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Washington State University
Carson College of Business Business in the Northwest 2023: Gen Z Report Narrative

Gen Z Spotlight Report

Business in the Northwest 2023

Executive Summary

In 2022, Pacific Northwest (PNW) business leaders were most concerned with inflation, supply chain, and finding and retaining their workforce, while employees prioritized a desire for higher salaries, greater work-life balance, and positive company cultures. For the third year in a row, the WSU Carson College of Business also surveyed the youngest members of our workforce—Generation Z (18-26 years old)—to get their perspective. This year, these employees are grappling with the desire to further their careers amid predictions of a looming recession following the COVID-19 pandemic. Some are demanding investment in their future from their PNW employers, while optimism around job opportunities is declining. In this spotlight report, we provide a deeper look at Gen Z employees’ priorities, perceptions, hopes, and expectations for their future of work in the PNW.

 

Key Finding 1:

Gen Z optimism around job opportunities in the PNW is declining and is at its lowest level since the height of COVID.

While the majority is still optimistic, there has been a notable drop among Gen Z employees who are optimistic about potential job opportunities in the PNW since last year. After an increase in 2022, optimism has dropped to as low as it was at the onset of COVID.

Business Leaders 202320222021 2019
Optimistic75% 76%78%73%
Pessimistic12% 5%11%4%

PNW Employees202320222021 2019
Optimistic57%63%49%59%
Pessimistic22% 11%23%12%

PNW Gen Z Employees202320222021 2019
Optimistic60%66%61%91%
Pessimistic14% 6%14%3%

Key Finding 2:

There’s an erosion of confidence in the business climate among Gen Z employees.

Nearly 8 in 10 of the youngest generation of PNW employees say the business climate in the Pacific Northwest has either plateaued or declined in the past three years. More Gen Z employees feel this way now than in pre-COVID times, when approximately 5 in 10 held the same sentiment.

Since 2019, Pacific Northwest Gen Z employees increasingly feel as though the business climate in the Pacific Northwest has either plateaued or declined in the past three years. In 2023, 78 percent held this sentiment compared to 69 percent in 2022 and 56 percent in 2019.

Looking ahead, however, 61% of Gen Z employees are optimistic of the region’s business climate in the next three years. While the majority of Gen Z employees have held this sentiment for the last three survey years, this year’s share is down 27 percentage points from 2019 (88%).

In 2023, 61 percent of Pacific Northwest Gen Z employees remain optimistic about the business climate in the Pacific Northwest over the next three years. While optimism remains solid, the overall percent has dropped 27 percentage points since 2019. Gen Z employees remain more optimistic compared to Pacific Northwest Employees overall but less confident than Pacific Northwest business leaders.

In 2023, 61 percent of Pacific Northwest Gen Z employees remain optimistic about the business climate in the Pacific Northwest over the next three years. While optimism remains solid, the overall percent has dropped 27 percentage points since 2019. Gen Z employees remain more optimistic compared to Pacific Northwest Employees overall but less confident than Pacific Northwest business leaders.

In 2023, 61 percent of Pacific Northwest Gen Z employees remain optimistic about the business climate in the Pacific Northwest over the next three years. While optimism remains solid, the overall percent has dropped 27 percentage points since 2019. Gen Z employees remain more optimistic compared to Pacific Northwest Employees overall but less confident than Pacific Northwest business leaders.

In 2023, 61 percent of Pacific Northwest Gen Z employees remain optimistic about the business climate in the Pacific Northwest over the next three years. While optimism remains solid, the overall percent has dropped 27 percentage points since 2019. Gen Z employees remain more optimistic compared to Pacific Northwest Employees overall but less confident than Pacific Northwest business leaders.

Key Finding 3:

While money is important, it isn’t everything; Gen Z employees have diverse motivations for getting a second job or starting a side hustle.

Nearly 80% of Gen Z employees have or plan to find a “side gig” to supplement their income (81%), prepare them for future career moves (73%), and find a sense of purpose (73%).

Other notable motivations for finding a side hustle include:

  • I am hoping to grow it into a full-time business (56%)
  • I am doing something that helps my community (58%)
  • To meet new people (58%)
  • I do it to avoid being bored (62%)

*Gen Z values differ slightly due to overlapping categories that lead to duplicate counts

Key Finding 4:

Gen Z employees are increasingly concerned about labor shortages and employee turnover, especially how those issues may hinder success—for themselves and the companies they work for.

Inflation/recession is cited as the largest barrier to future business success across all audiences. Gen Z employees, in particular, saw a significant increase year-over-year in those who cited labor shortages (2023: 34%; 2022: 23%) and employee attrition/turnover (2023: 26%; 2022: 17%) as the biggest barriers to future success, though less so than pre-COVID.

Which of the following do you feel are the biggest barriers to success for your company in the next three years?
PNW Business LeadersPNW EmployeePNW Gen Z Employee
Inflation/recession (42%)Inflation/recession (41%)Inflation/recession (39%)
Supply chain issues (26%)

(25% 2022^)
Inability to fill open positions (34%)

(30% 2022^; 22% 2021^; 31% 2019; 29% 2018)
Labor shortages (34%)

(23% 2022^)
Labor shortages (24%)

(19% 2022^)
Employee attrition/turnover (31%)

(29% 2022^; 29% 2021^; 42% 2019; 41% 2018)
Employee attrition/turnover (26%)

(17% 2022^; 21% 2021^; 27% 2019)
Employee attrition/turnover (22%)

(19% 2022^; 19% 2021^; 29% 2019; 32% 2018; 22% 2017)		Labor shortages (31%)

(27% 2022)
Inability to fill open positions (22%)

(29% 2022^; 19% 2021^; 30% 2019)
Cost of maintaining the business (20%)

(19% 2022^; 28% 2021^; 32% 2019; 33% 2018; 24% 2017)
Supply chain issues (23%)

(23% 2022^)
Supply chain issues (22%)

(23% 2022^)

^In 2021 and 2022, the question asked about the “next year” instead of the “next three years.”