2022 - Employment - Generation Z in The Philippine Labor Force Profile Perspectives and Prospects
2022 - Employment - Generation Z in The Philippine Labor Force Profile Perspectives and Prospects
PAPERS 2022
GENERATION Z IN THE
PHILIPPINE LABOR
FORCE:
PROFILE,
PERSPECTIVES,
AND PROSPECTS
ISSN ____-____
Bridging Research, Policy and Practice
www.ils.dole.gov.ph
ABSTRACT
This study provides an overview of the Gen Z labor force in the Philippines, focusing
on their sociodemographic profile, perspectives on work, and career prospects. The
study identifies the challenges faced by the Gen Z labor force, including the difficulty
of finding decent employment and the appeal of the emerging digital platform economy
and freelance work. The study also discusses the skills gap and job-skills mismatch
as significant concerns for Gen Zs, which highlights the need for education and training
opportunities. The study concludes with policy recommendations for the Philippine
government and stakeholders to harness the potentials of the Gen Z labor force and
safeguard their welfare, considering region-specific perspectives validated by tripartite
partners.
INTRODUCTION ........................................................................................................ 1
REVIEW OF RELATED LITERATURE...................................................................... 3
OBJECTIVES ............................................................................................................ 6
METHODOLOGY ....................................................................................................... 6
RESULTS AND DISCUSSION .................................................................................. 8
CONCLUSION AND POLICY IMPLICATIONS ......................................................... 4
RECOMMENDATIONS AND POLICY OPPORTUNITIES......................................... 6
REFERENCES ........................................................................................................... 8
ANNEX..................................................................................................................... 12
INTRODUCTION
Generational lens
The generational theory posits that the era in which a person was born affects the
development of their worldview and that a generation is a social location that
influences an individual’s consciousness in the same way as culture or social class
does (Codrington, 2011). Francis & Hoefel (2018) emphasizes that generations are
shaped by the context and circumstances in which they emerged. The generational
theory provides an opportunity to analyze the changing views of cohorts over time and
understand how different formative experiences shape perspectives. According to
Dimock (2019), economic and social shifts, world events, and technological
advancements influence the views of a cohort at a given moment.
American fact tank Pew Research Center defines Generation Z1 (or Gen Z thereafter)
as individuals born between 1997 and 2012 who are at the stage of completing their
higher education and entering the workforce (Dimock, 2019). Gen Z is the
demographic group after Millennials and is within the 10-25 years old (y.o.) age range
in 2022, which also captures the age range used by the Philippine Statistics Authority
(PSA) in the Labor Force Survey (LFS) youth statistics indicators2 (Figure 1).
10-25
26-41
42-57
58-76
77-94
Gen Zs' employment profile and prospects should be captured to enable the cohort to
utilize their potential and increase employability toward a more active labor market
participation. ILO (2017) highlighted that analyzing youth-focused labor market
information will help feed the policy-making process and serve as a basis for the urgent
challenges of addressing youth unemployment. Gen Zs' characteristics, perspectives,
and labor market outcomes are significantly influenced by the COVID-19 disruption
1 This study adopts the most cited years (1997-2012) to define the Generation Z.
2 PSA’s youth indicators refer to ages 15-24.
(Kabajwara, n.d.), which requires investigation to provide deeper insights into youth
scenarios and outlooks.
Youth situationer
In all economies, the youth is a key asset. However, labor markets continue to face
considerable challenges in ensuring that young people are integrated into the world of
work. Generating productive and decent jobs for the youth proves to be daunting for
many countries due to declining job opportunities for low-skilled youth, fiscal
pressures, and economic shocks (Organization for Economic Cooperation and
Development [OECD] & ILO, 2014). O’Higgins (2017) states that young workers are
less employable than their adult counterparts due to their lower qualifications and
shorter work experience. Youths are also more likely to quit or be fired in a recession
since it is generally more costly to terminate older workers.
In the Philippines and throughout Southeast Asia and the Pacific region, youth
unemployment has been a persistent and significant problem (Canlas & Pardalis,
2009). Table 1 shows the global, regional, and national youth unemployment trends
from 2016 to 2022.
Table 1. Youth Unemployment Rate, World, Southeast Asia and the Pacific,
Philippines, 2016-2022
2016 2017 2018 2019 2020 2021 2022
World 13.8 13.7 13.5 13.5 15.2 15.6 14.9
Southeast Asia and the
9.8 9.6 9.7 9.0 10.1 11.2 11.0
Pacific
Philippines 14.1 14.4 13.4 13.6 21.5 15.7 9.5 a
Source: ILO Global Employment Trends for Youth, 2022 & LFS Annual Estimates, PSA
a Preliminary Estimates, December 2022 LFS
Globally, the youth unemployment rate was more than three times the adult rate in
2021, with around 75 million unemployed youth out of the 732 million in the labor force.
In the Philippines, youth unemployment remained higher than the regional average
but reflected a significant improvement in youth employment creation prior to the
pandemic. The COVID-19 crisis not only wiped out the progress of providing Gen Zs
labor market opportunities but also significantly disrupted the cohort’s quality of
employment prospects, income, education, and training (ILO, 2022a). As cited by
Leondhart (2020), the Economic Policy Institute found that Gen Zs were most likely to
be unemployed or underemployed due to the pandemic and were working in industries
that have been hard hit by the crisis.
Many gains in decent work made before the pandemic have been jeopardized, with
prospects of a sustainable recovery dampening in many regions. Uncertainty
surrounding labor market prospects for the youth is significant as the crisis made
achieving many Sustainable Development Goal3 (SDG) targets more elusive (ILO,
2022b).
3 SDGs related to youth employment – SDG 4.4, 8.5, 8.6, and 8.b.
ILO estimates also show that young people remain disadvantaged in the labor market
with a high incidence of working poverty. Nearly one in four young people were not in
employment, education, and training (NEET) status in 2020, its highest in 15 years,
confirming that the pandemic hurt those aged between 15-24 years old (y.o.). in the
labor market more than any other age group (Gardiner & Goedhuys, 2020).
Labor market information focused on the
youth would contribute to developing “The COVID-19 crisis has
employment policies that would help them revealed a number of
benefit them in the changing world of work. shortcomings in the way the
If the perspectives and prospects of the
youth in the world of work are not needs of young people are
considered, policies aiming to ensure their addressed, especially the
human capital investment and favorable more vulnerable such as first-
labor market outcomes may cause a
mismatch in supporting the youth in their time jobseekers, school
ambitions and aspirations. Habito (2009) dropouts, fresh graduates,
adds that for employment reforms,
and those who remain
strategies, and policies to impact young
people’s lives in a positive and tangible inactive not by choice”.
manner, a greater understanding is
needed on their current needs, aspirations,
and demands. It is in this context that the
study aims to provide an essential basis for – Martha Newton, ILO Deputy
crafting and implementing policies and Director-General for Policy
programs that are better focused on young
workers.
In their study profiling the Filipino Gen Z, Alpay et. al (2019) claim that while much has
been written about Millennials and other older generations, minimal consensus and
understanding have been made about Gen Z.
Dubbed the generation of contradictions, they differ in many ways from the cohorts
that preceded them (Keynes, n.d.) and are deemed the most diverse and
technologically sophisticated (Singh & Dangmei, 2016). Gen Zs came of age in a world
where data is ubiquitous–making them the first “digitally native” generation through an
established presence in the technological and social web (Deloitte United States
[DUS], 2019). A report by Workforce Institute at Kronos (2019) finds that the tech-
savvy Gen Zs are entering the labor force largely optimistic about their career
prospects but, simultaneously, anxious about their success, autonomy, and flexibility.
While each generation may encounter challenges as they join the workforce, Gen Z
has entered the world of work amid recession fears, rising inflation, geopolitical
conflicts, climate change, and during a global pandemic (Dua, Ellingrud, Lazar, Luby
& Pemberton, 2022). By 2025, Gen Zs will make up 27% of OECD countries'4
workforce and one-third of the Earth's population (Staglin, 2022). The workplace
dynamic will likely begin to shift as Generation X and Millennials become
management, and as Boomers enter retirement (Personiv, n.d.). Keynes (n.d.) points
out that Gen Z’s attitude and prospects are poised to shape the next normal, and that
the typical Gen Z is entering the workforce on their own terms, demanding change not
seen in previous generations (Hoffower, 2022).
Emerging evidence suggests that younger workers want remote and flexible work
rather than fully returning to the office (Dale, 2022). The Western Governors University
[WGU] (2021) implies that Gen Zs had embraced the remote workplace long before
they were forced to since it allows technological interconnectedness, good work-life
balance, and the freedom to pursue their side hustle without the fear of burnout. The
Work Trend Index 2022 shows that 49% of Gen Z workers are likely to consider
transitioning to hybrid work, and 46% would go remote, placing a high value on the
freedom to work where they want since it fosters productivity and fewer workplace
distractions (Microsoft, 2022). Gen Zs, keen on hybrid work and finding time spent in
the office valuable, now demand such working patterns—and they are prepared to
change employers to find it (Dale, 2022).
Despite such consciousness and preferences regarding their mental health, Gen Zs
are already feeling pressured and exhausted at the earliest stages of their careers. A
2022 survey by US-based platform Asana shows that more Gen Z workers were
reporting feelings of burnout than other age groups due to the “worst collection of
stressors” that include the lack of financial stability, normalization of hustle culture, and
inability to unwind. Further, Gen Zs have the least “workplace capital,” which means
they have little power to set boundaries, manage their workload, and say no to tasks
(Yu, 2022).
Gen Zs are being defined by another standout characteristic: they are the generation
most likely to vote with their feet and quit if they are unsatisfied at work, as a 2021
study by financial services Bankrate reveals that 77% of Gen Zs were on the hunt for
a new job. With both salary and work-life balance front and center, Gen Zs have made
the previous generation's preferences their expectations—and they are willing to walk
away if their needs are unmet (Microsoft, 2022; Francis, 2022).
Business Insider's Hoffower (2022) adds that the typical Gen Z worker is leading the
way in the unprecedented job hopping in the labor market, with the era of remote work
amplifying the cohort's upper hand in demanding workplace autonomy.
A Center for American Progress issue brief discovers that Gen Z is the most pro-union
generation in America. The cohort wants a seat at the table and are hungry for change
(Nadeau, 2022). However, union participation rates of workers aged 16-24 in America
were just at 4.4% in 2020, even when 77% supported unionism (Maruf, 2021).
Hartman and Cunningham (2023) claims that such positive sentiments toward unions
in the labor force stemmed from young people’s belief that their income, career
opportunities, and economic chances would be more achievable if there were more
unions. Young people see unions in line with their interest on climate change, human
rights, and working conditions.
International firm Ernst & Young Global Limited5 [EYGL] (2021) finds that Gen Z was
relatively less confident that formal education was getting them job-ready despite their
advanced ability to use technology, supplementing Bridges’ (2015) findings that the
cohort believes their education has not equipped them with the skills needed to deal
with real-life problems and workplace dilemmas. As the pandemic loomed over their
heads, Gen Zs feel short-changed in developing the skills necessary to land a job and
thrive in a career. Specifically, the soft-skill development of Gen Zs required for the
modern workforce was affected (National Society of Leadership and Success [NSLS],
2022).
Overall, the generation faces a volatile economy that would require new skills and
mindsets, adapted for new contexts, and nurtured by educational experiences as the
future of work depends on the shoulders of Gen Zs, who would soon become the most
populous and diverse generation in history (EYGL, 2021; Staglin, 2022). As the new
generation makes its way into physical and virtual coworking spaces in the Philippines,
literature surrounding their characteristics and prospects remains sparse. There is a
need for greater discernment of Gen Zs to strengthen the youth policy agenda and
enable them to secure decent employment.
5EYGL collaborated with JA Worldwide and conducted a survey among 6,000 Gen Z aged 16-25 from
17 countries.
OBJECTIVES
This study generally aims to provide policy-relevant information about the Gen Z labor
force in the Philippines and offer feasible recommendations on how policymakers can
craft and implement public policies to harness the potentials and safeguard the welfare
of the country’s Gen Z labor force. Specifically, this research intends to (1) depict the
(a) sociodemographic profile; (b) perspectives on work; and (c) career aspirations of
the Filipino Gen Z labor force, as well as to (2) lay down pertinent policy
recommendations validated by or emanated directly from tripartite partners among the
country’s various regions.
METHODOLOGY
Operational Definitions
1. Gen Zs in the Philippines. Individuals in the Philippines who are between ages
10 and 25 years old in 2022.
2. Gen Zs in the Philippines’ labor force. The subpopulation of Gen Zs in the
Philippines aged 15-24 years old who are either employed or unemployed (i.e.,
economically active) in 2022.
3. Employed Gen Zs in the Philippines. The subpopulation of Gen Zs in the labor
force who, during the reference period, reported to be either (a) at work or (b)
with a job but not at work.
4. Self-employed Gen Zs in the Philippines. The subpopulation of Gen Zs in the
labor force working on commission basis and do not have regular working
hours.
5. Unemployed Gen Zs in the Philippines. The subpopulation of Gen Zs in the
labor force who, during the reference period, reported to be either (a) without
work, currently available for work, and seeking work or (b) without work,
currently available for work, but not seeking work due to valid reasons.
The study adopted a concurrent triangulation design that involves the simultaneous
but separate collection, analysis, and interpretation of quantitative and qualitative data.
The results of the quantitative and qualitative phase are compared to corroborate the
findings and substantiate national and region-specific policy recommendations.
Using the generational theory framework and thematic analysis, the variables reflected
in Figure 2 are used to identify patterns and trends among the Gen Z respondents
and depict their labor market situation.
Figure 2. Theoretical Framework and Thematic Analysis of Generation Z in the
Labor Force
Source: Author’s own illustration based on Codrington (2018) and Goh & Lee (2018)
The quantitative data gathering was implemented through snowball sampling and
entailed the dissemination of an online survey among Gen Zs. Qualitative data was
gathered through the conduct of several focus group discussions (FGDs) among
representatives of tripartite partners in the regions of Luzon (National Capital Region
[NCR] and Region IV-A), Visayas (Region IV), and Mindanao (Region X and Region
XI) with the highest number of 15-24 y.o. members of the labor force6. The conduct of
the qualitative data gathering is detailed further in Table 2.
6 The youth population key employment indicators data extracted by the Bureau of Local Employment
from the 2020 LFS Public Use Files was used as a proxy representation of Gen Zs in the labor force.
National Capital Region December 6 Manufacturing, Education
Region IV-A – Laguna December 9 Finance, Construction,
Government, Hospitality, Services
The online survey was self-administered and rolled out through the Institute’s social
media accounts and various Facebook groups. The researcher coordinated with the
National Youth Commission (NYC) for the dissemination of the online survey to around
600 member-organizations of the Youth Organization Registration Program (YORP)
throughout the country. The survey rollout ran from 10 November to 19 December
2022 and garnered 163 responses. The final number of survey respondents that was
used as the basis of analysis in this study was 160 after data cleaning.
Informed consent and data privacy was ensured in both the qualitative and quantitative
data gathering phase. Utmost measures guaranteeing confidentiality and anonymity
was observed in the analysis of the results. The study expounds on collected gender-
disaggregated data to integrate a gender lens into the analysis.
The study is limited to Gen Zs in the 15-25 age range, and while the study offers
valuable policy insights, it presents several limitations: (1) analysis shown is limited to
the 160 Gen Z respondents and cannot be generalized to the overall Gen Z population
since the study adopted non-probability sampling; (2) around 74.4% of the online
survey responses were from NCR and Region IV-A Gen Z residents, making the
results Luzon-centric; (3) primary data from the online survey on monthly salaries are
self-declared and may or may not be the same as the salaries stated in their respective
contracts; and (4) since the online survey was self-administered, respondents were
merely guided by the notes and instructions that are subject to their interpretations.
Nevertheless, the study’s paradigm is a pivotal step in providing a useful snapshot of
labor market information reflecting the salient beliefs and profile of Gen Zs in the
country.
Demographic profile
The average age of the Gen Z respondents was 21 y.o., with a predominantly female
(68%) response rate. Most of the Gen Z respondents finished at least high school
(85%) while only around 29% were at least college graduates. By field of study, 34%
finished college degrees in business, administration, and law, while 26% were
education and social sciences majors. By region, majority of the responses gathered
were from NCR and Region IV-A Gen Z residents. Figure 3 and Figure 4 illustrates the
demographic profile of the employed Gen Z respondents.
Figure 3. Gen Z Respondents’ Demographic Profile7
Around 29% of employed Gen Zs agree that they often think of leaving their
company or organization. They also expressed their agreement that they were going
to look for a new job within the next year that is reflective of their intent to switch jobs.
Gen Zs, being a relatively new and distinct generation in the workforce, may be more
vocal about their priorities and immediately seek other job opportunities that meet their
specific needs and values.
Figure 6. Employed Gen Zs’ Turnover Sentiment and Additional Work Engagement
The following reasons were identified by stakeholders regarding why Gen Zs may be
leaving their jobs early or subscribing to the job-hopping trend:
b. Work-life balance. Gen Zs also prioritize work-life balance and are more likely
to leave a job that doesn't offer flexibility or time off for personal pursuits.
e. Financial reasons. Some members of Gen Z may also leave a job early for
financial reasons, such as if they are not being paid enough to support
themselves or their family.
The job-hopping trend among Gen Zs has caused concern among the industry
representatives since some claimed that such behavior can be seen as negative,
reflecting on the work ethic and attitude of Gen Zs. The resilience and skills of Gen Zs
were also questioned which may impact their chances in securing decent employment
opportunities.
Around 22% of employed Gen Zs were involved in other jobs aside from their
full-time work, engaging in business (31%) and online or freelance gigs (25%).
Specifically, those partaking in online jobs identified clerical and data entry,
bookkeeping, and writing and translation as the specific work they do. Employed Gen
Zs decided to take on more jobs to gain additional work experience, pay for their non-
essentials (clothing, recreation, travel) and essentials (bills, rent).
The unpredictability of the labor market could be a factor in the decision of Gen Zs to
hold multiple jobs or side hustles to prepare for potential changes or instability. Further,
side hustles can offer an opportunity to develop skills in a different field or gain
experience in a specific area while earning more income to pursue passions and
interests.
It is worth noting that holding multiple jobs or side hustles can also come with
challenges, such as managing multiple schedules and responsibilities, not having
consistent income or benefits, and possible risks to their health and well-being.
However, Gen Zs may feel that the benefits of multiple income streams and pursuing
their passions outweigh the potential downsides.
Job satisfaction
Overall, the Gen Z respondents were satisfied with the workplace indicators
identified in Figure 7, which include their work hours, workload, the use of technology
in their work, the autonomy they have at work, their current work arrangement, work-
life balance, and opportunities for career growth.
Job satisfaction is important for both individual employees and the organizations they
work for. When employees are happy and fulfilled in their work, it can contribute to
personal well-being, productivity and performance, retention and loyalty,
organizational reputation, and overall success. When employees are satisfied with
their jobs, they are more likely to stay with their current employer and be loyal to the
organization. This can help reduce turnover and increase stability within the
workplace. Workers are also more likely to be motivated and committed to performing
their best as they fulfil their work with a greater feeling of purpose and fulfillment.
Gen Zs may prioritize different factors than previous generations when it comes to job
satisfaction. As a generation that grew up with unlimited access to technology, they
may have higher expectations for the role of technology in the workplace. They are
more likely to expect their employers to use the latest technologies and to offer flexible
work arrangements that allow them to work remotely or use technology to collaborate
with coworkers.
Figure 7. Gen Z Respondents’ Job Satisfaction
Employer and colleague expectations
Gen Zs have certain expectations for their employers and colleagues. Observations
from some stakeholders showed that Gen Zs were particular about the kind of
leadership they want, and that they value support from their employer for their career
progression.
Most Gen Zs want respect for their opinions and knowledge (29%), good leadership
(27%), and support to learning and development (20%) from their employers. They
also valued leaders that show transparency and mutual trust regardless of their
standing in the organization or their age. From their colleagues, Gen Zs also expect
their opinions and knowledge to be respected (43%) and to cultivate mutual trust
(26%). Gen Zs also wanted to develop friendships and camaraderie with their
colleagues in the hope of building their networks early on in their careers (Figure 8).
Skills assessment
When asked about their capacity in performing their work, 45% of the Gen Z
respondents feel that they have skills to perform more complex tasks than what they
are currently given. Around 33% claimed their skills match the skills needed for job,
while 15% think that their skills need to be further developed to cope with some tasks.
Figure 9. Gen Zs’ Skills Assessment
As shown in Figure 9, Gen Zs mostly feel qualified in performing the technical, literacy,
numerical, and computer skills required for their work. They also feel that they have
adequate problem-solving, communication, teamwork, and customer-handling skills.
Despite a mostly positive skills assessment response turnout from the Gen Z
respondents, those that identified their skills were currently inefficient in performing
some tasks must be given attention. The job-skills mismatch is a common challenge
faced by many members of Generation Z, which occurs when there is a disconnect
between the skills and qualifications that individuals possess and the skills and
qualifications that are required for the jobs. The job-skills mismatch may be due to
education lagging behind industry demand, rapid technological change, changing
nature of work, or limited employment creation of well-paying jobs.
Most of the self-employed Gen Zs identified as female (75%) and chose to be self-
employed mostly due to the flexible work hours (31%) and the work arrangement such
jobs offered (19%). Self-employed Gen Zs also cited their preference to pursue other
interests aside from their work as a consideration.
Figure 10. Self-Employed Gen Zs by Type a
Existing economic conditions and preferences for autonomy and flexibility can make
self-employment or entrepreneurship a more attractive option for Gen Zs. Further, Gen
Z is the first generation to have grown up with ubiquitous access to technology and
the internet, making it easier for them to start their own businesses, market
themselves, and reach customers online. Self-employment or entrepreneurship can
also provide an opportunity for Gen Zs to pursue a passion project or turn a hobby into
a productive opportunity.
Gen Zs in the digital gig economy doing freelancing and crowdwork were
predominantly doing creative and multimedia work (25%), writing and translation
(25%), and tutorial services (25%).
When asked about the challenges they face in their work, some claimed to be
struggling with time management (29%), inadequate income (15%), lack of job security
(10%), and their internet connection (10%). As shown in Figure 9, most self-employed
Gen Zs immediately entered the labor market either in the physical and digital gig
economy or doing business and were not previously part of the formal economy.
Figures 10 and 11 further illustrates the self-employed Gen Z respondents by type,
sex, specific work performed, and work consideration.
Figure 11. Self-Employed Gen Zs’ Profile
Some members of Gen Z may simply find traditional job options unappealing or
uninspiring, which make them more willing to take risks and pursue their own path in
the gig economy that can offer more control over their schedule and work environment.
Self-employment can present several challenges for Gen Zs, exacerbating their labor
market vulnerability enumerated as follows:
b. Isolation and lack of support. Working for oneself can be isolating, and it may
be challenging to find the support and resources needed to succeed.
d. Lack of benefits. Gen Zs in the gig economy are responsible for their own
health insurance, retirement savings, and other benefits that traditional
employees may receive through their employers.
Around 34% of the unemployed Gen Z respondents claimed they lost their jobs
due to the pandemic and were having difficulty finding work due to lack of job
opportunities (26%), lack of relevant skills and experience (24%), and the lack of
decent-paying jobs (17%). Meanwhile, majority of the unemployed Gen Zs were first-
time jobseekers and have not had a full-time job in the past (77%).
Gen Zs may need more work experience and help to find entry-level positions in their
desired fields. Other factors contributing to the unemployment dilemma of Gen Zs
include:
a. Education and skills mismatch. Many Gen Zs struggle to find employment
that matches their education and skills due to a gap between the skills that
employers are looking for and the skills that Gen Zs have.
Unemployed Gen Zs were mostly using social media to find work (42%), followed
by using information from the Department of Labor and Employment (DOLE) and
Public Employment Services Offices (PESOs) at 21%, and JobStreet (22%).
Looking for work online or through social media platforms such as Facebook may be
precarious for Gen Zs since such spaces remain unregulated. Many online job scams
target job seekers, often promising high salaries or work-from-home opportunities that
turn out to be fraudulent. Privacy concerns may also arise, specifically when job
postings online require the provision of an applicant’s personal information such as
their full name, contact information, and job history, which can raise privacy concerns
and increase the risk of identity theft or fraud.
Online job opportunities may also not provide the same level of job security as
traditional jobs, particularly if they are short-term or project-based work.
Only about 23% of the unemployed Gen Z respondents received assistance from
DOLE or PESO in their job search and became beneficiaries of the First Time
Jobseekers Assistance, Special Program of the Employment of Students (SPES), and
the Government Internship Program (GIP). The unemployed Gen Z respondents’
profile is further detailed in Figure 12.
Figure 12. Unemployed Gen Zs’ Profile
Labor market considerations
For Gen Zs, income and career development are key priorities. Their main
considerations in choosing work were salary (33%) and opportunities for career growth
(26%), suggesting their intent to earn a high income while ensuring career progression
to further increase their value in the labor market.
Gen Zs also greatly considered the compensation and benefits and flexible work
arrangements offered by employers and if the job contributed to their advocacy or was
meaningful to society. According to employer and labor group stakeholders, Gen Zs
were already expecting to earn a high income despite their “insufficient skills and
experience” and would even resort to job hopping to increase their labor market value.
Other stakeholder sentiments on Gen Zs’ work considerations are outlined in Table 7.
Work arrangement
Gen Zs prefer a hybrid work arrangement. Around 43% of the total Gen Z
respondents chose hybrid work as their preferred work arrangement, followed by
remote work (work-from-home/anywhere) at 32%. This emphasizes the cohort’s
desire for increased flexibility in the workplace, while still considering the time in the
office and around colleagues as valuable.
Figure 14. Gen Zs’ Preferred Work Arrangement
The COVID-19 pandemic hastened the transition to hybrid work patterns as many
businesses were forced to use remote work to adhere to public health regulations. As
a result, many Gen Z employees are used to working from home and have discovered
that it allows them more flexibility and a better work-life balance. Gen Z workers have
also shown a greater interest in hybrid work since they prefer utilizing technology and
are comfortable with digital tools and virtual communication.
Some stakeholders observed that Gen Zs were shifting to online jobs and the gig
economy due to the flexibility it offers compared to conventional employers that require
on-site reporting. They added that even when working remotely, Gen Zs are still “able
to get the job done” and perform their work. In contrast, a few observed that Gen Zs
preferred working on-site since they wanted to make connections for their budding
careers (see Table 8).
Representatives from Visayas and Mindanao claimed that Gen Zs were attracted to
join the BPO industry due to the high salary and flexible work arrangements offered.
Common sentiments during the FGDs revealed that Gen Zs were seen as an
outspoken generation in the workplace when it comes to mental health. Some claimed
that Gen Zs were normalizing mental health discussions in the workplace and were
more open in talking about their struggles compared to older generations. A few even
mentioned that Gen Zs would not hesitate to resign if their mental health was being
threatened by certain factors in the workplace such as their workload, supervisor,
colleagues, or the existing work culture.
Globally, Gen Z workers have shown interest in labor unions, particularly as they face
challenges such as job insecurity, low pay, and lack of benefits (Maruf, 2021). While
many younger workers may not have direct experience with labor unions, they are
increasingly aware of the benefits that unions can offer, such as collective bargaining
for better pay and working conditions, access to health care and other benefits, and
protection against workplace discrimination and harassment.
However, union membership among Gen Z workers is still relatively low compared to
previous generations. This may be due to several factors, such as a lack of awareness
of the benefits of unions, fear of retaliation from employers, and the rise of gig economy
work that often falls outside of traditional union structures. Nonetheless, the growing
interest in unions among Gen Z workers suggests that they may play an increasingly
important role in the labor movement in the years to come.
Gen Zs’ Goals
Gen Zs are eager to learn new skills and increase their labor market value while
having a work-life balance. Almost all Gen Zs have set professional goals for
themselves, which include learning new skills (20%), earning a higher income (20%),
achieving a work-life balance (19%), and contributing more to society through their
work (12%).
The cohort’s desire to learn new skills and earn a higher salary may be partly because
they are entering the workforce at a time of rapid technological change, which has led
to a focus on upskilling and developing new competencies to remain competitive in
the job market. Economic uncertainties have led Gen Zs to focus on jobs that could
help advance their careers while increasing their earning potential, such as tech and
finance.
Migration intent
Gen Zs will work abroad to gain more income and benefits. Around 48% claimed
they would consider going abroad in the next five years, while 39% might/might not
consider going abroad. The reasons they identified for considering going abroad
include earning a higher salary and compensation (30%) and having better career
opportunities (21%) since they project the lack of employment opportunities for them
in the country (14%). Gen Zs might emerge as the most mobile segment of the
workforce as they seek better career opportunities that would enable them to achieve
professional growth and a high income.
Figure 18. Gen Z Respondent’s Migration Intent
Many Gen Zs are interested in the prospect of working abroad, whether for a short-
term stint or a longer-term career move, since the cohort wants to gain new skills and
experiences and exposure to different opportunities. However, such high migration
intent among Gen Zs may threaten the country's labor force supply as young, highly
skilled workers and education in their respective technical fields seek better economic
opportunities in other countries. The loss of highly skilled workers can exacerbate
existing social and economic inequalities and limit the potential for growth and
development.
This study considers the complexity of the youth employment challenge and outlines
the persistent constraints and scenarios young people face in the labor market. The
findings reflected the following key themes and its policy implications:
1. Youth unemployment. Unemployment is a significant labor market challenge
that can lead to a range of negative outcomes, including social unrest,
economic instability, and decreased social mobility among Gen Zs. Prolonged
unemployment can also affect young people's human development, as it can
limit their access to education, training, and other opportunities. Gen Zs who
could not retain or find employment could miss out on formative years gaining
experience and training, affecting their skills formation and future career
progression. Struggling to find decent work can also put Gen Zs at a further
economic disadvantage, increasing the cohort’s labor market vulnerability
through lower income prospects and forcing them to accept insecure and
precarious jobs. Gen Zs relying heavily on social media for their job search may
also be at risk of job scams that could end up making them more vulnerable.
The job prospects of Gen Zs might continue to be bleak amid economic
downturns, especially if employers are inclined to hire more experienced
workers and if no decent employment is created to match the supply of new
labor market entrants. A comprehensive public sector-led employment
framework can help mitigate these negative consequences and provide young
people with opportunities to achieve their potential.
2. Skills gap and job-skills mismatch remain a top labor market concern for
Gen Zs. Matching skills and jobs are gaining importance with rising
unemployment and increasing difficulties for people entering the labor market
to find jobs matching their potential. The prominence of skill mismatch is a core
issue on many policy agendas, especially as Gen Zs actively seek out
education and training opportunities to bridge the skills gap, enabling them to
ensure career progression, productivity, and economic opportunities. Equal
importance should be given to the development of the cohort’s technical and
soft skills as core components to help Gen Zs utilize their employment
pathways.
3. Gen Zs hopping on the platform. The appeal of the emerging gig economy
and freelance work continues to entice Gen Zs into self-employment. The gig
economy is characterized by temporary or freelance work, independent
contractors, and short-term contracts, which often translates to the absence of
social protection and benefits enjoyed by workers in traditional employment.
Further, most employment laws, anti-discrimination protections, and social
dialogue rights would not cover self-employed Gen Zs. Gig workers may also
suffer unfair pay practices and face safety risks due to their limited control over
their working conditions. Policy solutions should include a broader range of
protection and support for self-employed Gen Zs.
5. The appeal of hybrid work. Many Gen Z workers are accustomed to working
remotely and have found that it gives them more flexibility. The Gen Z workforce
has also demonstrated a greater interest in hybrid work because they value
technology, are at ease using digital tools, and are adept at communicating
virtually. Hybrid work is particularly important for Gen Zs who place a high
premium on their mental health and work-life balance. As more employers
embrace hybrid work to retain talent and support health and well-being, it is
important to provide the necessary support and resources to ensure that hybrid
work arrangements can work.
8. High migration intent. Since the Gen Z generation is eager to learn new skills,
gain new experiences, and be exposed to new opportunities, many Gen Zs are
considering working abroad, whether as a temporary job or as a longer-term
career move. However, as young people with high levels of education and skill
in their respective technical fields look for better economic opportunities abroad,
the country's labor force supply may be threatened in the future due to the high
migration intent of Gen Zs. The potential for growth and development of the
country can be hampered by the loss of highly skilled workers, exacerbating
current social and economic inequalities.
Complex realities and constraints in the labor market would require comprehensive
targeted measures that provide youth employment facilitation and social support.
Regional stakeholders and industry representatives recommended strengthening
existing youth employment facilitation programs and helping develop the skills of Gen
Zs to make them job-ready. They also identified the need to support youth
entrepreneurs to ensure that Gen Zs meet their economic aspirations. Other
recommendations on education, employment creation and facilitation, skills
development, and well-being of Gen Zs are listed in Table 11.
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ANNEX
Annex 1. Gig Economy Classification
Type Definition
Online freelancing Clients look for independent contractors to bid for
their jobs and choose workers based on skills. The
tasks are more complex and technical, needing
specialized skills (e.g. search engine optimization,
software and web development, marketing, design,
writing, etc.). It is also well-paid, compared to
crowdwork.
Microtasking Microtasking is also described as “human
(Crowdwork) intelligence tasks” or “cognitive placework”. Many
unspecified and anonymous workers self-assign
themselves to small and repetitive tasks, which do
not require much skill. Crowdworkers complete
tasks that are cheaper and better done by humans
than computers and are usually related to data
processing, data validation, audio transcriptions,
sentiment analysis, and content moderation.
Content-based creative The workers hand in solutions where usually one is
crowdwork selected and paid for by the client, while the rest are
rejected and receive no pay. Denied workers keep
the copyright of their work, but their work become
irrelevant to anyone else because they were
tailored for a specific client.
Physical gig economy Physical gig economy services or goods are
delivered physically, such as Grab (online ride-
hailing app) and Airbnb (an online marketplace for
short-term lodging).
Source: Schmidt (2017)