Do you think we should expect to see consistency in average
job tenure among the younger generations for the foreseeable future or not and
why?
Friday, October 27, 2017
Workers are not switching jobs more often
The common conception of ‘Millennial job
hopping” has evolved into a misconception as of late. Anyone born after 1982 is
considered a millennial, and they are more likely to switch jobs than older
colleagues. In America at least, the trend in job tenures has not changed in
years. The Bureau of Labor Statistics gathered data showing workers 25 years
and older now spend a median of 5.1 years with employers, just slightly more
than those of 1983 (between 4-6 years). The only drastic change in job tenure length
of the years pertains to middle aged men, ages 45-54. Job tenure average has
dropped from 12.8 years in 1983 to 8.4 years in 2016. This drop is due to a
collapse of semi-skilled jobs and a decline of labor unions. However, the
decline has been offset slightly because women have been staying longer in their
jobs and retirement ages have increased, hardly changing the overall numbers.
Some millennials are in fact switching jobs more often, these millennials are
in Europe. Research from the OECD shows that France, Germany, Italy, and Spain
each have increased overall job tenure, but the younger workers (millennials)
have shown a decrease in tenure length. Labor-market restrictions in Europe
have nudged younger workers to take on “temporary gigs” and fixed term contracts.
With new industries, the startup scene where apps are created and sold every
six months only to start the next, one would think that the job tenure length
would be shifting toward a decreasing average.
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What's interesting is that the trends for millennials in some European countries are different, according to this article. In European countries such as France and Spain, even millennials 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 simply because these countries have gone through difficult economic times that required cuts in social welfare costs. There are fewer “permanent” jobs for young people as a result.
ReplyDeleteIn contrast, The Economist article finds that today, English people in their 20s are less likely than previous generations to leave jobs of their own choosing and are staying in jobs longer. This makes me wonder if many of the millennials in France and Spain who currently can only find temporary jobs will make different choices —to put more emphasis on work over leisure—as they get older and if their economies improve.
I expect the average job tenure among the generations younger than us to decrease. Todays generation has become increasingly lazy compared to generations in the past. I personally think the younger people will try to ride off their parents banks accounts as long as possible instead of making a consistent living for themselves.
ReplyDeleteWhile I'm not entirely sure on my outlook of average job tenure, I think this article raises some other interesting questions. Given that this misconception has since been brought to light, it makes me wonder what other economic misconceptions about millennials the public has.
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ReplyDeleteI think the average job tenure for millennials will decrease a little bit and then remain constant after that. With the new technologies and opportunities for part time jobs like uber I think the average tenure will decrease because the opportunity cost of switching jobs becomes less. I also think millennials are more indecisive and are bigger believers in "the grass is greener on the other side".
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