Gen Z is hurtling toward a career cliff

Business Insider

6 hours ago

Jacqueline Kline was a proud overachiever in college. She enrolled in a packed class schedule, attended campus networking events, landed an impressive slate of internships, and graduated cum laude from Florida State University.
Then, after her 2023 graduation celebrations wound down, Kline found herself back in her childhood bedroom. Over the next year, she applied to hundreds of communications and media jobs between babysitting shifts. The responses were deflating: Some companies sent quick rejections, others turned her away after a couple of interviews, but most simply ghosted her.
"I graduated, but I didn't feel successful," the now 24-year-old told me. "I had this degree — and that's a privilege, not everyone has that opportunity — but it didn't matter. My GPA didn't matter. None of it mattered if I didn't have a job."
It's a tough time to look for work. For 20-somethings, breaking into the market is particularly daunting. Companies and consumers are bracing for an economic slowdown, and employees are hesitant to leave their current gigs. Federal policy uncertainty is spooking businesses, and white-collar industries are not the safe career bets they used to be.
The tried-and-true ways that young people used to climb the economic ladder are disappearing, and AI is threatening to replace entry-level work in enviable fields like tech. President Donald Trump's cost-cutting efforts have wiped out jobs in government agencies, nonprofits, and public health. Law school applications are ballooning beyond what the industry can sustain, and humanitarian routes like AmeriCorps and the Peace Corps are among the White House DOGE office's latest targets. It all leaves young people — even those who spent their teen and university years positioning themselves for the future — barreling toward a career cliff.
So, what's an ambitious Gen Zer to do?
Kline is finishing her second year of graduate school at FSU. She said she gave up looking for full-time work because "the burnout was definitely real" and decided to take out student loans to pursue her master's. Many of her friends are also facing tough decisions: Commit to a tall stack of job applications, go back to get another degree, or settle for a role outside their chosen field. Each option feels risky.
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As Richard Mansfield, an economics professor at the University of Colorado Boulder, put it, Gen Z has "a whole lot of clouds on the horizon." Based on the Federal Reserve Bank of New York's analysis of census data, 41.2% of graduates in their early and mid-20s were underemployed in March, meaning they were working jobs that don't typically require a bachelor's degree. That's up from 38.9% in December. And Ivy alums aren't immune: In January, The Wall Street Journal reported that job placement at more than a dozen top MBA programs was the worst "in recent memory" last year. Notably, Harvard told the Journal that 23% of its job-seeking MBAs who graduated in spring 2024 were still looking for work three months after leaving campus, a figure that was up from 20% in the prior year and more than double what it was in 2022. Higher education may be known for its historical role as a path to prestige and higher pay, but Gen Zers are wondering whether it's worth it anymore.
Bella Babbitt, 21, graduated a year early from a private New York liberal arts school with a dual degree in business and sociology in 2024. She hoped her internships and the fact that she completed her bachelor's in just three years would help her to land a role in media strategy and to eventually start her own business. She spent a year applying to hundreds of roles without luck while taking on odd jobs to make money, such as waiting tables and delivering food. More recently, she's worked at a marketing firm owned by a family friend. She "truly believes" the reason she's employed is because of that personal connection.
"I was applying and I felt like, 'This is so stupid because I know I'm going to get rejected,'" she said, adding, "My parents have such a different mindset, where they can't comprehend how we've applied to all these jobs and we're not getting anything."
Historically reliable prestige jobs are facing challenges, too. In tech, hopeful grads are being boxed out of entry-level positions not only by AI, but also by hiring freezes. In law, US firms' hiring of entry-level summer associates is hitting a historic low. Even "stopgap" roles that were stepping stones to bigger things are evaporating: From the start of 2023 to the start of 2025, internship postings on the college job-search platform Handshake declined by over 15%. When Gen Zers are ready to take the leap into a larger role, they're finding themselves stuck — young people can't fill desks because older generations are delaying plans to quit and retire, leaving new grads on the lower rung of the career ladder for longer.
It's leaving Abbey Owens discouraged. She graduated summa cum laude last month from a liberal arts college with a record of marketing internships, good grades, and a slew of unanswered applications. After months on the job hunt, the 21-year-old said she's thinking about bartending and losing hope of finding a role in her field: "I'll accept almost anything," she told me.
Babbitt and Owens describe the pain of continuous rejection — a stream of "no's" that drags on for months or years, application after application. Their experience is a symptom of a landscape with a dwindling number of job postings and lower hiring rates. One in five job seekers is considered long-term unemployed, according to the Bureau of Labor Statistics, meaning they've been out of work for 27 weeks or longer.
Even Gen Zers who are trying to follow their passions into less pressure-packed jobs than finance and tech are facing tough times. Young people dedicated to public service or academia, where there is an implicit exchange of stability in place of bigger salaries, are staring at an uncertain road.
A 21-year-old University of Maryland student (who asked not to be named for fear of career retaliation) told me they'd lost two roles because of federal government cuts. This spring, they were interning at the Transportation Security Administration before being let go after DOGE prompted cuts of the agency's remote work contracts. Their summer internship — a coveted role at an intelligence agency — was canceled the following week.
"I think it's just important for people to know how shocking all of this is," they said, adding, "There's a whole new wave of talented young individuals who are excited about public service who are being denied opportunities and thrown to the dirt."
Now, without a summer job, they're likely to stay in their hometown and scoop ice cream or take shifts at a coffee shop, they said. They have two years left at Maryland, and they're rethinking their dream of working in government.
Other public sector options aren't promising, either. As part of DOGE 's work, federal agencies are under a hiring freeze, AmeriCorps is pausing programs, the Peace Corps is cutting staff, and federally funded roles at nonprofits, science labs, and public health centers are vanishing.
Amid the rising sense of doom, Mansfield cautions that the Zoomer labor market outlook is complicated — and economists don't yet have a full picture. Hard indicators show the economy is relatively healthy on paper: The US added a higher-than-expected number of jobs in May, inflation is getting under control, and the unemployment rate is low. Mansfield said that "the data hasn't caught up yet" to reflect the loss of entry-level opportunities that many new grads are experiencing.
"It's not as if we're running out of useful things for young, educated people to do," he said. "It's just that we're undermining our mechanisms for getting them there."
While Gen Z might seem headed toward a careerpocalypse, economists and labor market analysts told me the cruelest part was that this instability wasn't inevitable. Elise Gould, a senior economist at the Economic Policy Institute, said Gen Zers were almost set up for success. Gould's analysis of labor market data from May indicates that even after adjusting for inflation, 16- to 24-year-old workers experienced historically strong wage growth of 9.1% from February 2020 to March of this year, a figure that exceeded wage growth for workers 25 and older (5.4%). The cohort was set to have lower average unemployment rates and better job opportunities than every other set of young workers since the 1990s. But the rosy picture has rapidly worsened. Job prospects for 22- to 27-year-olds with a bachelor's degree or higher " deteriorated noticeably" in the first quarter of this year, per the New York Fed, and the recent-grad gap — the difference between the overall unemployment rate and the unemployment rate for people who recently graduated from college — just hit its widest point in at least 40 years.
It's worth noting that previous generations have faced tough labor markets: Some baby boomers launched their careers in the middle of the 1970s stagflation, and millennials were looking for jobs in the wake of the 2008 financial crisis. But Gen Zers are seeing the start of a troubling trend. Educated Zoomers, specifically, are now more unemployed than the rest of America, something that didn't happen early in the pandemic, during the Great Recession, or in the midst of the dot-com crash.
"When the overall unemployment rate goes up a little bit more, I don't think people always understand that that is what happens: the 'last hired, first fired' phenomenon," Gould said, adding: "What are you going to do at that point? You've gone into debt going to school, you've already decided your major, you've already made all those investments. It's very hard to shift."
The economists I spoke with emphasized that there were solutions to the Gen Z career cliff, but things may get worse before they get better. Mansfield said some sectors, like caregiving and healthcare, could see increased labor demand as baby boomers and Gen Xers grow older — even if those opportunities aren't as attractive to people trained to do something else, like law or finance. He added that as AI becomes more integrated into the economy, Gen Zers and later generations will most likely start to find roles in careers that don't exist yet.
Kline, the recent Florida State grad, is banking on some sort of turnaround. Even as opportunities for people with advanced degrees dry up, she thinks the master's and some more internships will make her resumé that much more attractive to prospective employers.
"I'm reminding myself that it will be worth it, taking all these loans will be worth it, because having this master's degree will get me further and give me a better chance at a job opportunity," Kline said, adding. "Before I came back to school, that was one of the loneliest times of my life."
Market conditions are changing how ambitious Gen Zers see themselves and their work. It isn't just about whether they can land a job after graduation. A lot of people my age feel that open doors older generations took for granted — having access to homeownership and retirement, affording kids or healthcare or further education — are being locked alongside our career paths. It's part of why young people are becoming less loyal to the grind, or giving up on traditionally white collar careers altogether.
It's also why Isabella Clemmens, 22, is betting on herself. After graduating from Oregon State in May, she's moving to Austin to try out a new city, meet friends, attend concerts, and try living on her own. When Clemmens and I spoke a few weeks ago, she was planning to work in retail until her growing stack of applications landed her a branding or graphic design role. After four years of hard work, she hadn't expected her job hunt to be so challenging. To kick off postgrad life in Texas, though, she would have to make concessions.
"My dream job might exist," she told me. "But I'm one of 400 people applying for it."