Millenials in the U.S. are often
thought of a unlikely to stay too long in any one job. There is an idea that
job loyalty and millenials do not go together.
But in European countries such as France and Spain, millenials are
staying less time in their jobs for economic reasons that may not be their
choice, according to the article. As many as more than 50% of younger workers
in these countries are taking temporary or shorter-term jobs with a fixed end
date because these countries have gone through difficult economic times in the
past several years that required cuts in social welfare costs (government
spending). This decrease in government spending affects output (GDP growth) and
raises the unemployment rate. There are fewer “permanent” jobs for young people
in these European countries as a result.
For U.S. men ages 45-54, the
average number of years in one job has also fallen—in their case, from 12.8 in
1983 to 8.4 currently, according to the U.S. Bureau of Labor Statistics. According to this week’s issue of The
Economist magazine, there are also economic reasons why middle-aged men in
the U.S. are remaining fewer years at a job and are less likely to move to
another part of the country to take new jobs currently compared with the same
age group ten or twenty years ago. This is due to large declines in available
semi-skilled jobs and less powerful labor unions, which cannot protect these
men’s jobs. Middle-aged U.S. women, however are remaining in jobs longer today
compared with in 1983 more so due to changes in their own choices. This may
also be due to the fact that more middle-aged women have college degrees today,
which also expands their choices and career decisions.
https://www.economist.com/news/finance-and-economics/21730440-millennials-it-turns-out-are-loyal-and-boring-previous
https://www.bls.gov/
I think this phenomenon could also be attributed by a shift in the social norms for millennials. If you look at the percentage of millennials renting homes/apartments compared to those of the generation before, there is a stark difference. This could be due to the mindset of millennial. Studies have shown that millennials tend to act considering the short run more than the long run (in the moment mindset) which could be the culprit of the decrease in job loyalty. This would be an interesting topic to study with behavioral economics.
ReplyDeleteI think college degrees play a large role in jobs today. If a millennial does not have a college degree they are less likely to find a permanent job, which can lead to switching jobs often. I also agree with Aaron that this could just be a millennial mindset. In the past job loyalty has been a huge thing, whereas today there are few companies that you see employees staying for long periods of time. I have experienced both types of companies first hand. My supervisor for my summer internship said she only stayed at jobs for around 5 years because she wanted to get experience in many different fields. However, my new job has employees that have stayed there for 20-30 years and will continue to work for that company until they retire.
ReplyDeleteI believe that millennials may not always choose to leave their work place, but other factors such as the baby boomers are staying longer in the work force leaving fewer jobs for the millennials. Firms that have job openings will want people who are more experienced so the millennials who don’t have experience will have a hard time finding a job. Due to fewer jobs the unemployment rate increases. Other factors like the struggling economy could lead fewer firms investing leading to less output and fewer jobs. Women are less likely to have unstable jobs than men, because they tend to be more committed to working in one place and putting in all their effort.
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