Share

Gen Z Salary Expectations for First Job Surge From 2 Years Ago


Gen Z’s salary expectations are skyrocketing as economic pressures mount.

While male college graduates expected to earn $71,900 yearly in 2023, that number surged to $101,500 in 2025, according to ZipRecruiter.

Why It Matters

Gen Z-ers, those born between 1997 and 2012, may be entering a job market that doesn’t meet their expectations.

In 2025, recent graduates had an average salary of $68,400, which was more than $30,000 less than the expectations of rising graduates entering the workforce.

What To Know

In 2025, rising graduates expected a $101,500 salary on average, according to ZipRecruiter. That was a stark difference from what they actually brought in on average, a salary of $68,400.

Salary expectations were also substantially higher than they were just two years ago, when ZipRecruiter reported that graduating women expected to earn $69,200, while men expected $71,900.

That represents a nearly $23,000 increase when accounting for inflation. However, some workplace analysts believe it symbolizes that the younger generation is just becoming more aware of their own value.

“Real wages have been falling for years, all while companies post record profits and reward execs with obscene bonuses and golden parachutes,” HR consultant Bryan Driscoll told Newsweek. “Gen Z sees the disconnect and is willing to stand up to try to bridge the gap. They, like many other generations, realize their labor has value, and they’re not afraid to walk if they’re undervalued.”

college graduates tossing caps
Stock image of college graduates tossing their caps into the air.

Getty Images

What People Are Saying

Kevin Thompson, the CEO of 9i Capital and the host of the 9innings podcast, told Newsweek: “Cost of living is up, and Gen Z isn’t just feeling it, they’re demanding more because of it. It’s about rent, groceries, and the fact that homeownership feels like a fantasy for many. As inflation pushes prices higher, salary expectations naturally follow.”

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “While some in prior generations will roll their eyes at Gen Z’s salary expectations, these monetary desires, while mostly unrealistic, reflect the inflationary pressures Americans are facing and the realization the lifestyle they want to achieve requires a higher level of financial success.

“Typically, younger members of the workforce want to spend more of their discretionary income on entertainment and travel, both industries that have seen a huge leap in pricing since the pandemic. It’s easy to see when you factor in those prices, paired with the elevated cost of living, why many are calling for higher salaries right out of the gate.”

HR consultant Bryan Driscoll told Newsweek: “Gen Z isn’t pulling the $100K number out of thin air. They’re responding to the reality of skyrocketing rent, absurd student debt, and jobs that demand more while attempting to pay less. Honestly this is just about basic math, and I think they’re under-calculating.”

What Happens Next

Gen Z is expected to make up 58 percent of the global workforce by 2030, and their salary expectations could cause disarray between companies and workers.

“Inflation doesn’t just squeeze consumers; it squeezes employers too,” Thompson said. “Why? Because to retain top talent, employers have to pay up. Gen Z knows their value and if one employer won’t meet the mark, someone else will.”



Source link