A series of setbacks have prevented Generation Y from building wealth and positioned them behind the elder generations when it comes to career and finances. Now the war in Ukraine is putting even more pressure on their budgets and exacerbating anxieties. Russia's brutal invasion is expected to cut global economic growth and continue to push up food prices. "Everything is getting so much more expensive all of a sudden. I can't even find rice or oil in the supermarket," Lamen, a 27-year-old father, told DW . Like Lamen, many members of this cohort born between 1980 and 1996 — perhaps better known as "millennials" — have had to adjust, cancel or delay plans due to global crises.
After beginning a bachelor's degree in languages in 2019, Lamen started having second thoughts about his career path. With the support of his family, he left Guinea to pursue a career in Germany. But the birth of his first child and the need to enter the job market forced him to switch to vocational training in sales — a move, he believes, will help him secure a job faster. "My family wanted me to continue studying, but I couldn't. I need to have money in my pocket, I have a daughter," he told DW . "I fear for the future. I wonder whether I will even manage to build financial stability."
In a recent report, the Kiel Institute for the World Economy forecast that the economic turmoil caused by the war in Ukraine will likely cost Germany around €90 billion ($99 billion) in economic output for the 2022-2023 period. Inflation is also expected to hit the highest rate ever seen in reunified Germany, soaring to 5.8 per cent for the same period.
One crisis after the other
Often considered unlucky when compared to their predecessors, who enjoyed spending booms, millennials are known for their financial baggage and having less disposable income than older generations did when they were young. The older members of Gen Y were in their twenties when the 2007-2008 global financial crisis hit and left 15 million young people unemployed across the 38 members of the Organization for Economic Co-operation and Development (OECD) alone.
The COVID-19 pandemic also brought economic consequences for countries across the world. Rüdiger Maas, a psychologist and founder of the Institute for Generational Research in Augsburg, said it is still too early to predict how the war in Ukraine will impact each generation. But one thing is certain: price increases and supply chain bottlenecks will affect everyone, particularly those in precarious living conditions.
Seeking stability
Geopolitical and financial crises aren't the only strain on Gen Y's bank accounts. So are low wages, debt, unpaid internships and unstable contracts. "Millennials are the best-educated generation, but also the most underpaid," Maas said. "Some of them are having children now and they have the problem that the labor market doesn't offer them many options. A lot of things are hitting millennials right now."
Entering the workforce has been a long story for some millennials, who struggle to find a middle ground between a stable paycheck and following their dreams. That's the case for Friederike, a 30-year-old German artist who longed for financial stability as she grew older. "When I was 18, I thought I didn't need food or money. I felt that I would somehow make it. It doesn't work that way," she said. After finishing her postgraduate studies, Friederike completed a total of seven unpaid internships and didn't make any money for a year before deciding to quit her job as an art therapist and became a teacher. She was 27 when she began her career in education.
Growing fears
Looking back, Friederike is happy she made that decision, especially after seeing many struggle to keep their jobs during the pandemic. "I am thankful that I chose to be a teacher because it gave me more stability to manage [my finances] in these unstable times," she said. The war has also changed her perspective on life in Europe. "It's a new level of uncertainty. And I feel that quite strongly. Before, I thought Europeans lived in very stable countries that were untouchable. I see that differently now," Friederike added.
Meanwhile, Lamen hopes he finds better job prospects after finishing his vocational training. His main worry now is having to pay his bills while waiting to finish his studies and finding a full-time job. "I live in a small student apartment now, but my daughter is growing and I will have to move soon," Lamen said. "How much will the rent be then? What about the utilities? Will the price increases ever stop?"
COMMents
SHARE