Report: Younger employees working in public service are stressed over their jobs, worried about debt

The COVID-19 pandemic pushed many older workers out of their public service jobs and into early retirement—contributing to the start of the ongoing ‘great resignation’ economic trend while leaving a knowledge gap that’s not easy for younger generations to fill. New research from the MissionSquare Research Institute sheds light on the experiences of these younger employees as they navigate increased levels of stress and financial worries.

“Recruitment and retention of a talented and diverse next generation of public sector workers remains a critical need—and challenge—for state and local governments,” reads the report, “35 and Under in the Public Sector: Why Younger Workers Enter and Why They Stay (or Don’t).” The report is based on a nationally representative online survey of more than 1,000 state and local government employees ages 35 and under that was conducted by Greenwald Research between March and April. Researchers noted that focusing on the needs of younger workers through resarch is vital because so many people are retiring—a trend that’s expected to continue for the foreseeable future.

Sixteen percent of hiring managers surveyed said the largest anticipated number of retirements is happening right now; 53 percent said they think it will take place over coming years, based on responses to the organization’s annual workforce survey. Current recruitment managers are struggling to fill vacancies for key positions like law enforcement, health care and engineering, and say they’re having a hard time connecting with Generation Z—only 3 percent of human resources managers said they’ve been very successful in recruitment efforts.

The report provides insight into why these efforts might be failing.

Traditionally, public sector organizations have relied on competitive benefits packages to attract talent. And this continues to be the case—70 percent of respondents said they believe benefits offered by their public sector employers are competitive to those offered by private organizations. Pay, on the other hand, isn’t perceived as favorably. Only about half of all respondents said wage compensation is competitive to the private market. Forty-two percent said it’s not.

This observation is notable given the high amount of debt younger generations are in compared to their older colleagues.

“More than three in four (76 percent) describe themselves as very or somewhat stressed over the past six months, with personal finance (61 percent) and work/career (58) most often cited as big stressors,” the report continues. And when “thinking about their current situation, they majority of respondents (70 percent) report that their level of debt is a problem for them, with 22 percent describing it as a major problem. Only 7 percent report that they do not have any debt.”

Almost 80 percent of respondents said they should be saving more for retirement but can’t—with most saying they aren’t able to afford to do so because of debt, or other savings priorities.

While debt might be more of a burden than ever, young people are entering the public workforce for similar reasons that brought their older counterparts into the sector. Job security (32 percent), work/life balance (29 percent), health insurance and personal satisfaction with their job (28 percent) were most commonly cited as factors that first attracted respondents to their current job, the report says.

Sixty-seven percent of respondents said their workplaces are important and improve communities, 65 percent said it’s important that their teams are strong, and 64 percent said it’s important that their work aligns with their personal values. Morale was positive among respondents—but even so, 60 percent said they’re considering changing jobs in the “near future.”

“Asked why they are considering changing jobs, by far the most common response was because they want a higher salary (71 percent). The second and third most frequently endorsed responses were wanting a promotion/to advance their career (42 percent) and being burned out from the stress of their job (37 percent),” the report says.

For more information and to view the complete report, visit MissionSquare Research Institute’s website.