Generation Y
What Is Generation Y?
Generation Y, also known as Millennials, are a demographic cohort that falls between Generation X and Generation Z. People in this age group were born throughout the 1980s through to the mid-1990s and are most often the children of Baby Boomers.
Generation Y currently comprises the largest labor force share (36%) in the US.
Generation Y Age Range: What Age Are Generation Y?
At the end of 2025, the Generation Y age range will be between 29 to 44.
When Does Generation Y Start?
Generation Y were born between the years 1981 and 1996.
Generational cohorts are defined by a specific range of birth years. Researchers create these groups based on historical, economic, and social factors. A study by the Population Reference Bureau considers whether they should be known as the “unluckiest generation” due to the onslaught of historical events and turmoil they have lived through.
Is Gen Y the Same as Millennials?
Yes. Gen Y is the same as Millennials. Gen Y and Millennials can be used interchangeably to describe people born between 1980 and 1996, though the specific date range can vary depending on location. These employees are accustomed to frequent feedback and may respond well to online recognition systems.
Why Did Gen Y Change to Millennials?
The group born after Generation X was initially coined Gen Y because it was the next letter progression in the current naming schema. However, this demographic is more commonly called Millennials, as the oldest members became adults at the turn of the Millennium.
While Millennials and Gen Y are still used to describe this age cohort, the Millennials label has gained more popularity and recognition in media, gradually replacing Gen Y within the US. However, in other parts of the world Gen Y may be used more frequently.
What Are the Generation Y Characteristics?
Like all generations, Gen Y has unique characteristics that need to be managed accordingly. Millennials are considered one of the most educated generations. Millennial women, in particular, are 44% more likely to complete a college education. Having come of age with the internet and smartphones, Gen Y are pretty tech-savvy. This cohort was the first to grow up with widespread access to the Internet, smartphones, and other digital technologies.
Generation Y was significantly impacted by the Great Recession of 2008, so their financial independence has had some unique challenges. Their starting wage earnings are lower than those of some previous generations (when adjusted for inflation), making Gen Y more likely to live with their parents for longer, rent, and delay major life events than previous generations.
What Do Generation Y Want from Their Workplace?
Companies need to work harder to engage their younger workers. According to Gallup, this cohort is more likely to be actively looking for new job openings elsewhere than other generations.
In order to increase job satisfaction and retention among Millennials, employers need to:
- Cultivate and encourage work-life balance: According to Deloitte Insights, 31% of Millennials chose their organization due to it offering a good work-life balance. This generation is more likely to prioritize a workplace that can offer remote working, flexible working hours, and even unlimited PTO policies.
- Encourage collaboration. As a social generation, Gen Y enjoys collaborating and brainstorming. Allow your employees a chance to work together through team-building activities to keep this age demographic happy and retain talent.
- Prioritize DEI: Gen Y value inclusivity in the workplace and are likely to support issues such as the rights of LGBTQ+ people, gender equality, and racial diversity.
- Be environmentally and socially responsible: Deloitte Insights revealed that 34% of Generation Y have turned down employers that don’t align with their values. Climate change is a top concern for Millennials—54% research a company’s environmental impact before accepting a job offer.