Why Gen Y is Unprepared to Survive Recession

The current economic crisis may be the best test yet of Generation Y's ability to survive. After all, this generation, which has been coddled by parents and educators, isn't known for its coping skills.

Workplace and generational experts agree that the looming recession could come as a complete shock to the entitled members of Generation Y, who've never before experienced an economic downturn as working professionals and who've had their every whim indulged since childhood. This is not a generation that's been prepared to endure hardship, let alone corporations in cost-cutting mode.

While some "millenials" experts think Gen Y can handle the downturn, they also think it will present millenials with a significant learning experience.

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The current economic crisis may be the best test yet of Generation Y's ability to survive. After all, this generation, which has been coddled by parents and educators, isn't known for its coping skills.

Workplace and generational experts agree that the looming recession could come as a complete shock to the entitled members of Generation Y, who've never before experienced an economic downturn as working professionals and who've had their every whim indulged since childhood. This is not a generation that's been prepared to endure hardship, let alone corporations in cost-cutting mode.

While some "millenials" experts think Gen Y can handle the downturn, they also think it will present millenials with a significant learning experience.

"For the very first time in their life, they're not being told they're the best person, and for lots of these young folks, it's a shattering experience," says Mary Crane, a business consultant who also works with graduating MBA students. "I think it will be an eye- opening experience for them," she adds of the economic downturn.

Rosemary Haefner, CareerBuilder's VP of human resources, agrees with Crane that a recession may be a rude awakening for Generation Y professionals, who are known for demanding cutting edge technology and lots of flexibility from their employers.

"That Generation is expecting things to be delivered to them on a silver platter: They expect to be promoted in a year. They expect to have state of the art technology. Their attitude is, 'If you guys aren't going to give it to me, I'll work someplace else'," says Haefner. "If more organizations are going to have a hard time delivering on those expectations because of costs, Gen Y workers are potentially going to be disappointed."

Here are five reasons why the economic crisis may present Generation Y professionals with the biggest shock of their working lives.

1. This is their first recession.

Generation Y has never been through an economic downturn as working adults. When they first started entering the workforce, the economy was stronger, and millenials graduating with MBA degrees were being offered big signing bonuses, says Lisa Orrell, a generational relations expert and author of Millenials Incorporated. "Generation Y has taken job security for granted," she says.

Now that the economy is in a tailspin, Generation Y professionals don't know what to expect or how to get through difficult times in a company. Unlike Baby Boomers and Generation X, Gen Y lacks the benefit of hindsight.

"This is the first time they're going through something that's a little bit less positive or where they might have to work harder," says Haefner.

2. They don't handle uncertainty well.

During an economic downturn, rumors about layoffs, mergers, acquisitions and plant closings spread through businesses like oil spills--fast, thick and toxic. They create uncertainty and depress morale. And if there's one thing Generation Y can't tolerate, says Haefner, it's uncertainty--because they're not used to it, having grown up with immediate gratification and instant access to information. "Ambiguity drives them crazy," she says. "They want an answer."