Why Accepting Gen Z's Economy Is Key, Not Fearing It

Zoomers — the generation born roughly from the mid-1990s to the early 2010s — are a demographic and economic force capable of influencing labor markets, consumption, and social policy. And also capable of irritating State Duma deputies greatly.

In Russia, the number of zoomers is about 15 million, or 10% of the population. For comparison: in Germany, the proportion of zoomers reaches 15%, in the UK — about 18%, and in the US, it«s about 20% altogether.

Zoomers are also characterized by the category NEET — youth not in education, employment, or training. In Russia, they make up about 17.8% of all zoomers, which is higher than the average in the European Union (11.7%) and the US (12.4%). At the other extreme — countries in the Middle East and North Africa, where the share of NEET reaches 30–36%.

In Russia, deputies are seriously discussing a possible «economic collapse» precisely due to zoomers of the NEET category. The main argument is simple. Youth«s refusal to study and work is not yet noticeable for the economy. Digital overload and uncertainty about the future — these are just excuses of young people. The Russian economy may face a crisis due to youth. They do not want to work and strive, and parents do not teach them independence, believes Deputy Chairman of the State Duma Committee on Youth Policy Alexander Tolmachev.

The people«s representative probably is not aware that many zoomers already earn above average or have access to parental capital, but are formally classified as NEET. Details — in the material by MSK1.RU.

Serious Challenges

— This zoomer approach to work — it«s not just a protest against the system, but a reflection of deep socio-economic changes. It arose in response to the crisis of the »social contract,« when promises of stability and success did not materialize for many generations, — says MSK1.RU Candidate of Economic Sciences Said Gafurov, member of the Central Council of the independent trade union »Novy Trud« (New Labor).

— And didn«t it start with banal remote work, which, in turn, appeared during the pandemic?

— That«s too simplistic. The emergence of remote work only provided the opportunity to choose alternative forms of employment. The zoomer approach was also influenced by a shift in values with an emphasis on mental health, work-life balance, ecology, and self-realization. In conditions of instability, long-term planning has become difficult, which has strengthened the desire to live »here and now.«

— But do you agree with Deputy Tolmachev that due to zoomers, sooner or later, fatal problems for the economy are possible?

— Serious challenges for the economy are inevitable in the absence of adaptation. If we take the generational dimension, the aging of millennials will lead to a shortage of middle and senior managers.

The transition from a solidarity to an accumulation model may cause social tension due to the increase in the retirement age. Frequent job changes reduce the level of specialization and accumulated knowledge, which will slow down the development of key industries. Employers lose interest in training employees, which reduces the qualifications of the workforce and may lead to the relocation of production. Consumer demand also becomes unstable: people without stable incomes and savings become unreliable borrowers.

— But to put it very simply: it turns out that when not only zoomers but younger generations grow up, in Russia, social priorities and values will simply change?

— Yes, social priorities will shift from material indicators of success towards quality of life, self-expression, and social contribution. And this transition will be painful for inertial institutions: the state, pension funds, large corporations of the old type, the banking system. They will be forced to change under the new worker and consumer.

— Apparently, in the State Duma, it is precisely changes, as usual, that they fear. But maybe it«s right if they will be extremely painful.

— Here the main question is: will states (not only Russia) and global institutions be able to conduct a smooth reform of social systems — pensions, healthcare, taxation — before demographic pressure and the change in work ethic, like an avalanche, crash down on society, causing a crisis. This depends on whether humanity will manage to make a transition, similar to the smooth flow of a river, or whether society will face painful shocks, like strong tsunami waves that will destroy the lives of many generations.

Risk of Disappointment

Not sharing the pessimism of Deputy Tolmachev is leading expert of the Center for Political Technologies, economist Nikita Maslennikov. He believes that alarming forecasts are not yet confirmed by reality.

According to the expert, more than two-thirds of 9th grade graduates are already focused on entering colleges. This indicates that young people consciously choose the path of obtaining a specific working specialty.

However, as Maslennikov notes, the education system faces many problems that have not yet been solved. «Young people may not find enough application for their strengths, talents, skills, and, in fact, they are not even formed for many within this professionalism,» — emphasizes the expert. This means that current programs may not keep up with the requirements of the changing labor market, and the schoolchildren themselves are not yet ready for a conscious choice of future profession.

Against this background, there is a real risk of disappointment and lack of demand for the profession that a zoomer will receive. The zoomer economy may face serious challenges if educational programs do not meet the demands of employers. In Maslennikov«s opinion, earlier professional adaptation and broader familiarization of schoolchildren with possible types of application of their strengths are required here.

Maslennikov says that everyone should work on adapting zoomers to future working life. Family — to guide children. State — to build systemic policy and create legislative frameworks. Employers, that is, business, — to attract college students to production practices, including through financial supplements.

Maslennikov insists that adapting the new generation to the labor market is a comprehensive task, not reduced only to education or salary. It is necessary to create such a favorable socio-psychological environment where young specialists would feel in demand and supported. And this is not only high salaries but also a guarantee of future career, social package. And, of course, the prestige of the chosen profession.

It turns out that political reactions in the State Duma look spectacular but simplify the complex picture. Real challenges require adaptation of institutions, the labor market, and social protection so that «Generation Z» becomes not a threat but a catalyst for change in Russia.