Why JA? And Why Now?

by Junior Achievement USA, October 14, 2022

Generation Z has already been dubbed “The Pandemic Generation”(3). They, along with the subsequent Generation Alpha, are experiencing a seismic shift in the way we all work, learn, and communicate with each other. The long-term impact of these changes is yet to be felt, but in the short term, we are already seeing increases in mental health-related challenges(4) such as anxiety, depression, and a sense of hopelessness amongst Gen Z-ers.

The intent of this document is to highlight the challenges ahead for young people in the areas of work and career, financial security, and business ownership and how JA can help them become better-prepared adults.

U.S. employers have been struggling with responding to the large-scale shift of employees who have quit their jobs in the wake of the COVID-19 pandemic(8). According to the Pew Research Center, the reasons employees include low pay, lack of benefits, limited advancement opportunities, and the feeling of being disrespected(9). Pew also found that those with higher education, including four-year and advanced

degrees, were less likely to quit, though these groups are not immune to shifting jobs. Younger and less educated workers are most likely to leave. Similar factors contribute to “,” where workers do the bare minimum in their jobs, often while waiting for better opportunities(10). According to Gallup, as many as in the U.S. workforce are “Quiet Quitters”(11).

The pandemic also exacerbated the existing “skills gap”

many industries were already facing. Countless trained and experienced “Baby Boomers” retired during the pandemic. Unfortunately, younger workers often don’t have the same skillset, especially in skilled trades(12). The impact of this shift is not only measured in the opportunity cost employers take on by not being able to meet needs in the marketplace, but in the overall increase in wage inflation as a result of employers pursuing a smaller pool of qualified candidates(13). At the same time, less-qualified workers continue to feel under-compensated by and dissatisfied with their employment situations.

As noted, there are many structural reasons people are quitting their jobs, including pay, benefits, feeling under-appreciated, and more. But these reasons existed before the pandemic, and people were not changing jobs at historic rates like they are now.

The Oxford Dictionary defines “purpose” as the reason something exists, an intended end; aim; or goal. But if the nature of someone’s work doesn’t align with their talents, strengths, or interests, how purposeful can it be?

A few conclusions can be drawn from these statistics. First, there continues to be an inherent disconnect between education, higher ed, and preparation for a job or career. While some could make the case that the goal of education and higher education isn’t

A second conclusion is that while not everyone can be expected to be in their “dream career,” employee satisfaction is key to retention. Employees who feel they are doing what they intended to do for a living and utilizing their talents and skills to support their interests are more likely to find purpose and satisfaction at work.

Junior Achievement works with partners in education and the business communities to help ensure young people make more informed choices that lead to greater work and career satisfaction as adults. JA employs a pathways approach to teaching career and work readiness to young people. By “pathways,” we mean that JA programs are designed to engage students on the subject over multiple grades, from their first day in kindergarten to their K-12 years, preparing them for post-secondary education or work transition.

Junior Achievement takes this approach because, in many states, career and work readiness aren’t addressed until later high school grades, which may come too late for students who haven’t given the subject much consideration in earlier grades when they are taking courses which could ultimately affect their academic readiness and ability to pursue specific career paths. Since nearly all of us will work as adults, we at JA believe connecting students with career and work exploration throughout their K-12 journey is essential.

Junior Achievement’s proven programs are shown to inspire and prepare young people for success. Our approach is demonstrated to give students the tools they need to increase their chances of achieving their potential in work, career, and life.

• 73 percent of Junior Achievement Alumni who graduated college say they work in a field they studied in college. Research by the Federal Reserve Bank of New York shows only 27 percent of college graduates say the same.
• 69 percent of JA Alumni say they work in their “dream career.” Only 25 percent of Americans say the same, according to MidAmerica Nazarene College.
• 80 percent of JA Alumni say their careers are “extremely fulfilling.”
• 56 percent of JA Alumni who had a JA volunteer say they currently work or have in the past worked in the same field as their JA volunteer.
• 54 percent of JA Alumni say Junior Achievement positively influenced their work ethic.
• 46 percent of JA Alumni say Junior Achievement positively influenced their career choices.

Additionally, 4-in-5 JA Alumni credit Junior Achievement for(20):

• Influencing their decisions about further education.
• Impacting their professional and personal development.
• Affecting their self-confidence and belief-in-self.
• Motivating them to succeed professionally.

While have remained flat or declined for many U.S. workers in recent years(24), even those considered “high-income earners” (25), save for retirement, and be prepared for financial emergencies, according to a report by NPR.

Even if people have limited means, a better understanding of how money works and how one can use budgeting, cost management, and credit as a tool can help lead to better financial outcomes, which can contribute to a greater quality of life and financial wellness.

According to research by the Milken Institute, are financially illiterate(29). Additionally, the problem appears to be growing as than other generations on financial literacy tests(30). While a recent survey shows that wish they had a financial literacy course in school(31), about 25 percent of current high school students have access to one of these programs(32).

At Junior Achievement, we view financial literacy as “the other literacy.” Just like reading or writing, we all deal with money on a near daily basis. Yet too often, financial literacy programs consist only of a one- semester elective course in middle or high school that skims the surface of basic concepts. Nobody would be expected to read a book or write a term paper after one semester of lessons on reading or writing yet that’s essentially what happens with financial literacy education.

Junior Achievement employs a pathways approach to teaching financial literacy to young people. By “pathways,” we mean that JA programs are designed to engage students on the subject over multiple grades, from their first days in kindergarten, throughout their K-12 years, preparing them for the transition to post- secondary education or work.

· 82 percent of Junior Achievement alumni agree they have a strong financial footing.

· 84 percent of JA Alumni agree that their Junior Achievement experience helped with their financial literacy.

· 68 percent of JA Alumni between the ages of 18 and 29 say they are financially independent of their parents. According to the Pew Research Center, 34 percent of Americans in that age range say the same(35).

· The average age JA Alumni report paying off student loans is 30.

· JA Alumni report purchasing their first home at 29. The National Association of Realtors reports the average age Americans purchase their first home is 33(36).

One of the surprising outcomes of the pandemic’s impact on the economy is the 37 In fact, the rebound in entrepreneurial activity disrupted nearly 40 years of lackluster small which had only worsened following the Great Recession of 2008(38).

According to the Harvard Business Review, the average age of successful first-time . However, as the Review points out, venture capital (VC) funds tend to put their resources behind startup founders in their late 20s or early 30s(42). Ironically, the is related directly or indirectly to lack of experience, including launching a product or service where there is no market need, running out of cash, not

having the right team, cost and pricing issues, and not having a business model(43). This points to the fact that given the proper information, tools, and guidance, young entrepreneurs can increase their chances of success with their business endeavors.

Junior Achievement employs a pathways approach to teaching entrepreneurship to young people. By “pathways,” we mean that JA programs are designed to engage students on the subject over multiple grades, from their first day in kindergarten, throughout their K-12 years, preparing them for the transition to post-secondary education or work.

Junior Achievement takes this approach because, in many states, entrepreneurship is an elective option and, in numerous cases, is offered only as an extra-curricular activity for no school credit. Given that most of us will work for a small business at some time, and all of us interact with small businesses, we at Junior Achievement believe it’s important to offer programs that cover entrepreneurship and small business across multiple grade levels.

• 51 percent of JA Alumni say they have started or owned a business. According to Statista, 8.9 percent of Americans own businesses(45).
• 53 percent of Black JA Alumni and 67 percent of Hispanic/Latino Alumni say they have started or owned a business.
• 56 percent of JA Alumni who had a JA volunteer say they currently work or have in the past worked in the same field as their JA volunteer.
• 36 percent of JA Alumni say Junior Achievement positively influenced their perception of business owners or community leaders.
• 27 percent of JA Alumni say Junior Achievement positively influenced their decision to start or run a business.
• 27 percent of JA Alumni say they employ 100 or more people(46). The U.S. Census Bureau reports only 1.7 percent of U.S. small businesses say the same(47).

Footnotes

1. “6 facts about economic inequality in the U.S.,” Pew Research Center, February 7, 2020
2. “What’s Really Causing America’s Mental Health Crisis?” NPR, September 24, 2022
3. “Today’s children are the pandemic generation.” Columbia Climate School, May 12, 2020
4. “The Gen Z Mental Health wave — what is causing the surge?” HealthMatch, September 2, 2022
5. “Why Are Millennials So Risk-Averse?” Federal Reserve Bank of Atlanta, January 22, 2019
6. “2021 JA Back-to-School Survey: Hopes, Dreams, and Challenges for a Different School Year.” Junior Achievement, August 2021
7. “Junior Achievement Alumni Survey Report 2021–2022,” Ipsos, August 2022
8. The Great Resignation, Investopia, September 14, 2022
9. Pew Research Center, March 9, 2022
10. Quiet Quitting, Wikipedia, August 2022
11. “Is Quiet Quitting Real?” Gallup, September 6, 2022
12. “The Skilled Labor Shortage,” Conger, May 17, 2022
13. “The Effects of the Great Resignation,” Federal Reserve Bank of Chicago, February 2022
14. “Employees Seek Personal Value and Purpose at Work,” Gartner, January 13, 2022
15. “Help Your Employees Find Purpose or Watch Them Leave,” McKinsey, April 5, 2021
16. “To Retain Employees, Give Them a Sense of Purpose,” Harvard Business Review, October 11, 2021
17. Federal Reserve Bank of New York, December 2014
18. MidAmerica Nazarene College, December 2018
19. “Americans Strongly Agree on the Benefits of College,” Forbes, July 25, 2022
20. Ipsos/Junior Achievement Alumni Survey, August 2022
21. Morning Consult, January 2022
22. Gallup, August 2022
23. NPR/Robert Wood Johnson Foundation, et al, October 2021
24. U.S. Bureau of Labor Statistics, August 2022
25. “Paycheck-to-Paycheck Nation,” NPR, December 16, 2020
26. National Study, FINRA, July 18, 2022
27. “Financial Education for Today’s Workforce,” International Foundation of Employee Benefits, 2016
28. “Stress in America,” American Psychological Association, February 4, 2015
29. “This is Why Americans Can’t Manage Their Money,” CNBC, April 8, 2022
30. The 2021 TIAA Institute-GFLEC Personal Finance Index
31. “88% of adults support requiring personal finance education in high school, survey finds,” CNBC, April 27, 2022
32. “Nearly 1 in 4 students in the U.S. has access to personal finance education this year,” CNBC, April 22, 2022
33. “Junior Achievement’s Approach to Evaluation,” Junior Achievement USA, 2016
34. Ipsos/Junior Achievement Alumni Survey, August 2022
35. Pew Research Center, October 23, 2019
36. National Association of Realtors, March 2021
37. “Business Formation Surged during Pandemic and Remains Strong,” NBER, September 2021
38. “Start-up Boom in the Pandemic is Growing Stronger,” The New York Times, August 19, 2021
39. “The Small Business Economy is Set to Soar in 2022,” Nasdaq, December 20, 2021
40. Junior Achievement/The Hartford, February 2022
41. “The Percentage of Businesses that Fail and How to Boost Your Chances of Success,” LendingTree, May 2, 2022
42. Research: The Average Age of a Successful Startup Founder Is 45, HBR, July 11, 2018
43. The Top 20 Reasons Startups Fail, CBInsights, November 6, 2019
44. Ipsos/Junior Achievement Alumni Survey, August 2022
45. Statista Research Department, August 5, 2022
46. Ipsos/Junior Achievement Alumni Report, August 2020
47. U.S. Census Bureau, 2020