Gen Z Earns More Than Millennials at the Same Age — Why Don’t They Feel Financially Secure?

According to a 2026 study by Zety, Gen Z workers in their early-to-mid twenties earn 12.3% more than Millennials did at the same age — after adjusting for inflation. Contrary to the prevailing narrative, these Gen Z workers actually have a lower unemployment rate (7.5%) than Millennials did (8.9%), too.

The catch? Those numbers reflect Gen Z workers employed full-time (or looking). Yet the average labor force participation rate is just 71.1% of Gen Z adults in that age group, compared to roughly 75% of Millennials. Less than two-thirds (65.8%) of Gen Z twenty-somethings have a job at all.

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So, if this generation is better off than the last one was at the same age, why does it feel so precarious? The answer has less to do with what they earn and more to do with what their money has to cover.

Higher Paychecks Don’t Cover the Costs

Gen Z adults in their twenties face steep challenges that inflation alone doesn’t capture. Debt is the first problem National Debt Relief reports that 60% of Gen Z adults carry unsecured debt and 77% carry debt in general.

Instant credit card approvals and buy-now-pay-later platforms have made it easier than ever to rack up consumer debt. Seven in ten Gen Z adults with debt say convenience purchases have contributed to what they owe.

The rise of prediction markets and sports betting apps haven’t helped either. Two-thirds (65%) of Gen Z adults who regularly gamble say they’ve done it to pay off debt. That’s less a strategy than a trapdoor.

Then there’s housing, the biggest weight of all. According to Visual Capitalist, median home prices now run five times median income, up from three and a half times in the 1980s. Interest rates have also climbed sharply over the last four years. The result is that the average first-time homebuyer is now 40, according to the NAR, up from 29 in the 1980s.

Job Insecurity Makes Good Salaries Feel Temporary

The oldest Gen Z workers came of age during the COVID-19 pandemic, and little since then has suggested the working world is stable.

“The last six years have seen massive technology change, persistent economic uncertainty, rounds of massive layoffs and existential questions about what artificial intelligence (AI) means for young workers’ careers,” explained executive coach, Sarah Noll Wilson.

“Workers earning a decent paycheck compared to their predecessors still feel like the ground beneath them is shaky.”

Social media just adds fuel. A nonstop feed of curated photos and highlight-reel milestones makes it look like everyone else is pulling ahead, even when much of it is exaggerated or staged.

Many Young People Want Balance, Not a Bigger Grind

When basic milestones like homeownership feel out of reach, it’s no surprise that many young Gen Z workers question the “Silicon Valley 996” grind culture that glorifies the 9-to-9, six-days-a-week hustle.

“More than any previous generation, Gen Z prioritizes living a full, balanced life,” noted Sam DeMase, career expert with ZipRecruiter.

That could look like committing to a side hustle that could someday become the main gig or like devoting energy to family, friends, hobbies and passions.

"For Gen Z, frustrated that their money doesn’t go as far as older generations’, slightly higher pay doesn’t equal job satisfaction," added DeMase.

What Would Actually Help Gen Z Feel Secure

First, a feeling of financial stability always helps. That starts with building an emergency fund, so that a $1,500 surprise bill doesn’t spiral your life out of control.

Likewise, reducing high-interest debt — particularly unsecured debts like credit card balances — also helps you feel more stable.

Consider unplugging from social media, too. Almost nobody can afford every lifestyle perk on their feed. Choosing travel over trendy clothes, or a down payment over restaurant dinners, is a trade-off, not a failure. Stop comparing your life to what you see online.

On the career side, get specific as you ask about the path to the career you want. “Ask for clear expectations, useful feedback, manageable workloads, advancement criteria and fair compensation,” suggested Not the HR Lady, Tara Furiani.

Not every employer will be able to provide that. Find one who will, for a career path that makes you excited to get out of bed in the morning.

Better on Paper, Stressed in Practice

Gen Z may be outearning the generations before it, but higher pay hasn’t translated into a feeling of security. Until housing, debt and job stability catch up with paychecks, the sense of falling behind will stick around. The fix isn’t just a bigger salary. It’s building enough stability that the money you earn actually feels like yours.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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