A report by the Peter G Peterson Foundation released this week warns that the United States’ $39 trillion national debt will lead to fewer jobs and lower wages for Generation Z by 2035. The foundation’s analysis, supported by EY’s Quantitative Economics and Statistics practice, projects a loss of 1.2 million jobs if the current fiscal path continues, highlighting significant economic challenges ahead for younger workers.
The report explains that rising interest costs on the national debt crowd out public investment and deter private sector business investment, slowing economic growth and negatively impacting the labor market. Citadel CEO Ken Griffin has previously criticized the government’s deficit spending, calling a 6.4% deficit irresponsible when unemployment is low. The report’s data analysis was conducted in spring 2026 by EY QUEST, which quantified the job losses tied to the debt trajectory.
This forecast underscores concerns about the long-term economic burden placed on younger generations by sustained high debt levels. The projected reduction in jobs and wages for Gen Z contrasts with a scenario where lawmakers stabilize the debt, which would preserve more robust employment opportunities. The findings add to ongoing debates about fiscal policy and its impact on economic growth and labor market conditions in the United States.
The Peter G Peterson Foundation’s report was published on July 13, 2026, and its findings are based on EY QUEST’s spring 2026 economic modeling, providing a data-driven perspective on the consequences of the national debt for future workforce conditions.