month in Ottawa.

Here are some other highlights from the survey (which you can read here). I’m interested to know if you agree, send me an email or leave a comment below and let me know how you’re feeling about your work prospects.

  • Just over half, 52 per cent, of millennials expect contract work to make up a significant part of their working lives, either alone or in conjunction with permanent jobs. In contrast, 14 per cent of boomers said their work lives relied on contract work;
  • 39 per cent of millennials anticipate a career comprised of permanent jobs, compared to 66 per cent of boomers who experienced permanent employment;
  • Millennials with university degrees were more likely to anticipate a career encompassing contract work than those with high school or college education;
  • 70 per cent of millennials and 78 per cent of boomers cite irresponsible business behaviour as the cause of the 2008 recession;
  • 60 per cent of millennials anticipate the gap between rich and poor to grow during their lifetime;
  • 55 per cent of millennials and 59 per cent of boomers say declining enrolment in unions has made good jobs harder to find;
  • 48 per cent of millennials and 60 per cent of boomers say reduced corporate tax rates have not resulted in more investment in creating jobs in Canada.

The poll does not provide a margin of error because it is not a random, probability-based sample.

 

Parents, youth agree: the economic road ahead is rocky

Survey highlights millennials’ fears and boomers’ worries about precarious work

OTTAWA—In an innovative survey of both millennials and boomer parents, a poll asked two generations their thoughts about their economic future and the policies affecting it. Both young people in the workforce and their parents expressed deep unease about a future of precarious, low-benefit work. 

The poll, conducted by Abacus Data for the Broadbent Institute, shows only a minority in both groups believe the economic opportunities of young people will be better than the boomer generation. And a majority of millennials and boomers don’t trust corporations to create good jobs in Canada, even as governments enact policies businesses want.

“Without a change in direction, Canada won’t see one generation leaving things better for the next,” said Rick Smith, Executive Director of the Broadbent Institute. “Young people think income inequality will grow in their lifetime, while their parents worry about how the social programs they’ll need in retirement will be paid for.”

The poll’s key findings:

  • There are four times as many millennials who think they will face contract work than what baby boomers report they faced in their life.
  • Boomers are more likely to think their children will slip in economic class than are millennials when asked about their future economic status; and about half (49%) of boomers believe economic opportunities are worse for their children than when they were their children's age.
  • Only a small minority of millennials (21%) and boomers (15%) believe corporations will work harder to make sure good jobs are created in Canada; large majorities in both groups believe corporations will concentrate more on their profits, even if good jobs aren’t created.
  • Millennials are three times as likely to think income inequality will grow than narrow in their lifetime. 
  • A majority of boomers fear their children’s generation won’t be able to pay for social programs they will need in retirement.

"These findings show people are skeptical that corporations will create good jobs in Canada. They believe most people will be worse off if the government continues to withdraw and turns to individuals to make up the difference,” said Smith. “The survey is a wake-up call about the need for a new deal for today’s youth.”

The Abacus Data survey surveyed 983 Canadians aged 20-30 in the job market — millennials — and 1,064 people aged 50-65 — baby boomers — with at least one child aged 20 or older. The online survey was completed from February 6-10, 2014.

The full report is available at broadbentinstitute.ca/en/newdeal.

From March 28-30 in Ottawa, the Broadbent Institute will hold its first annual Progress Summit  a high-profile event that will bring together an exciting group of policy experts from across Canada and around the world. The issue of youth unemployment will be top of the agenda for this event. Learn more at www.broadbentinstitute.ca/en/summit.

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For more information, please contact:

Mike Fancie, Broadbent Institute
613-866-3606 or mfancie [at ] broadbentinstitute [dot] ca

Younger Canadians feel angst about their financial prospects

Don Curren / Wall Street Journal

Canadians in the millennial and boomer generations disagree about much, but hold one thing in common: they’re deeply anxious about the economic future of young Canadians.

That was the key finding of a survey of Canadians between 20 and 30–the “millennial” generation–who are in the work force, and boomers, or those aged between 50 and 65, by the left-leaning Broadbent Institute.

“It puts [some numbers], for the first time, to the fact there’s deep angst, among both millennials and their parents, about the reduced economic opportunities available to young people, today,”Rick Smith, executive direction of the institute, told Canada Real Time.

“The scale of the angst certainly took us by surprise,” he said. “The strength of feeling here is really quite astonishing.”

The online survey, conducted last month, found that 41% of the millennials expect their working lives to comprise a mix of contract work and permanent jobs, with 39% anticipating a succession of permanent jobs.

That contrasts markedly with the experience of the boomers, 66% of whom reported working lives consisting of a string of permanent jobs and only 10% of whom experienced the combination of contracts and permanent positions expected by the millennials. 

A near majority of 49% of the boomers said things are worse for their children today, while 40% believe their kids’ economic opportunities are better than theirs were when they were the same age. More millennials—56%–said they expected their opportunities to be the same as or worse than their parents’.

On the housing front, more than half of boomers are certain they’ll own their home at retirement, but only a third of millennials are as confident.

Mr. Smith said the relative pessimism about the prospects of working Canadians, both among millennials and boomers, reflects their “lived experiences” in the last few years.

The survey found that 92% of boomers know someone with a workplace pension, with 51% of them knowing some or many. That compares with only 30% of millennials who know at least some people who have a workplace pension, and 20% knowing no one with such a benefit.

A big majority of both millennials and boomers agreed free-trade agreements have made Canadian businesses more profitable by making it cheaper to make things in other countries. But a majority of these same respondents also said trade agreements have cost Canadians jobs and opportunities.

Overall, the survey pointed to concern about the prospects of younger Canadians now, but also into the future, Mr. Smith said.

“This concern is not only for economic prospects of youth currently, it’s also a realization of economic prospects for youth in the future are likely to be dimmed,” he said.

“People don’t view this as a blip. They’re not anticipating that things are going to bounce back, any time soon,” Mr. Smith said.

Millennials, boomers fret about tough economic future

Joe Friesen / Globe & Mail

The perception of a growing generational divide seems to be taking hold among millennials and their baby boomer parents, as both groups now tend to believe that the economic future looks bleak for the younger generation, a new survey shows.

The survey, which was commissioned by the Broadbent Institute, found that millennials fear their working lives will be governed by precarious, short-term arrangements and that the gulf between rich and poor will grow. Their parents, meanwhile, worry that the younger generation will not produce enough income to support the social programs they’re counting on in old age.

“Parents across this country are fretting about the economic prospects of their kids. They’re worried their kids aren’t going to have the same economic opportunities as they did,” said Rick Smith, executive director of the Broadbent Institute, a left-wing think tank. “What really leaps out at me here is there’s a very high degree of angst.”

A feeling of anxiety about the economic prospects of a younger generation is not uncommon historically. What’s not clear is whether today’s fears are justified. Youth unemployment is at 13.6 per cent, unchanged over the last year and down from the peak of a recession that continues to send ripples through the global economy. This is also a period of significant technological change and it’s unclear what impact that will have over the long term. What’s clear is that a sense of pessimism, justified or not, is gaining momentum.

Baby boomers are more likely to say that their children face worse economic times than they did as young people. Just less than 50 per cent of the boomers surveyed said their children’s economic opportunities are worse than their own at that age, compared with 40 per cent that said they were better and 12 per cent that said they were the same, according to the online survey by Abacus. More than 55 per cent of boomers said they worried the younger generation won’t support social programs through taxes.

Millennials are expecting a different kind of working world from the one their parents entered. They expect to work a mixture of permanent and temporary jobs, compared with the more stable arrangements their parents had. They say lower rates of unionization will make good jobs harder to find and are more likely to say they don’t know anyone with an employer-provided pension, the survey said. Sixty per cent say the gap between rich and poor will increase over their lifetime, and only 16 per cent believe it will shrink.

Frances Woolley, an economist at Carleton University, said there’s no question today’s labour market is more unequal. This is a “winner take all” society, as some call it, where the greatest income gains go to those at the top of the spectrum and some, particularly those without a university education, will face a difficult job market. But one thing to consider is that the baby boomers had the good fortune to be born at the right time, an era of peace and prosperity, Prof. Woolley said.

“The older generation has had such a blessed life,” Prof. Woolley said. “Some generations are born in better times than others. That’s just the way it is.”

Matthew Cuthbert is a 27-year-old graduate of the University of Toronto. He has experienced the millennial’s anxiety. He has nearly $50,000 in student and credit-card debt and works at a community centre in customer service, earning $31,000 a year. He and many of his friends are the precariat, he said, a new class of precarious worker. It’s not what he was expecting, but after seven months unemployed, he’s grateful for the work.

“It’s frustrating to watch this break down. When I started school there was so much more optimism around the economy,” he said. “It’s far from the ideal situation that any of us anticipated.“