More Bad News for Gen Z Grads: The Harsh Reality of Today’s Job Market

Gen Z graduates are entering adulthood amid an especially rough economy. What once seemed like a payoff for hard work—higher education, a degree, a promising future—now feels more uncertain than ever.

One of the biggest shocks is the increasing irrelevance of traditional degrees. Nearly half of Gen Z job seekers say their college diplomas are losing value thanks to the rise of artificial intelligence and automation. Many employers are shifting tactics—dropping degree requirements, relying on skills-based hiring, and using AI resume screening tools that filter out thousands of applicants before a human ever glances at a resume. 

Also worrying is how hard it is to get entry-level jobs. Positions once considered stepping stones are vanishing or being automated, leaving new grads without the opportunity to learn on the job. Job listings are down, competition is up, and many are applying to hundreds of roles just to get a single interview.

Then there’s the financial burden. Student debt looms large and often outweighs the returns. For some, repaying loans, covering high cost of living, housing, and basic expenses leaves little room to build a stable, independent life. Meanwhile, salary expectations are being reset. Many grads expected far more than what entry-level salaries are delivering. The combination of these factors—degree devaluation, AI‑driven job displacement, decreased entry roles, mounting debt, and disappointing offers—has left many Gen Zers feeling disillusioned. What was supposed to be the start of a promising journey is turning into a gauntlet. If current trends continue, the generation may need to rethink education, career paths, and even what success looks like in the 21st‑century workforce.

 

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