Generation Z and millennials could spark a mass resignation next year, according to a new report from background screening platform Checkr.
In Checkr's survey of 3,000 U.S. workers, 51 percent of Gen Z (those who are 18-27 years old) and 47 percent of millennials (those who are 28-43 years old) said they would find a new job if they weren't given a raise in 2025.
That's compared to just 20 percent of baby boomers (those who are 60-69 years old) who said the same thing.
"Gen Z, in particular, are in the early stages of their careers and are more likely to take risks, especially if they feel they aren't being fairly compensated in the face of higher prices across the board when it comes to the cost-of-living," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
The younger generations were also more likely to feel unhappy at work and think they were underpaid.
Gen Z and millennials reported lower levels of happiness, at 25 and 42 percent respectively, compared to 50 percent for baby boomers and Generation X (those who are 44-59 years old).
"Gen Z and millennials are facing an ever-changing job market," Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek. "Gone are the days when people spent their entire careers with one company, retiring with a gold watch and a pension. Today, competition for talent is fierce, and companies understand they need to pay up to attract and retain top performers."
And while only 46 percent of all workers in the survey said they were compensated fairly in 2024, Gen Z had the most qualms about their salary as roughly 43 percent said they were underpaid.
"Traditional workplace loyalty has been fundamentally disrupted," Michael Ryan, a finance expert and the founder of michaelryanmoney.com, told Newsweek. "Where Baby Boomers saw job security as a mutual commitment, younger generations see employment as a transactional relationship. Performance, innovation, and fair comp are the new currencies of workplace loyalty."
Amy Stewart, a principal of research and insights at Payscale, said workers have been most likely to leave health care positions this year. This is especially true for nurses who are struggling without enough resources to provide quality patient care.
Teachers also ranked high on the list for quitting their jobs in a recent Payscale report.
"People are seeking to quit positions where they feel overworked, understaffed, underpaid, or underappreciated," Stewart told Newsweek. "We don't yet know what 2025 will bring, but we can anticipate that the shift in U.S. administration will have an impact on the labor market and that people will continue to seek new opportunities with better benefits, more growth opportunities, flexible work environments, and better pay."
HR consultant Bryan Driscoll said workers have been rethinking their relationships with work more broadly since 2020.
"It's not surprising to me that Gen Z and Millennials are signaling they'll walk if they don't see raises," he told Newsweek. "These are generations raised in a world where corporate profits hit record highs while wages stayed flat and, in some cases, real wages even fell. To be clear, they're not just asking for more money - they're demanding respect for their work and yes, that's often shown through higher wages."
Compared to baby boomers who often stayed in jobs out of loyalty or fear of instability, younger workers are done with the "illusion" that loyalty will pay off in the end, Driscoll added.
"They've watched their parents grind for decades and still struggle to retire comfortably. Why would they settle for that? Gen Z and Millennials are forcing an evolution of the employer-employee relationship, and that benefits everyone," he said.
Jennifer Lee Magas, a communications professor at Nova Southeastern University, echoed this statement, saying Gen Z is rewriting the rules of workplace loyalty.
"For Gen Z, it's not just a paycheck—it's a value proposition," she told Newsweek. "They expect fair compensation and aren't afraid to walk if their expectations aren't met. Raised during the rise of influencer culture and the gig economy, they view career moves as strategic plays, not lifetime commitments."
Gen X and baby boomers, on the other hand, are in a completely different life stage. Many have children in high school or college or are just years away from retirement.
Still, there's a certain privilege that even Gen Z workers have to have in order to be able to leave a company, Driscoll added.
"Those who can afford to do so will," he said. "But even those who can't, those who are so overworked, so fed up with the system, they feel like they have no other choice."
In 2025, Driscoll said it's unlikely businesses will see a mass exodus of workers, but they will likely face a "revolving door."
"Higher turnover means more money spent on recruiting, training, and onboarding," he said. "If businesses want to avoid bleeding money on avoidable attrition, they need to step up. Pay fairly, offer meaningful growth opportunities, and treat your workforce like humans. Companies that don't reinvest in their workforce will pay the highest price. The question for companies isn't whether they can afford to do it—it's whether they can afford not to."
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