Gen Z: The Untapped Powerhouse Reshaping the Future Workforce

The Entry-Level Crisis and the Talent We Can’t Afford to Lose

Unemployment among recent college graduates reached 6.6 percent in May—a four-year high—dampening spirits after the celebrations of their hard-earned degrees. The downturn has disproportionately impacted younger workers, with many struggling to secure their first professional roles. We are grappling with the steepest unemployment rate for recent college graduates in the U.S. in more than a decade. This is more than a labor market statistic. It’s a challenge to long-term competitiveness. Allowing this trend to continue risks draining the workforce of the energy, optimism and innovation this generation could deliver. We can’t let this break the spirit of our young people.

Surveys point to two major culprits limiting opportunities at the entry level: persistent economic pressures and the rapid rise of A.I. tools. This is one of the most shortsighted mistakes that businesses are making right now. Rather than viewing young people as a cost due to training needs or lack of experience, employers should shift focus to what is gained from flexibility, adaptability and tech fluency that young people bring to the table. Gen Z should be regarded as a critical cohort in today’s workforce.

Flexibility for a changing workforce

The World Economic Forum’s Future of Jobs 2025 report forecasts that while A.I. will displace 9 million jobs in the next five years, 11 million new jobs will also emerge, many in roles that don’t yet exist. Many of these roles will undoubtedly be pioneered by the youngest professionals as they find their footing in the workforce. One thing is clear: the nature of all jobs is likely to change as A.I. penetrates the workplace. It’s often said that hiring should never focus on specific skills for a particular role, as those skills will inevitably evolve. Young professionals, with their agility, flexibility and commitment to continuous learning, are particularly well-positioned to adapt, making them uniquely suited to thrive in a shifting skills landscape.

The true natives of the A.I. era

Gen Z is not just adapting to A.I.; they’re growing up with it. As digital natives and significant stakeholders of the A.I. revolution, they are essential in testing, experimenting and institutionalizing how we use A.I. During the siloed era of the pandemic, many young people honed advanced technology skills in virtual environments. It is often the youngest person in the room who is using new tools, ones that may not show up on a resume or be used in traditional applications but are highly relevant in today’s hybrid and digital-first workforce.

PwC’s latest Global Workforce Hopes and Fears Survey indicated that only 20 percent of senior executives and 17 percent of managers use generative A.I. daily, compared with 82 percent of young leaders aged between 22 and 39, according to research from Google Workspace and The Harris Poll. As active adopters, young employees can be leveraged as first movers, in-house A.I. specialists and reverse mentors who can guide more experienced colleagues through new technologies. That requires more than token inclusion in projects. To harness the potential of A.I. in the workplace, organizations must empower young people to lead conversations, fostering a more inclusive, collaborative and future-ready work.

Fresh perspectives, energy and optimism

The workplace is changing faster than ever, and the skills employers demand are evolving 66 percent more rapidly in A.I.-exposed roles. In such a fast-changing environment, infusing teams with fresh perspectives and optimism is not just beneficial—it’s essential. When we recognize Gen Z professionals as digital natives, teachers and current leaders, we unlock new opportunities for creativity, adaptability and fresh thinking. Young employees bring an eagerness to experiment, a hunger for learning and a resilience under uncertainty. Today’s technological landscape requires a new way of thinking for how we can upskill and mentor young employees to make a real impact in the workforce, even if it means departing from traditional entry-level career paths.

A generational imperative

Despite these seismic shifts in the nature of work and the discouraging statistics about the entry-level labor market, the potential contributions of young professionals are vast. Half of the world’s population is under 30 years old. They are the generation poised to address urgent global challenges, from climate change to societal inequality. The World Economic Forum’s 2025 Global Shapers Impact Report highlights how youth-led projects are already driving meaningful change globally.

Young people are the key to a better future, but they’re not going to reach their potential unless we invest in them. Business leaders have a responsibility—and an opportunity—to mentor young professionals, and offer them critical career opportunities. This investment is a two-way street: seasoned leaders share industry wisdom, while younger colleagues offer insights into emerging technologies and evolving cultural trends. This exchange is how we future-proof our organizations and ensure that innovation, empathy and adaptability remain at the heart of business.