Gen Zers had no desire to work in finance before the economy started tanking. But they’ve since changed their minds for stability and higher pay
Gen Z is just getting started with work. Now between ages 18 and 26, its members have grown up tech-savvy and scarred by events like the Great Recession in 2008 and the COVID-19 pandemic that have shaped how they think about work. Many of them have rejected taking jobs in traditional industries in which their parents worked in favor of more flexible, less linear career paths.
But that may now be shifting. While many Gen Zers are willing to job hop to earn more and explore new paths, some still crave stability from work, especially as they step into a post-pandemic world. That has propelled finance to the most desired industry to work in, according to a recent survey by the CFA Institute, the professional organization that offers certifies financial analysts.
The new willingness to join the finance industry is a stark shift from 2021, the peak pandemic year, when the same age group—which consisted mostly of Gen Z but also a few millennials—ranked careers in education and health as their top preferences. Finance was ranked fifth in the CFA Institute’s survey two years ago, while STEM jobs, which includes tech, was ranked ninth.
The biggest reason for the change in professional aspirations? Anxiety about pay. The report, which surveyed nearly 10,000 people between 18 and 25 years from 13 countries, revealed that 62% of the respondents cited “good salary” as the most important criteria when it came to employment, while in 2021, only 45% said high salary was a priority.
“The most popular careers among young people are those with high-income potential. … They see that as the best way to achieve personal fulfillment and happiness,” Matin Mirramezani, chief operating officer of data intelligence company Generation Lab, told Axios in January. “They don’t see their career path as an end in itself, but rather the means to an end.”
It’s no wonder that Gen Z is drawn to Wall Street. During a time characterized by record inflation and massive student loan debt, young graduates want stability and financial security. Not having enough money is a major cause of concern for this generation, as Cigna 360’s Global Well-Being Survey 2022 links high levels of burnout to anxiety about money. Thirty-nine percent of Gen Zers surveyed, Cigna found, listed money as their top source of stress. Top fields for this generation in CFA Institute’s 2021 survey, such as healthcare and teaching, haven’t raised salaries as much as younger workers would like, leading to hiring and retention crises in both fields.
In joining the finance industry, Gen Z can earn a more competitive salary, though it sometimes means a tradeoff that includes a lack of flexibility in terms of schedule and location that many in their generation are also attracted to, along with stress and long hours in the office. While finance at large is cutting costs, slashing some bonuses and laying off workers, the field can still be attractive. For example, many big financial firms have boosted intern compensation, such as hedge fund Citadel, which pays $120 hourly, according to Bloomberg. Finance is, of course, an infamously stressful field that often requires long hours in the office.
In addition to pay, Gen Z’s warming up to finance also gives them more security. The tech and media industries, in contrast, have been laying off workers in big numbers since 2022. Nearly half of Gen Zers surveyed by the CFA Institute said that COVID-19 had impacted their career prospects, and the mass layoffs and job market volatility that followed forced 56% of graduates to consider prolonging their studies. Research from candidate-recruiting platform Handshake found that 85% of the Gen Zers who graduated in 2023 prioritized stability while 80% prioritized pay over all other factors when applying for jobs.
Despite the many challenges faced by Gen Z, its members generally feel optimistic about their careers. Fifty-six percent of graduates thought their prospects are shaping up now to be better than their parents’ generation, compared to 48% who felt that way in 2021, the CFA Institute survey found.