The Struggles of Gen Z in the Job Market: A Deep Dive

Recent reports highlight a significant decline in entry-level job opportunities for recent graduates, particularly affecting Generation Z. Federal Reserve Chair Jerome Powell noted that entry-level job listings have decreased by 35% since 2023, with only 30% of this year's graduates securing full-time positions related to their degrees. The Cengage Group's 2025 Employability Report indicates that 75% of employers plan to maintain or reduce the number of entry-level roles, while 71% now require a two- or four-year degree for these positions, despite less than half viewing a degree as a strong indicator of job readiness.

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The rise of artificial intelligence (AI) has further complicated the job landscape. Harvard Business School professor Joe Fuller stated that AI is eliminating routine entry-level jobs, while LinkedIn's Aneesh Raman remarked that candidates are now expected to possess AI fluency and relevant work products before even starting their careers. This shift has led to a situation where new graduates are competing not only against their peers but also against experienced professionals who have been laid off from higher-level positions.

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Many young workers are resorting to multiple jobs to make ends meet. In the UK, 42% of Gen Z workers reported juggling multiple roles as a financial survival strategy amid rising living costs. This trend is echoed in Canada, where youth unemployment reached 14.5%, the highest in over a decade, leading many students to settle for jobs unrelated to their fields of study. The Canadian Centre for Policy Alternatives reported that inflated qualifications for entry-level jobs and a preference for internal hires have created barriers for young job seekers.

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Critics argue that the current job market is fundamentally broken. Gregory J. Morris, CEO of the New York City Employment and Training Coalition, emphasized that the solution is not to tell young people to work harder, as they already are, but to create a system that supports their efforts. Many parents share this sentiment, with over 53% expressing concern that AI will eliminate entry-level jobs before their children graduate.

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Despite the bleak outlook, career experts suggest that Gen Z can still find success by adopting strategic approaches. These include leveraging non-traditional entry points like contract work, focusing on immediate-value skills that meet current employer demands, and enhancing visibility through platforms like LinkedIn. Harleny Vasquez, a Gen Z career coach, encourages young job seekers to optimize their online profiles to increase their chances of being noticed by recruiters.

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The challenges facing Generation Z in the job market reflect deeper structural issues that require urgent attention from employers and policymakers. Without significant changes to hiring practices and support systems, there is a risk of creating a lost generation of workers who are unable to gain the experience necessary for long-term career success. As the landscape continues to evolve, it is crucial to foster an environment where young people can thrive and contribute meaningfully to the economy.

Hungry customers, no suppliers: Canada’s youth face the bleakest job market in over a decade