Economic Recession and Gen Z Graduates

The Gen Z cohort was born between 1997 and 2012 where Millennial ends. While the majority of Gen Z has not yet entered the labor force, we can look at those born between 1997 and 2000 to see the insight of the new generation employees.

A recession is a significant decline in economic activity, lasting more than a few months ( Kimberly Amadeo, 2020). According to the sources decline in the below 5 economic indicators can result in a recession in a country.

1. Real gross domestic product
2. Income
3. Employment
4. Manufacturing
5. Retail sales

Below is the Gross Domestic Product Growth in Sri Lanka and a drop of other 4 indicators due to COVID-19 resulting in a negative percentage of GDP will cause an Economic Recession

If the income of the citizens is at a stake, opportunities to find a job or to survive on day to day expenses are less causing high unemployment rate, close down of industrial work places due to COVID-19 and negative sales will effect immensely for the economy of a third world developing country.

Lasting recession and finding a job

According to the recent research paper by the Overseas Development Institute (ODI), Sri Lanka as a low- and middle-income country, was identified top in the vulnerability index due to the impacts of COVID-19 and a resulting Chinese economic slowdown. This will result in a significantly high risk of the unemployment rate. The current crisis will gravely affect the tourism sector. In January and February alone, tourist arrivals to Sri Lanka fell by 6.5% and 17.7% respectively, compared to 2019 ( Kithmina Hewage, 2020).

Glassdoor Economic Research published a research finding of Gen Z workers' aspiration of work. Software Engineer was the most in-demand job among the zoomers in the United States and they are aspiring to work in Tech. “Work environment”, “flexible hours” and “good pay” are the most common keywords used by Gen Z to describe the pros of working for their employers. These key findings are mostly applicable to the Sri Lankan Gen Zers as well. But the Question is the postponed internships and job replacements in this crisis situation that all the Sri Lankan Companies are going through. There is a space in research to how Gen Z are going to face the ‘finding a job’ challenge, even in Sri Lanka, and what Industry leaders planning for.

With the new normal, most of the business processes need to enhance and adopted to the situation. As an example, face-to-face interviews are now not possible with the prevailing curfew and as Sri Lankans are always great in hospitality and welcoming the new candidate to the company is a challenge now. Further, employee performance appraisals are looking forward to new policies and standards as well.

Throwing Graduation caps to Air

In response to the COVID-19 Pandemic, some universities announced that its 2020 graduation ceremony will be held virtually. While the world around us fighting for methods to continue their day-to-day activities some of the countries outsmart and graduates remotely operated robots to accept their certificates instead of them which reminded us how we enjoyed Sheldon’s Mobile Virtual Presence Device watching, The Big Bang Theory.

The tip of the Gen Z spear will commence their adult life by missing out on the pomp and circumstance of college graduation (Nate Bennett, 2020)

It is saddened to see Gen Z is facing a different set of circumstances than they expected. But they will forever remember the remarkable experiences and let the great leaders take count of the new Gen Z graduates.

Cheers!