Gen-Z Feeling Economic Pressure Despite Strong Job Reports

New behavioral study shows young consumers prioritizing stability, savings, and selective experiences amid rising costs and job security concerns

Published on Feb. 28, 2026

Got story updates? Submit your updates here. ›

A new behavioral study from ECGO, based on 25,000 real-world consumption submissions from 760 Gen-Z students, reveals that economic caution is shaping daily purchasing decisions for young consumers. Despite recent federal job reports showing steady employment growth, Gen-Z reports feeling negative about the economy, with 73% citing rising cost of living as their primary concern and 43% worrying about job security. The data shows Gen-Z is making strategic trade-offs between name brand and private label products, focusing spending on food, savings, and selective experiences.

Why it matters

This study provides a unique behavioral lens into how Gen-Z is navigating economic volatility in real time, beyond just survey intentions. It highlights the disconnect between headline job growth and the more nuanced reality young consumers are experiencing, with entry-level hiring remaining below previous peaks. The findings offer valuable insights for brands, retailers, and policymakers on shifting brand loyalty, category prioritization, and price sensitivity among this key consumer demographic.

The details

The 2026 State of Gen-Z Consumption Report from ECGO analyzed 25,000 real consumption submissions from 760 Gen-Z students across 2024-2025. Key findings include: 56% of Gen-Z report feeling negative about the economy, 73% cite rising cost of living as their primary concern, and 43% worry about job security. 91% say price directly influences their purchasing decisions. In food purchases, 76% remain name brand, while private label gains traction in staple categories like pantry basics and baking ingredients. When asked about 2026 spending priorities, 80% cited food & groceries, 56% saving & investing, 30% experiences, and 29% housing.

  • The report analyzed consumption data from Gen-Z students across 2024-2025.

The players

ECGO

A behavioral data platform that analyzes real-world consumption patterns to provide actionable consumer intelligence.

Nicole Toole

Founder and CEO of ECGO.

Got photos? Submit your photos here. ›

What they’re saying

“Gen-Z is watching the labor market closely. They see growth in the headlines, but they also feel tightening conditions at the entry level. Their behavior shows incredible preparation, not panic.”

— Nicole Toole, Founder and CEO of ECGO (PRNewswire-PRWeb)

“Gen-Z wants stability. They want a future they can count on. And they still want to have fun and create meaningful experiences with the people they love. This data shows they are prioritizing all three; security, progress, and connection — even under economic pressure.”

— Nicole Toole, Founder and CEO of ECGO (PRNewswire-PRWeb)

The takeaway

This study highlights the disconnect between headline economic indicators and the real-world experiences of young consumers. Despite strong job reports, Gen-Z is feeling the pressure of rising costs and job insecurity, leading them to make strategic trade-offs in their purchasing behavior to prioritize stability, savings, and selective experiences. Brands, retailers, and policymakers should take note of these shifting consumer trends and adapt accordingly.