Gen Z Faces Tough Job Market as Unemployment Rises, AI Disrupts Hiring

Federal Reserve Chair Jerome Powell acknowledged the growing challenges for Generation Z in securing employment, citing a tightening labor market and structural shifts in hiring practices. The August jobs report underscores these concerns, with overall unemployment climbing to 4.3% and Black unemployment exceeding 7%.

Compounding the issue, artificial intelligence is rapidly displacing traditional entry-level roles across multiple sectors. While healthcare showed modest job growth, losses in mining and federal government positions erased these gains. The imbalance between job seekers and opportunities continues to widen—7.4 million unemployed Americans now compete for just 7.2 million open positions.

Recent graduates face particularly bleak prospects, with many unable to secure positions commensurate with their education. Economic uncertainty and technological disruption are reshaping the employment landscape faster than policy responses can adapt.