Three Ways Millennials Are Changing New Brunswick’s Economy
There’s been a lot said about millennials lately as older generations try to pin down exactly how they work, why breakfast cereal is so difficult and why they’re living with their parents.
What many don’t seem to accept is millennials are just doing whatever they can with whatever situation they’re finding themselves in. While a generation as diverse as Generation Y can’t be defined by any one or even set of particular traits, there are some economic and job trends that are unique to millennials.
It’s interesting to consider how these trends show up in a place like New Brunswick where concerns are a bit different.
Millennials aren’t buying houses – because they can’t
It’s getting harder and harder for millennials, or anyone really, to get in on the housing market in bigger cities.
According to a report by Bank of Montreal (BMO) released earlier this year, prospective millennial first-time home buyers are in no rush to enter the market as Canadian housing prices continue to rise.
BMO found that while almost all millennials surveyed (89 per cent) agree that there is value in home ownership, they’re willing to defer the decision to own until it’s personally right for them. More millennials view buying a home as making an investment decision rather than achieving an important life milestone.
The consensus seems to be that millennials are prioritizing other goals before buying a home, are reluctant to be left with no disposable income and are unsure of where to settle down.
This might seem like a good opportunity for a province of small cities and towns like New Brunswick to attract those tired of big city prices with its more affordable housing. But in a province where the unemployment rate is around 10 per cent, young adults looking for work often feel pressured to seek it out elsewhere.
Millennials want to do meaningful work
This year’s film by New Brunswick’s Hemmings House Pictures, The Millennial Dream, dug into this, exploring the values of this generation and the fact millennials prioritize purpose and impact over financial gain when it comes to jobs.
A paper by auditing firm Deloitte and the Billie Jean King Leadership Initiative explored the ways in which millennials are transforming culture and redefining the way work gets done. Two out of three respondents said they would keep working for a business because of its distinct purpose.
New Brunswick companies could take a cue from companies already taking this shift in values into consideration when it comes to keeping millennial employees happy. It’s not about having foosball tables and craft beer on tap in the office, it’s about having a clear purpose besides pure profit.
Millennials are realistic about major purchases (like cars)
Let’s be real – public transportation in New Brunswick cities is far from ideal. Few people taking advantage of public busing systems seems to mean that it’s rarely improved, creating a frustrating cycle of something not being fixed because people aren’t using it and people not using it because it’s not being fixed.
With few transportation options, cars are more of a necessity for millennials in New Brunswick cities than they might be in larger, more accessible cities with better public transportation and options like Uber and Lyft.
Last week, Bloomberg published a piece that explored whether auto sales have actually suffered under millennials. As it turned out, not so much. The study cited in the article found that in 2014, millennials bought more cars than Generation X for the first time and that the younger generation is using Uber and Lyft as substitutes for cabs rather than cars they own.
There’s no doubt that millennial trends exist, but painting an entire generation with the same lazy brush doesn’t account for differences within generations caused by where millennials live, what their opportunities are and who they are as individuals.