Despite being the most educated generation in history, Gen Z is grappling with rising rates of unemployment and underemployment. Currently, the Gen Z unemployment rate is around 8.2%, which is more than double the national average of 3.5%.
As a Gen-zer myself, I’ve seen it up close. Friends with graduate degrees are getting “marketing” job offers that involve little more than handing out flyers. Others are losing out on internships to applicants with resumes stacked by years of experience. Many have moved back in with their families, working part-time jobs they thought they’d left behind.
The message we’re getting is loud and clear: you can do everything “right”; earn the degree, build the resume, perfect the soft skills; but even then, it might not be enough.
Gen Z unemployment isn’t a temporary glitch. It’s a sign that the systems meant to support early-career talent are falling short, right when we need them the most.
What's Behind Gen Z's Unemployment Struggles?
- The job board echo chamber: Gen Z job seekers are up against phantom listings, algorithms that bury resumes, and applicant pools in the hundreds. These new normals make the application process feel a lot like shouting into the void.
- The Experience Paradox: Most employers look for applicants with experience, which often results in a frustrating catch-22 for unemployed Gen Z: You can get experience without already having it.
- Economic Uncertainty & Industry Disruption: Factors like the pandemic, inflation, automation, and a fragile economy have reshaped entire industries, creating a volatile job market and few guarantees for people simply looking for a foot in the door.
- A Widening Cultural Divide: A growing divide exists between employers and Gen Z workers: Gen Z prioritizes flexibility and value alignment, while many employers cling to traditional expectations around loyalty, structure, and office culture.
Halt the Soapbox. Why Does This Matter?
The impact isn’t just professional, it’s deeply personal. Gen-Z unemployment delays key life milestones like moving out, buying a car, or saving for a home. This snowballs into their ability to plan for the future. Setting up high yield bank accounts, 401ks, and even health insurance take a back seat.
Here's What We Can Do
-
- For Organizations: Support Gen Z by creating opportunities for early-career talent and investing in their future. Offering meaningful benefits paired with financial education empowers them to make the most of those resources, building a strong foundation for long-term success and well-being.
- For Job Seekers: Have hope, there’s an organization out there that needs your unique skill set, you just haven't found them yet. As you search prioritize building financial stability to safeguard yourself against periods of uncertainty.
- For Everyone: Empowerment starts with education. Financial literacy is a powerful foundation for navigating life’s uncertainties. When you understand how to manage their money, you’re better equipped to face career disruptions and make informed decisions.
Final Thoughts
Gen Z unemployment is more than a statistic—it’s a societal signal. If we want to build a stronger future for all, we need to equip our communities with both opportunity and education.
Zogo is built for everyone - at every stage of life. To learn more about Zogo, please request a demo.