Gen Z struggles with employment

Gen Z's employment struggles intensify, impacting youth-oriented sectors and the broader economy.

Gen Z's employment prospects have significantly deteriorated, with record numbers fearing long-term unemployment. Teen hiring hit an 80-year low in 2025, and is expected to decline further in 2026. Summer job opportunities, traditionally a rite of passage, have dwindled, with high schoolers facing intense competition for entry-level positions. Young Americans are struggling to build financial independence, with over 80% rating the economy negatively. Remote work, on the rise since the pandemic, has exacerbated youth unemployment, particularly among college graduates.

The youth jobs crisis is impacting sectors reliant on young workers, such as retail, hospitality, and services. Employers are reluctant to hire young people, citing skills gaps and high training costs. The UK's 'Neets' figure has risen to over 1 million, with 13.5% of young people not in education, employment, or training. Companies targeting Gen Z, like fast-fashion retailers and youth-oriented entertainment providers, may face labor shortages and higher wage pressures.

Upcoming catalysts to watch include the UK's Spring Statement on March 15, which could provide fiscal support for youth employment initiatives. In the U.S., the April jobs report on May 5 will offer insights into teen labor force participation. Additionally, the Federal Reserve's interest rate decision on May 3 could influence hiring trends, as lower rates typically stimulate employment.