The July 7th episode of WSJ’s The Journal Podcast spotlighted a growing trend in corporate hiring: companies are downsizing with the help of AI. Once a marker of progress, headcount growth is no longer the priority. Instead, these employers are using AI to assess which roles and projects can be automated or cut entirely.
The first roles on the chopping block? Entry-level positions that serve as a critical launchpad for graduates beginning their careers.
With entry-level opportunities stagnating or disappearing across multiple sectors, Gen Z is already feeling the impact. Unemployment among young workers is on the rise, with a recent survey finding that 58% of new graduates are still searching for full-time employment.
Here’s the hard truth: The corporate world is prioritizing today’s bottom line for the sake of tomorrow’s workforce.
Enter: Gig-Culture
The mood among Gen Z job seekers is a mix of frustration and resilience. While traditional career paths feel increasingly out of reach, young professionals aren’t giving up. Instead, many are adapting by building new skills and embracing alternative income streams.
Enter gig-culture.
From freelancing to food delivery, reselling to content creation, Gen Z is redefining what it means to make a living. Combatting underemployment and supplementing their main income source.
Take, for example, the Dallas Cowboys Cheerleaders (yes, we’re stans!). Despite cheering for the Dallas Cowboys, the world’s most valuable sports team (and who, by the way, made $1.2B in revenue in 2024), the DC Cheerleaders only made $15 an hour. Many juggled multiple side gigs to make ends meet.
It took a Netflix documentary and national outcry to spark change, eventually leading to a 400% pay increase. But this win highlights a larger issue: if such high-profile workers can be undervalued for so long, how much more vulnerable are young professionals navigating the job market without the spotlight and the pressure of AI creep?
The Hidden Cost of Cutting Our Workforce
On paper, minimizing overhead seems like a winning formula for any profit chasing organization. However, the long term consequences to the workforce aren’t yet known.
Entry-level positions are not only valuable for recent graduates, but are also crucial for companies seeking to attract and develop future talent. By gutting roles at the base of the corporate pyramid, organizations risk starving their own talent pipelines, leading to a potential shortage of qualified, experienced mid-level employees in the coming years.
Relying solely on poaching mid-level talent from competitors isn’t a sustainable strategy. If no one is investing in the next generation, the entire system starts to break down.
Eventually, businesses may find themselves scrambling to rebuild the very pipelines they dismantled.
In the meantime, leaner teams mean heavier workloads, fewer mentorship opportunities, and stalled career progression. Workers who do land jobs may feel stuck, reluctant to leave a stable position in an increasingly cutthroat job market.
Financial Wellness Starts With Opportunity
Protecting entry-level roles isn’t just about jumpstarting careers, it’s about protecting financial futures.
When young adults can’t access stable work, they’re forced to hit pause on major life milestones: buying a home, paying off debt, building credit, saving for the future. These aren’t just personal goals, they’re the building blocks of long-term financial wellness.
That’s why Zogo believes in equipping Gen Z with the tools they need to take control of their financial path, even in a shifting job market. Our bite-sized skills like How to Get a Job and Ace a Job Interview are designed to meet learners where they are, helping them build confidence, navigate hiring challenges, and take that first and crucial step toward financial independence. To start learning, click the links above to explore career building skills in the app!
