Graduating from college and stepping into the adult world should be a monumental moment in the life of a young graduate, but in 2025, it’s their first step towards months of misery. The Gen Z job crisis is not one of their making but instead a result of the job market that is hostile to these young workers. There is a distinct shortage of entry-level jobs, and to a large degree, this is because AI is disrupting careers and making it harder for workers to step onto the playing field.
Many Gen Z workers are finding themselves unemployed months after graduating, as the white-collar job market is no longer accepting applications. Some Gen Zers are turning to blue-collar work to try and find their footing, but this requires a significant investment in skill and education of a different sort once more. The Gen Z job crisis is escalating in many different ways, creating a barrier in many careers.
The job market is growing increasingly hostile to Gen Z workers, creating barriers where none are needed. (Image: Pexels)
The Gen Z Job Crisis Needs To be Addressed Immediately
Finding the perfect job is a hard task for most, but in 2025, finding any job is a tougher task than it should be. This is particularly difficult for Gen Z freshers, many of whom only have a college degree and little to no experience with the requirements of their roles. Previously, it was possible for graduates to find entry-level roles and build their skills and experiences on the job, but this has changed in recent years.
Gen Zers are often seen as unprofessional, demanding workers lacking the necessary skills to operate in the workplace, but these workers have never received the training required to excel in a corporate environment. Colleges are not necessarily preparing them on workplace etiquette and we’ve suddenly moved away from the relaxed corporate environment that was all the rage a few years ago, to one that is overly formal once more.
Millennials are no longer receiving the promotions they deserve and Gen X workers are not leaving the workforce, causing there to be fewer bottom-tier roles to go around. Companies have also stopped hiring actively, choosing to lay off workers instead. This has caused more workers to stay on at their jobs instead of moving on to other positions and freeing up space for the younger workers. With the lack of funding for research and social service roles, these alternate career paths have also been blocked off. No matter how you look at it, every possible obstacle has been thrown at these Gen Z workers.
There’s a Shortage of Entry-Level Jobs and AI Has a Big Role to Play
The Gen Z job crisis can be blamed on a variety of factors, but one of the most concerning ones is the relationship between entry-level positions and the AI disruption. With the arrival of AI technology, many of the menial tasks within a workplace that were previously handled by inexperienced workers are now being performed by these tools.
Previously, a candidate wanting to build a career in HR could help with some paperwork and base management tasks while they learned to navigate their roles, but we now have the technology to accomplish this. Before, a young tech worker could be tasked with writing some of the basic code at their new jobs but AI can do that too. Where a Gen Z worker could have previously helped, there’s now an AI tool to handle everything.
Employers, already averse to hiring from Gen Z, are resorting to these AI tools instead of trusting the young ones. LinkedIn’s Chief Economic Opportunity Officer, Aneesh Raman, explained that “While the technology sector is feeling the first waves of change, reflecting A.I.’s mass adoption in this field, the erosion of traditional entry-level tasks is expected to play out in fields like finance, travel, food, and professional services, too.” The problem is a pervasive one.
AI-Ready Careers Are Gen Z’s Best Bet
AI is disrupting careers, this is a fact, but it could also be the solution to Gen Z’s job crisis. As digital natives who are experienced with technology and learn its ways more easily than their predecessors, it is possible that becoming AI experts could enhance their employability. The current transition towards AI has been extremely rushed, with organizations uncertain about how to use the tools after the investments have already been made.
Gen Z with job skills that include AI could find themselves best suited to help their employers bridge the gap, making themselves indispensable to the job market. This skill isn’t exclusive to those exclusively in the tech industry either. Whether you want to work in management or advertising, there are ways to understand and utilize AI. In 2025, it isn’t just AI that’s replacing workers—it’s also the workers who best know how to use AI tools.
The Gen Z Job Market Shifts Towards Skills over Qualifications
The entry-level disruption by AI does that mean that entry-level jobs have disappeared entirely. However, workers who want to build their careers will have to start going beyond their college degrees to understand the needs of their industries. Many employers are eliminating the requirement for college degrees for specific roles and the growing popularity of blue-collar work suggests there is an active shift away from prioritizing college as the best path towards building a career.
Before Gen Zers get to finding jobs, they will have to explore alternate ways of showcasing their skills better and presenting themselves as candidates who bring some expertise and perspective to the table. The shift in favor of skill-based hiring is not a bad thing, but it’s important to start showcasing your abilities in as many ways as possible.
It’s Time to Build Your Professional Identity Early On
The entrepreneurial spirit has always been one of the best qualities among Gen Z and this is relevant to finding employment in 2025. Many artists have found sponsorships and brand deals not by organizing gallery shows but by making their niche styles appealing to brands on social media. Others have used their experience with technology to show companies how they will be able to help the business, proving themselves to be worthwhile investments.
Admittedly, finding an entry-level job should not come with so many tests and expectations, especially considering the low pay these positions offer, but that is the nature of the job market right now. As bleak as the prospects appear to be, it is up to Gen Z to look out for themselves because employers are no longer prioritizing the growth of their employees.
Gen Zers have to actively create career paths that don’t currently exist and put themselves as ambassadors of these roles. Despite the many uncertainties of the modern world, there is work to be found for those who understand their own strengths and weaknesses best and then build on the skills they currently possess.
Subscribe to The HR Digest for more insights on how the landscape of work and employment is evolving in 2025.