Gen Z's Job Market Crisis: Why Entry-Level Roles Are Vanishing and What It Means for Your Career

Gen Z is fighting harder than ever for fair opportunities in a job market that keeps shutting them out.

Sad graduates / iStock

Gen Z is frequently portrayed as an unmotivated generation lacking the drive to pursue traditional career paths. However, the reality looks very different. Younger workers are eager to build meaningful careers, but they are entering a labour market that has shifted dramatically beneath their feet.

With entry-level opportunities tightening and hiring practices evolving, today’s graduates find themselves navigating challenges that older generations did not have to confront.

From the rise of artificial intelligence stepping into beginner roles to the increasing presence of “ghost” job postings, the modern job hunt has become unpredictable. Even education leaders are raising concerns about the growing mismatch between available roles and the number of graduates entering the market.

According to Fortune, this imbalance is placing young people in an increasingly competitive and unstable employment environment.

How competitive has the graduate job market become?

Rob Breare, CEO of Malvern College International, highlighted the strain facing young job seekers during a recent appearance at the Fortune Global Forum. He referenced new data from the Institute of Student Employers (ISE), which shows just how severe the competition has become. In the 2023/2024 cycle, 1.2 million applications were submitted for only 17,000 graduate positions in the UK. Breare described the statistic as shocking, pointing to the enormous pressure this puts on graduates attempting to enter the workforce.

In contrast, the 2021/2022 period saw a very different picture. More than 559,000 applicants were interviewed for graduate roles, and nearly 20,000 were hired. That slightly older segment of Gen Z faced far more available roles and significantly lower competition. Last year’s figures represent the highest number of applications per role since the ISE began tracking the data in 1991.

This surge illustrates the state of the job market: thousands of hopeful candidates applying for a single position, extended job searches stretching into years and graduates repeatedly turned away from roles that were once considered accessible stepping stones.

Are similar challenges emerging in the United States?

The strain is not limited to the UK. The U.S. labour market is showing comparable patterns, with young graduates struggling to find stable employment. As of July, 58% of students who completed college in the previous year were still searching for steady work. This stands in stark contrast to millennials and Gen X graduates, only 25% of whom encountered similar difficulty.

A significant number of job seekers are finding themselves in months-long or even year-long searches, highlighting a widespread lack of early-career opportunities. The trend extends to America’s biggest economic hubs. New York City, traditionally a powerhouse of private-sector employment, added fewer than 1,000 such jobs in the first six months of the year, a steep drop from the pre-pandemic annual average of around 100,000 new roles.

What industries are leaving Gen Z behind?

The tech sector, often viewed as the most aspirational industry for young workers, is also becoming increasingly difficult for Gen Z to enter. Public technology companies have seen the proportion of workers aged 21 to 25 drop sharply since 2023. The figure has fallen from 15% to just 6.8% as of August, signalling a dramatic shift in hiring priorities and opportunities.

For a generation raised to believe that expensive degrees would open doors to high-paying, high-growth career paths, the current landscape is causing many to question the value of traditional education. Universities are now being criticised for failing to adapt their programmes to the rapid rise of artificial intelligence and other emerging technologies.

How are educational institutions responding to AI-driven changes?

AI’s influence on the workplace is reshaping early-career expectations. Many graduate jobs are evolving or disappearing altogether, demanding new skills and new approaches to training. Breare noted that universities are beginning to respond to the fast-paced changes brought about by AI, acknowledging the need to prepare students more effectively for a rapidly shifting economy.

As employers redefine what they expect from entry-level hires, Gen Z is left waiting for institutions and industries to stabilise. They are ready to contribute, determined to build meaningful careers and willing to put in the work. The challenge is finding space in a job market that continues to narrow just as they step into it.