Generation Z could be the generation that eventually closes Romania’s historical gap vs. the Western European countries, according to new research developed by McKinsey & Company Romania.

Ever since its accession to the European Union in 2007, Romania has significantly raised its level of economic development. If it continues to grow at a rate of at least 2.3% yearly, Romania’s economy is set to converge with the EU average by 2050 and thus fulfil the country’s historical aspiration. By then, most business leaders and political decision makers will be members of Generation Z. Defined as those born from the mid-1990s to 2010, Gen Z will comprise a third of the workforce in 2050 and—with a median age of 48—the country’s leadership. The burden of supporting Romanian society will thus fall mainly on their shoulders.

Thus, by supporting the development of this generation, Romania has a stronger chance of achieving its goal of economic and social convergence with the EU-27 by 2050 and thus capture an additional EUR 307 bn in GDP that could be channeled to further spurring the country’s economic prosperity and social cohesion.

According to the research, members of Gen Z currently possess many traits needed to boost Romania’s productivity. At the same time, this generation will need support to develop and strengthen six attributes it needs to succeed, starting with education.

• Lifelong education and training – For them to remain relevant in a fast-changing economic environment, Gen Z members will require opportunities for continuous education and skills training. According to research results, Gen Zs are unsatisfied with how the Romanian education system is preparing them for their future careers, and 1 in 3 members declares they are considering leaving the country in search for better training and career opportunities.
• Entrepreneurship and intrapreneurship – Being the business leaders of the next 25 years, young adults today need the support and empowerment of today’s generation to become entrepreneurial and proactive in building next-generation enterprises. Almost half (46%) of Gen Zs who are currently employed said they want to change their current field of work, with two thirds of the entire respondents saying they would start their own businesses if it were not for their lack of experience and capital, and one in three citing an unstable economic and political context as a barrier.
• Financial stability – While the most financially-educated generation yet, Gen Z still need to develop healthy and sustainable habits of spending, saving and investing, not only to maintain steady incomes, but also to help support the rising need for investments and the pension burden. While 75% of Gen Zs report saving money (vs. only 60% of the entire population), their investments are mainly redirected towards short-term outcomes, such as holidays and hobbies.
• Mental and physical health and well-being – As the population continues to age, in order to maintain productivity and minimize the burden on healthcare system, the mental and physical health of Gen Zs requires extra attention. While most of them (83%) regard mental health as the most important driver of their wellbeing, followed closely by physical health (79%), only half of Gen Zs rate their mental and physically health as ‘good or very good.’ Moreover, 66% of them said they have already experienced mental health difficulties at least once during their lifetime.
• Diversity and collaboration – More than any other generation before them, Gen Zs welcome and integrate minorities in the local workforce, a healthy practice that will support economic growth momentum, increase the labor pool, and foster greater societal equity. 9 in 10 respondents questioned said they are willing to interact with immigrants or form meaningful connections with them.
• Social responsibility – A socially-responsible society can improve health outcomes, foster higher educational achievement, create opportunities for a healthy work-life balance, and encourage financial stability—all of which help to drive productivity. Almost 1 in 2 Gen Z members aged 16-20 volunteer in their communities. Many Gen Zs express interest in helping the community, but they also recognize volunteering enables them to learn new skills and demonstrate their social utility.

The sociological research was conducted in June 2023, on behalf of McKinsey & Company Romania. Over 800 16- to 30-year-old Romanians living in urban areas were surveyed.

Download the full report Does Gen Z have what it takes to fulfill Romania’s economic potential? https://www.mckinsey.com/ro/overview/the-z-factor-can-gen-z-fulfill-romanias-economic-potential

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