Legendary economist says Gen Z will have to “work a lot harder” to survive the AI age and could live poorer than their parents
Young people using mobile phones (Photo: Antonio Guillen Fernández / Panthermedia / Profimedia)
Gen Z will have to work significantly harder than previous generations to maintain their standard of living as artificial intelligence reshapes the job market, with many facing the prospect of earning less than their parents, according to Gary Shilling, an economist who correctly predicted both the dot-com and housing bubbles.
Shilling, 88, left his position as chief economist at Merrill Lynch to found the consulting firm A. Gary Shilling & Co. in 1978. He has now warned that mutations caused by AI are “a real concern” that could leave some people “selling hamburgers on the street corner”.
“The world doesn't owe us anything,” says Shilling. “Young people will have to work very hard to find areas where they can add value and increase their productivity, because that's what matters in the end”
His assessment comes as mounting evidence suggests that Gen Z are facing more dire economic circumstances than their parents faced at similar ages.
Structural transformation. The situation in Romania
The transformation goes beyond individual career prospects, targeting fundamental economic structures. McKinsey estimates that up to 30% of current jobs in developed economies will be transformed or eliminated by automation and AI by 2030, with the most exposed being administrative services, accounting, retail, transportation and logistics – precisely the sectors where young people traditionally find entry-level jobs.
In Romania, estimates show that over half of current jobs will be affected by AI. However, only a third of young Romanians possess advanced digital skills, compared to an average of 60% at European level, according to Eurostat.
The most exposed sectors in Romania: manufacturing, agriculture, trade, transport.
Romania needs massive retraining programs – almost eight times more adults would have to attend training courses to reach the level of the Nordic countries, according to the cited report.
The Organization for Economic Co-operation and Development predicts that Generation Z will need to retrain three to five times during their working life, a rate unprecedented in modern work history.
Erosion of purchasing power
Although nominal wages have risen, the cost of core assets has dramatically outpaced income growth. In Romania, average net wages have doubled in the last decade, but housing prices have increased 3.5 times, with rents rising by 30 to 50% in just three years.
In cities such as Bucharest, Cluj-Napoca and Brasov, new apartments now cost 10 to 12 times the average annual salary, compared to five to six times a decade ago. Even with moderate inflation, the real purchasing power of wages remains below 2019 levels.
Young people today save on average half of what their parents did at the same age, Eurostat data shows. Access to credit has tightened, while energy, transport and food costs have intensified pressure on household budgets.
More than half (55%) of young Romanians receive financial help from their family, this dependence decreasing with age – from 77% among 18-21-year-olds to only 40% among 30-35-year-olds. The amount received is usually up to 5,000 lei per year.
