Gen Z Faces A Difficult Labor Market Due To AI And Their Own Bad Habits

Can incoming youth prospects handle the workaday world?  It’s a question that is plaguing economists and researchers, and for good reason.  No generation in recent memory has had quite as much trouble integrating into work environments compared to Gen Z.

US employers report that they are increasingly reluctant to hire Gen Z labor, and this includes Gen Z -age hiring representatives who don’t want to hire their own.  Despite this trend the latest generation to enter the work force says they feel greater optimism for their job prospects going into 2025 according to surveys, but are they living in la la land? 

The recruitment process has apparently been grueling for many companies that are relying increasingly on AI to process resumes.  What they did not expect was for Gen Z workers to also use AI as a tool for supercharging the amount of applications they send out.  Employers now say AI might be complicating the hiring process, with savvy Gen Z exploiting the tech to better misrepresent their qualifications and apply to jobs randomly through automation. 

This dynamic has created an environment of “ghost applicants” and also “job ghosting”.  Companies offer positions to Gen Z applicants which are automatically accepted, only to discover that the person is no longer looking.  Sometimes the position is filled and the employee is processed, only for the worker to never show up.  

AI and online hiring has allowed Gen Z to send out resumes by the thousands and gather as many potential offers as possible; then sift through those offers and accept the one they prefer while never following up on the flurry of AI generated applications they fired into the ether.  Companies say the time they have to spend on sorting job applicants has skyrocketed in the past few years.  Over 80% of hiring managers say they will be rejecting AI generated applications outright.  

The days of a prospective employees physically walking in the door, turning in a resume or filling out an application, then talking to a manager and shaking their hand are nearly gone.  This has caused a lack of tangibility in the labor market that is in large part a problem caused by the corporate world’s obsession with efficiency.  Some will argue that Gen Z is merely adapting to the technology and the circumstances, however, the situation is beginning to backfire on everyone.

When Gen Z prospects are required to engage an employer during in-person interviews, many struggle with social interaction and around 20% have even reverted to bringing their parents to interviews as a security blanket.  Employers list unrealistic salary expectations for entry level positions as a problem for younger applicants, along with a tendency to be offended without cause.

Companies say bad habits of younger workers are creating a quiet but discernible shift away from Gen Z in the labor market.  They argue that trends like “career catfishing”, job ghosting, quiet quitting and concepts like “bare minimum Mondays” are turning Gen Z employees radioactive.  

As Fortune recently noted, Gen Z college grads in particular are notorious among corporate recruiters for their lack of basic work skills and professionalism.  Over the course of the pandemic labor rush and the beginning of the inflation crisis labor was in short supply, meaning younger applicants just entering the workforce have enjoyed a demand bonanza.  Many of them have never faced a market environment in which job options are in short supply.  This is changing.  

Employers are firing Gen Z employees in large numbers.  At least 60% say they are getting rid of many younger employees that were hired in the past year.  Employers’ gripe with young people today is their lack of motivation or initiative – 50% of the leaders surveyed cited that as the reason why things didn’t work out with their new hire. 

Bosses also pointed to Gen Z being unprofessional, unorganized, and having poor communication skills as their top reasons for having to sack grads.  Leaders say they have struggled with the latest generation’s tangible challenges, including being late to work and meetings often, not wearing office-appropriate clothing, and using language appropriate for the workspace.

The reasons for this behavior and inability to adapt to work environments are up for debate.  Some argue that the public education system has failed to prepare children for the expectations of the private sector, which is a fair point.  Others argue that parents and previous generations have made soft kids with no understanding of discipline and dedication. 

Socialists claim that Gen Z is in the midst of a “worker revolution” and that they are “rebelling against capitalist exploitation”.  This may be true for a contingent of young people (especially college grads) brainwashed by the political left into thinking they shouldn’t have to work or have merit to get the things they desire.  But an empty stomach is an empty stomach and it can’t be filled with socialist righteousness – people will work because they need to.  

So, maybe they haven’t needed to?

Another more grounded explanation is that around 50% of Gen Z adults (18-28) are still living at home with their parents – A record high not seen in 80 years.  This safety net has allowed young workers the option to leave a job or turn down a position at will without facing financial insecurity.  Unfortunately, this has also ingrained attitudes which could make many in Gen Z unemployable in the future.  Not to mention, staying at home won’t necessarily be an option for most of their lives.  

The greater reality is that Gen Z will be overtaking Millennials as the primary labor pool in ten years.  Though some companies are launching pre-employment programs designed to teach Gen Z hires better work habits, there will need to be a sea change in how American youth are prepared for the adult world.  AI and automation isn’t going to save them from the struggle; if anything, it’s going to make their lives much harder.