Each generation faces headwinds as they enter the workforce—and naturally, each is tempted to think the challenges they face are the hardest ever. But there may be a grain of truth to Gen Z’s sense of getting a raw deal in the current employment market.

Gen Z’s unemployment rate is approximately 8.3%—double the national average of 4.2%. On top of that, only 30% of 2025’s college graduates have landed full-time positions.

AI is one factor reshaping the employment landscape for this generation, largely due to its ability to perform the routine, well-defined functions that have traditionally been the domain of entry-level workers. Entry-level roles are shrinking—maybe not across the board or as quickly as some doomsayers have predicted, but the data is growing.

• Among HR respondents concerned about AI's impact on early-career positions, 76% believe it will significantly reduce hiring
• 68% of Gen Zers say AI has made the job search more competitive
• 51% of Gen Z workers fear AI’s impact on their job security, the highest of any generation
• Only 36% of Gen Z believe they have skills that are uniquely human and safe from AI, compared to 42% of Millennials, 44% of Gen X, and 23% of Boomers
• 40% of Gen Z want to prove their value during the hiring process through skills tests or job simulations, compared to Millennials (33%), Gen X (26%) and Boomers (27%)

In this fast-shifting landscape, younger workers are trying to find their way. But it’s an uphill battle.

The new catch-22

The current erasure of entry-level roles in favor of AI is creating a catch-22, or unsolvable dilemma, for Gen Z. Instead of the previous paradox of “entry-level” jobs that somehow still required 2–3 years of experience, now it’s companies eliminating the entry-level training ground, yet still wanting to hire experienced humans for higher-level roles.

If the lion’s share of entry-level jobs become absorbed by AI, where will younger workers gain the work experience to become qualified for higher positions? AI has become a hidden tripwire for workforce development.

I remember how much I learned at my first full-time job. College was a great experience, but my most practical lessons were learned alongside the seasoned professionals who mentored me.

Organizations that completely decimate their entry-level workforce in favor of cheaper AI may discover, down the road, that the cost in human capital is greater than they anticipated. Without the opportunity to gain valuable work experience at the entry level, soon the pool of qualified human candidates will shrink even further.

This is not how we build sustainable talent pipelines. In three to five years, we’ll see another skills gap emerge—this time, a self-inflicted one.

Gen Z hiring challenges

Gen Z is already a generation feeling challenged in the hiring arena. Coming of age during the pandemic shutdowns often meant working from home during those early formative years. Now, many younger workers who missed out on meaningful, in-person interactions display a lack of workplace etiquette that older generations can’t understand.

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