Gen Z In Latin America Having a Harder Time To Become Economically Independent Than Their Parents

Generation Z members in Latin America are having a harder time becoming economically independent than their parents did, according to a new report.

Concretely, Hernan Winkler, Senior Economist at the World Bank Poverty and Equity Global Practice for Latin America and the Caribbean, told Bloomberg Línea that even though poverty rates among members of this generation have dropped by half or more in most countries in the region, Gen Z's ability to accumulate wealth has also dropped.

Winkler illustrated the premise by saying that the "amount of young people who are heads in their home or spouses dropped from 35% to 32% from Gen X to Millennials, and from 32% to 26.5% from Millennials to Gen Z."

In another passage of the report, the outlet cited World Bank stats noting that Gen Z members see high amounts of people who neither study nor work (19%). Another challenge is the rise of AI, which is eliminating entry level jobs. "It's like asking young people to begin their careers on the third floor, but we removed the ladders," Winkler said.

Winkler added that school performance is dropping, with three in four 15-year-olds not showing basic math skills, which "reduces their chances of generating income." Consequently, he said Gen Z members will have to display skill adapting to an ever-changing market.

Moreover, the World Bank said countries will need to focus on improving education, promote continuous learning and help the transition to formal and sustainable employment.