Gen Z job security concerns could see hit to spending
Gen Z are the most worried about job security, meaning the increased optimism about their finances may not result in more spending, according to RSM UK’s Consumer Outlook.
RSM’s survey of 2,000 consumers found 56% of Gen Z are concerned about job security or employment opportunities over the next six months. That’s up from 53% in March 2026 when the Iran war began escalating and up from 42% when compared to all consumers.
Gen Z have an average of 22% of their monthly income left after paying essential costs, which has dropped from 26.4% in March 2026.
However, Gen Z are the most optimistic about their financial outlook, with nearly two-thirds (65%) saying they expect to have more money in three months’ time, rising from 55% in March 2026 and up from 39% across all age groups. That said, 9% of Gen Z said they plan on drawing down on savings over the next three months and 27% will save less, up from 5% and 19% respectively, in March 2026.
Jacqui Baker, Partner and Head of Consumer Markets at RSM UK, said: “Gen Z’s optimism about their finances appears to be on the up, but concerns around job security and pressure on budgets mean their willingness to spend could go in the opposite direction. Gen Z continue to rely on their savings as a financial cushion, highlighting their exposure to rising costs, while fewer job prospects will also add to their cautiousness. This age group is an important growth audience, but brands shouldn’t assume they have the spending freedom to match their confidence, despite tracking higher than older generations.”
Robyn Duffy, Consumer Markets Senior Analyst at RSM UK added: “Unfortunately, the economic outlook for UK consumers isn’t much rosier. Despite a recent rebound, consumer confidence will be tested later this year when winter energy bills feel the brunt of higher oil prices, alongside higher food inflation driven by the hot weather. A cooling labour market which is disproportionately hitting young workers, combined with the prospect of tax rises in the upcoming Budget, also raise the likelihood of renewed volatility in consumer confidence.
“The good news is that the saving rate remains elevated by historical standards, which should provide many consumers with a buffer and support consumption. However, having the ability to spend is different to having the confidence to spend. The big question hanging over the final crucial trading quarter of 2026 will be whether the political and economic environment can be stable enough to provide the right conditions for spending.”