Why the Job Market Stopped Hiring Gen-Z
- Aaron Garcia
- 18 hours ago
- 4 min read
Overview
Members of Gen Z looking to make their way into entry level jobs have met a brick wall including those with college degrees. In an article published by Axios regarding the economic crisis facing the youth of America, data from the bureau of labor statistics shows the unemployment rates amongst workers ages 16-24 have risen and reached over 10% in September of 2025, the worst it's been since 2016 when excluding the covid 19 pandemic (Brown C, 2025, Sept. 10).
This trend highlights a growing struggle for young workers attempting to find stable employment in today's labor market. I will now explain how changes in job availability, barriers in the hiring process, and economic pressures have made it increasingly difficult for young Americans to enter the workforce.
Artificial Intelligence and Outsourcing Domestic Jobs Limit Job Availability
The first point to mention, changes in job availability have reduced work opportunities for Gen Z attempting to get a foot in the door in today's labor market. There are two important factors for this change, the first of which is the rise of artificial intelligence. In an article published by Montie E., (2025, Nov. 26) in the Observer, it's stated, “A study from Hult International Business School found that 89 percent of employers avoid hiring new college graduates, and 39 percent would prefer to use A.I. over hiring a Gen Z worker.” This reflects a concerning shift in the mindset in how employers view entry level hiring. It seems not even a college degree is enough for the majority of employers to want to hire a Gen Z employee over filling that job with artificial intelligence.
Unfortunately, A.I is not the only reason young Americans are struggling to find employment. Not only are white collar entry level jobs being automated away, the remaining positions available are instead being filled by foreign workers on H1B visas and student visas. According to Miller A., (2025, Oct. 27), published in Fox News, CEO of Skillstorm, Justin Vianello says, “So as a college grad, you're fighting this three-headed monster. You're graduating with student debt, you've got H-1B visa holders and OPT visa holders who have the ability to take your job and cost an employer significantly less, and then you're competing with the third one, which is the ability of an employer to simply offshore that work.” This further reflects how in the modern day labor market, young Americans are being forced into a hyper competitive environment simply to find their first real job experience. It makes sense that employers would choose to hire employees on foreign work/student visas to significantly reduce labor costs and achieve the same amount of productivity than if they had simply chosen to hire a gen Z worker. Now that it's understood how and why employers are choosing to automate or offshore work that limits the job opportunities available for gen Z, let's talk about the increasingly difficult barriers to entry when it comes to merely applying for jobs.
Needing Experience to Get Experience & Ghost Job Listings
In order to find a job in the modern day, people must search the internet for job listings. One of the most common ways for people, particularly gen Z, to search for employment is through applications meant for finding a variety of job listings to apply for with one accessible resume and digital profile, such as LinkedIn. An article published in Forbes Business Magazine notes that an analysis of 2k entry level job listings on LinkedIn require years of relevant experience (Batchelder C., 2026, Jan 5). In addition to rising concerns regarding the use of ai to fulfill entry level job roles, new work force entrants must now worry about passing a basic job screening that marks their resumes as “underqualified.” In the same article, it's stated that a survey of over 900 HR professionals has found that it's become increasingly common for employers to post “ghost job” listings, with over 45% of employers stating they have posted these listings regularly without a real intent to hire any applicants. Gen Z is having to face the reality of needing unrealistic experience to be able to garner experience; moreover young workers actively being forced to apply for jobs online are greeted with countless listings that will inevitably be a complete waste of time in their search for employment.
Economic Factors & the “Low-Fire, Low-Hire” Labor Market
The current state of the economy in America is not doing any favors for anyone, especially Gen Z. Rampant inflation is seriously affecting the job market with economic fear being a major concern of many, currently employed workers are starting to value job security over job mobilization. According to an article written by Anna Cole & Michael McCracken (2026, March 5) , published in the Federal St. Louis Reserve Bank economy blog, “In the current "low-fire, low-hire" economy, workers are increasingly staying put in their jobs, breaking the post- COVID-19 pandemic trend of frequent job- switching. In August and October 2025, for example, the quits rate dropped to a low of 1.9%.”
So what does this mean for young Americans currently searching for an entry level employment role? Well it means that the current mindset of the average employer is not interested in spending thinning resources to train a young worker for entry level positions. Instead, already experienced employees are taking on work that they are vastly overqualified for. This leaves a generation of America's youth scrounging for a way to simply get their foot in the door.
Conclusion
It is these factors that have made America's youngest working generation face difficulty when it comes to finding employment. The rising use of artificial intelligence to fulfill entry level roles, the increasingly common use of foreign workers over young Americans with college degrees, and the current “low hire, low fire” job market are the main reasons why Gen Z is facing difficulty entering the work force.
Sources:
Batchelder C., (2026, Jan. 5). “The Entry-Level Hiring Crisis Is Getting Worse In 2026” Published on Forbes
Miller A., (2025, Oct. 27) “'3 headed monster': Expert reveals how H-1B visa program is crushing American college graduates” Published on Fox News
Brown C., (2025, September 10). “Young America Faces An Economic Crisis” Published on Axios
Montie E., (2025, November 26). “A.I. Leaders Warn Entry-Level White-Collar Jobs Are Being Automated Away” Published on The Observer
Cole A. & McCracken M., (2026, March 5) “The Effects of a “Low-Fire, Low-Hire” Economy on Workers” Published on St. Louis Federal Reserve Blog
Comments