Despite being more educated and digitally skilled, Gen Zs earn the same as millennials did in 2005, while paying triple for essentials.
The lack of economic growth in the country has been blamed for today’s young people – those from Gen Z, or born between 1997 and 2012 – not being able to move forward in their lives.
The South Africa Union of Students (SAUS) has called on government and the private sector to take action to address the plight of young people trapped in economic hardship due to unemployment and a lack of opportunities.
SAUS is an umbrella organisation representing students and young graduates nationally. It has blamed the lack of economic growth for the young generation not being able to get on with their lives.
Intergenerational inequality
A study, released recently by TEFL Academy, found the Gen Zs have to postpone their independence due to lack of jobs.
The research paints a stark picture of the intergenerational inequality in SA.
The study found that this is not just an economic issue, but also a social one, noting that many Gen Zs remain dependent on family support into their late 20s.
It found they are delaying home ownership and families and are increasingly reliant on credit.
Despite being more educated and digitally skilled than millennials were in 2005, today’s young adults feel less financially secure and have fewer opportunities to build wealth.
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Gen Z’s struggle to keep up
The study shows that financial pressures on young South Africans have intensified dramatically between millennials in 2005 and Gen Z in 2025.
It says Gen Zs struggle to keep up with rising expenses, 20 years after millennials.
Despite being more educated and digitally skilled, Gen Zs earn the same as millennials did in 2005, while paying triple for essentials.
SAUS spokesperson Thato Masekoa said it was deeply concerned by the findings that show “how a generation is being pushed further into economic hardship and dependence”.
“The reality is that young people are being failed by an economy that rewards qualifications with unemployment, underpayment and unaffordable living conditions.
It is unacceptable that graduates who are more skilled and educated than ever before are earning the same as young professionals did 20 years ago, yet pay triple for food, housing and transport.
“This is not simply a financial issue, it is social justice issue. The right to work, live independently and to build a future should not be reserved for a privileged few,” Masekoa said.
She called on the government and private sector to take urgent action to address graduate exploitation and regulate entry-level pay.
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