How Economic Conditions in Early Adulthood Shape Personality

The Conference Board forecasts that economic weakness will intensify and spread broadly throughout the U.S. economy in the second half of 2022 and expects a recession to begin before the end of the year. That's the bad news.

But there's a bright spot in dark times: If narcissism and a sense of entitlement are as rampant among young adults as social scientists, researchers, and cultural commentators believe, the economic downturn forecast by many financial leaders and institutions may have an unexpected benefit. Studies conducted among three cohorts of people born between 1930 and 1994 found that those who experienced hard times in their late teens and early twenties were less likely to be narcissistic and entitled than those who had seen times of easy wealth and felt deserving of the good things that came their way, regardless of the effort expended to achieve them.

These findings suggest that economic conditions during the formative period of life not only affect how people think about finances and politics but also how they think about themselves and their importance relative to others.

Those who entered the workplace during the worst economic conditions scored lower on a 40-point narcissism scale and were more likely to become well-rounded adults than those who enjoyed an easy start to life. They were less self-obsessed and felt less like they were owed good fortune than those who came of age during a more favorable economic period, as most young adults today did.

The last cohort the study examined was born between 1980 and 1994, and unemployment rates may not be as valid an indication of economic conditions as they usually are, particularly when they’re as historically low as they are today. But even so, today’s young adults often have difficulty finding jobs that match their needs and expectations: “Sure, there’s work out there, but not what I’m looking for,” say college grads dissatisfied with what’s on offer. “Maybe I’ll get desperate later, but I can do gig or shift work until I find something that checks off all or most of my requirements.”

Gen Z’s desires when it comes to prospective employers give a glimpse into what they value: creativity and self-expression, desire for collaboration as well as independence, opportunities to gain new skills, a focus on social and environmental issues, and the championing of inclusion and diversity.

The pandemic, which struck as today’s young adults were poised to enter the workforce after a period of economic expansion, dramatically affected their options, if not their expectations; they assumed that once it was over, or at least under control, they’d resume their glide path to the kinds of careers they’d envisioned opening up when they were ready for them.

Said a client recently, “My daughter was expecting it [the job hunt] to be easy; she’s always excelled, had excellent internships and good connections, and thought she’d walk right into it. But after almost a year of getting the doors slammed in her face by potential employers, she’s ready to compromise, take what she can get, and not let the rejections destroy her. My snowflake is getting tougher, which is probably a good thing, given the uncertainty of the present moment.”

Another woman, whose son did manage to find the job of his dreams, discovered that when times get hard, or even look like they’re going to get that way, the young are the first to be fired—a humbling experience. “He’s convinced he’s a failure,” she worries. “It’s the first time he’s experienced anything like that, and of course he sees it as all about him, not what’s happening in his business, which is going through a major disruption.”

And a father who describes his 23-year-old son as “always expecting the world to welcome him with open arms” is trying to temper those expectations without stepping on his ambition. “Getting the job he wants when we seem to be headed for a recession is not going to be as easy as life has been for him up to now.”

This man, who came of age during one of the worst economic conditions of recent times—the deep recession of the early 1980s and the aftermath of the 2008 crash—had a rocky start but fared well later in life. “As a parent, you want your kids to have it easier than you did, and if you can do that for them, you do. But I wonder if we do them any favor by not reminding them that having a fallback plan, especially in times as tough as these are shaping up to be, makes more sense than holding out for your first choice.”

Gen Z is entering the workplace during a time of great uncertainty and change, with Covid-19 having caused job losses and affecting the ways people work together. Despite all the chaos, they feel optimistic and ready to work hard. A study of 8,000 youth aged 16 to 24 conducted in 2020 indicated that 7 in 10 young people feel uncertain about their future—a sense that has risen.

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They are resilient, however, with 72% feeling prepared to deal with whatever life throws at them. Almost all (93%) believe they’ll have to work hard to achieve their goals—and 55% say this sentiment is stronger than a year ago.

But optimism prevails. Three-quarters (76%) feel positive about their future, and 91% want to make the most of what comes next for them, even if their adulthood is not as easy as their youth has been. “Thinking that the world revolves around you, that you’re special enough not to be affected by what’s really happening, is part of being young and brought up in relatively secure circumstances,” says a college counselor. “When it turns out you’re not as special as you thought you were and the circumstances change, especially through no fault of your own, you adapt. You don’t lose your optimism, but you do lose your sense of entitlement. You realize you have to work harder to succeed, it's not just going to be handed to you. You don't abandon your dreams and ambitions, you just put them on hold until conditions improve. And most of this generation is convinced that they will.”