Gen Z’s meager job prospects may not have AI to blame

In a rough labor market, the youngest in the workforce continue to face the steepest uphill climb.

[Illustration: Adobe Stock]

Gen Zers might not want to be too quick to blame AI—or their lack of AI skills—for their employment struggles. According to new research, a general shortage of job openings is the primary reason.Data from the Federal Reserve Bank of St. Louis analyzed labor conditions for 18- to 24-year-olds between April 2023 and late 2025. The unemployment rate for the group rose by 2.9 percentage points due to overall job scarcity. By comparison, unemployment only increased by 1.1 percentage points as a result of employers shifting their demands toward workers already skilled in AI.

“Since April 2023, hiring has slowed, and young workers, especially new entrants, have borne the brunt of that softening,” authors William Rodgers III and Alice........

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