Gen Z workers claim they need $100k salaries to live comfortably

The increase in living costs is weighing heavily on young Australians, with a number of them prioritising a high salary when entering the workforce.

A recent study by Fiverr International, Gen Z and the Workforce surveyed 1,000 Australians, 18- to 22-year-olds, about their views of the workplace and career goals.

The increase in living costs derived from the cost-of-living crisis was pinpointed in the study as a major roadblock for young Australians, and it highlighted the mindset shift to the importance of a good salary.

Three-quarters (75 per cent) of young Aussies are now ranking salary as their top priority, a notable increase from the previous survey, which had the salary listed at only 10 per cent in 2022.

One-third (32 per cent) of the respondents went as far as saying that they would need to earn more than $100,000 a year to maintain a comfortable standard of living. Data from the Australian Bureau of Statistics (ABS) shows that the most common weekly income bracket for young Aussies is between $500 and $999, which accumulates to an annual salary wage of $26,000 to $51,993.

Almost 42.4 per cent of that group fall into this income bracket. Whereas, of those respondents, the average minimum income deemed necessary for a good quality of life was $87,800, highlighting the disparity between the need and the reality.

Matti Yahav, chief marketing officer at Fiverr, stated: “The majority of Gen Z have entered the workforce during a challenging time for the economy. With the cost-of-living crisis showing no signs of slowing, it is clear why those polled feel they need a significant amount of money to be able to live comfortably.”

Tertiary education was also somewhat disregarded by Gen Z respondents, deeming it as non-essential. Two-thirds (66 per cent) regard university as a “nice to have” rather than a necessity in terms of pursuing their dream career.

Self-starters and the entrepreneurial spirit were the consensus among the respondents, with 54 per cent saying they would consider freelancing at the start of their career compared to 48 per cent back in 2022.

“Although they are navigating choppy economic waters, this generation are self-starters, and it’s inspiring to see that many are considering pursuing a freelance career, which can provide both flexibility and work/life balance,” Yahav said.

“Businesses wanting to tap into the generation’s skills need to prioritise these factors, as well as appropriate salary packages, to capture Gen Z’s interest and the best talent.”

Fears of AI implementation taking over their potential jobs were also covered in the data, with over half of young Australians (51 per cent) being worried about the ramifications of AI on their careers.

Another concern was burnout and workload, with almost two-thirds (64 per cent) stating that they feel burnt out and more than half (59 per cent) expressing concerns about work/life balance.

Fear and uneasiness are key themes in this study, showing the difficulties that a number of young Australians are having in the workforce at the moment. Cultivated by a strenuous economic climate, young Aussies, like most Australians, are definitely feeling the pressure.