New Opportunities and Challenges Arise for Global Cities as 693
Million Boomers Reach Retirement Age and 1.3 Billion Gen Z Set to Enter
Workforce
CHICAGO--(BUSINESS WIRE)--
The retirement of Baby Boomers and the debut of Generation Z workers,
along with other demographic shifts, has major implications for real
estate occupiers, investors and policy-makers around the world according
to a new global research report from Cushman & Wakefield (NYSE: CWK).
All stakeholders need to understand the impacts of these trends and how
to position themselves to maximize opportunities.
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Figure 1: Real GDP growth vs. working-age population growth, global analysis, 2020-2030
Entitled “Demographic Shifts: The World in 2030,” the report
analyzes the seismic shifts in workforces worldwide as 693 million Baby
Boomers reach retirement age and 1.3 billion members of Gen Z enter the
labor force over the next 10 years.
The report looks at the different approaches to work and lifestyle taken
by Baby Boomers, Millennials and Gen Z around the world, and the impact
on workplace strategy, sectoral growth and the changing order of the
world’s cities over the next decade as one generation exits the
workforce and another enters.
“These demographic trends will drive the pace of growth in cities around
the world,” said Dr. Dominic Brown, Head of Insight & Analysis, Asia
Pacific at Cushman & Wakefield. “Cities will need to establish
themselves as ‘places’ to attract the highest quality workers and in
turn create the greatest real estate opportunities for occupiers and
investors alike.”
Cushman & Wakefield compared labor force growth and GDP growth of more
than 137 cities worldwide. Cities with high growth in both categories
have the best prospects for strong real estate demand, while slow growth
in both categories indicates a lagging market. Cities with faster growth
in GDP than in the working-age population are “high productivity”
markets that may appeal to investors as they rise up the value
proposition. Those with greater growth in labor than GDP are considered
“low productivity” markets that need to harness that attraction of
talent to boost output. (See table.)
The study concluded that the world’s top-performing cities are located
in South East Asia and India, which bodes well for the economic growth
and strength of real estate markets in these areas. High productivity
cities are located mainly in China. Most cities in Europe and North
America ranked as low productivity or lagging markets for economic and
real estate growth and their trajectories need to be assessed
accordingly. While individual countries and cities have their own
demographic trajectories, the differences are more intergenerational
than international.
“We were surprised that generational behaviors superseded cultural ones.
Gen Y and Gen Z workers, to some extent, have similar workplace
preferences no matter where in the world they live, but the two
generations also differ in many ways,” said Kevin Thorpe, Chief
Economist and Head of Global Research. “For example, workplace strategy
will need to account for an ever-increasing array of requirements to
meet the needs of tomorrow’s professionals. Understanding these
generations’ values, how and where they want to work, and their
interpersonal strengths and weaknesses will lay the foundations of
securing the best talent available.”
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services
firm that delivers exceptional value for real estate occupiers and
owners. Cushman & Wakefield is among the largest real estate services
firms with approximately 51,000 employees in 400 offices and 70
countries. In 2018, the firm had revenue of $8.2 billion across core
services of property, facilities and project management, leasing,
capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com
or follow @CushWake
on Twitter.
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Grace Wilk
Global Corporate Communications
+1 312 470
1848
grace.wilk@cushwake.com
Source: Cushman & Wakefield