🚀 Add to Chrome – It’s Free - YouTube Summarizer
Category: Job Market
Tags: AIeconomyGen Zinflationunemployment
Entities: AIFederal ReserveGallupGartnerGeneration ZGlassdoorLinkedInNational Association of Colleges and EmployersNational Student Clearing HousePew Research CenterTrump administrationUS Chamber of Commerce
00:00
Genzers are on the brink of professional extinction. In June, the unemployment rate among recent graduates was 8.6%.
Far above the general unemployment rate. >> Gen Z is facing the worst unemployment rate in decades.
>> These university grads will have to deal with one of the worst job markets in
00:16
years. And the young people of Generation Z are experiencing it firsthand.
>> I must have started applying for jobs in April. And I've know I've sent 85 job applications since.
It's been really difficult. This has sparked a widespread feeling of being disqualified.
00:32
>> It made me feel like I was unqualified um for any job in journalism, like maybe I wasn't good enough. >> The experience has definitely been discouraging >> and the data supports it.
Compared with their parents, today's youth face a labor market much more complex than 40 years ago.
00:47
>> Graduates between the ages of 15 and 24 are facing the highest unemployment rate this country has seen since the mid90s. This has generalized the perception of a lack of job opportunities, especially among the youngest and most inexperienced.
So why is it so difficult for genzers to get a job?
01:05
The difficulties faced by generation Z in securing stable employment stem from a mix of economic, business, and political factors. One of the most visible is the paradox of entry-level jobs.
Although presented as opportunities for recent graduates, most require prior experience. According to
01:22
LinkedIn data, more than 40% of vacancies labeled as entry level in 2025 require at least 2 years of experience, while 22% demand 3 years or more. This requirement contradicts the purpose of such positions and places young people
01:38
in a vicious circle. They cannot get a job because they lack experience and they cannot gain experience because they cannot get a job.
According to the National Association of Colleges and Employers, nearly 55% of senior students in 2024 anticipated major difficulties
01:54
in making a quick transition into the labor market due to these growing demands. But the arrival of AI has made this much worse in the tech sector.
Companies are eliminating formative entry-level jobs. The work handed over to artificial intelligence.
Tech companies are leading the way.
02:11
>> In addition, starting salaries have not kept pace with the cost of living. The average starting salary for a recent graduate in 2025 is around $59,000, only about 2% higher than the previous year, which is far below the cumulative rise in basic housing, transportation,
02:27
and food expenses. According to recent surveys, more than 68% of Generation Z youth believe they will not achieve financial independence until after age 28 or 30, largely due to this economic pressure.
Companies, for their part, show a clear tendency to retain current
02:44
employees instead of expanding their workforces. In times of uncertainty, the priority is stability.
A 2025 Gartner survey revealed that 70% of companies have chosen to freeze or slow down new hiring, focusing on retaining those already on staff. Much of this caution
03:01
is related to doubts about tariff policy. >> Trade war is officially on with the retaliation by China.
All of that back and forth over trade and tariffs hasn't exactly been great for the economy. >> The Trump administration reintroduced tariffs on imports from China and has threatened to impose new ones on
03:17
European goods, generating fears of rising costs that could hurt profitability. The US Chamber of Commerce points out that especially for small and medium-sized businesses, hiring is avoided until the effects of these changes on supply chains are clear.
Inflation is another factor
03:33
complicating the outlook. After reaching 9.1% in 2022, the highest in four decades, it has dropped to 3.2% in 2025, but the cumulative effects are still felt.
The rise in costs also has led many companies to cut budgets and slow
03:49
hiring. >> And then following that, the interest rate hikes probably also slowed overall economic conditions with uh impacts on hiring appetite.
According to the conference board, only 29% of employers plan to increase hiring of recent graduates in 2025 compared with 41% in
04:08
2021. The result is a reduction in opportunities precisely in the segment where recent graduates most need to gain access.
The impact of these trends is not limited to the present, but has long-term repercussions. The Federal Reserve has warned of the risk of economic scarring, meaning the lasting
04:24
negative effect suffered by those entering the labor market during crisis. During the 2008 recession, graduates entering the market saw their earnings reduced by as much as 9% for more than a decade.
Today, a similar phenomenon threatens to repeat itself. According to
04:40
the Pew Research Center, nearly half of Generation Z workers believe they will not be able to retire at a traditional age due to their late entry into stable jobs. >> With high inflation and a suddenly shaky banking system, some Americans are cashing out their retirement funds.
>> The unemployment rate in the 20 to 24
04:57
age group stands at 8.6% compared with 4.3% for the overall workforce, clearly reflecting the disadvantage. The combination of inflation, excessive experience requirements, and hiring freezes creates an adverse scenario for those just
05:12
starting their careers. The number of vacancies decreases, entry filters rise, and the cost of living remains high.
The National Student Clearing House reports that in 2025, college enrollment fell nearly 5% compared with 2020, partly because students increasingly question
05:28
whether a degree guarantees a job. I was told by a lot of people that I was going to get a job right out of college and then all of a sudden there's no jobs.
>> A recent survey revealed that more than 60% of recent graduates consider themselves undermployed working in
05:44
positions that do not require a college degree. Added to this is the burden of student debt, averaging $33,000 per borrower.
While the resumption of payments in 2023 has increased the urgency of finding stable income. However, that income remains elusive.
06:00
All this also affects young people's mental health and motivation. Gallup surveys in 2025 show that only 29% of Generation Z workers feel engaged in their jobs, while 46% say they are unmotivated or pessimistic about their professional future.
Anxiety about job
06:16
security is evident. More than 60% believe they will have to string together multiple temporary or gig economy jobs before accessing a stable position.
For the last 3 years, millions of Americans have changed their work life. For many, that meant a remote or hybrid job.
And for some, it meant
06:33
throwing out the 9 to5 altogether. In addition, competition for available positions is increasingly intense.
Companies receive a significantly higher volume of applications than a decade ago, meaning that even qualified candidates face long waits and strict selection processes. A 2025 glassd door
06:49
study indicates that the average time to receive a response after applying for an entry-level job is 45 days compared to 21 days in 2015. This delay not only generates frustration among young people but also increases psychological pressure forcing them to apply to
07:06
multiple positions simultaneously and often accept temporary or lowpaying jobs while waiting for a stable opportunity. It's >> literally just rejection, rejection, rejection and it's always like the automated messages.
I've only gotten like one where it's like, oh, you can do like a video interview, but that's like
07:21
the first stage out of like seven others. So, no luck.
>> At the same time, internship opportunities once the bridge to experience have decreased by 12% between 2022 and 2024. Thus, the chances of meeting employer requirements are reduced even further.
Taken together,
07:38
these factors explain why Generation Z faces so many barriers to entering the labor market in 2025. Entry-level jobs are no longer true gateways.
Starting salaries fail to keep up with the cost of living, and companies are reluctant to expand their teams due to the
07:53
uncertainty of the economic and political context. [Music]