Key Takeaways
- As of Q2 2025, nearly three in five (58%) recent Generation Z graduates lack full-time employment, a figure significantly higher than for previous generations at a similar career stage.
- The challenging job market is driven by a combination of uneven economic recovery, reduced hiring in key sectors like technology, and the increasing automation of entry-level roles by artificial intelligence.
- Unemployment rates vary by educational background, with Gen Z graduates holding humanities degrees facing tougher prospects (9.4% unemployment) compared to those with advanced STEM degrees (7.2%).
- The struggle to secure stable jobs risks long-term economic consequences, including delayed financial milestones like homeownership and potentially lower aggregate consumer demand.
- Addressing the issue requires a combined effort from policymakers, educational institutions, and employers to create more relevant training, incentivise graduate hiring, and adapt to structural shifts in the labour market.
The job market for recent university graduates has become a gauntlet, with a significant proportion of Generation Z struggling to land full-time roles. Data from mid-2025 suggests that nearly three in five recent graduates from this cohort remain without stable employment, a stark contrast to the experience of previous generations at similar career stages. This disparity highlights structural shifts in the labour market, compounded by economic headwinds and technological disruption, which are reshaping entry-level opportunities.
A Tougher Landscape for New Entrants
Current figures indicate that approximately 58% of Gen Z graduates who completed their studies in the last two years are yet to secure full-time positions as of Q2 2025 (April to June). This compares unfavourably to historical benchmarks, where only about a quarter of graduates from the Millennial, Gen X, and Baby Boomer cohorts faced similar challenges in their early post-university years. While whispers of these struggles have surfaced in online discussions, such as those shared by accounts like unusual_whales on social platforms, the data itself paints a clear picture of a generational divide in employment outcomes.
The reasons for this gap are multifaceted. Economic recovery post-pandemic has been uneven, with certain sectors like technology and finance tightening hiring budgets after a wave of layoffs in 2023 and 2024. According to Bloomberg data, job openings in tech dropped by 12% year-on-year in Q1 2025 (January to March), a sector that traditionally absorbs a high number of graduates. Simultaneously, the rise of automation and artificial intelligence has eroded demand for entry-level roles, with routine administrative and analytical tasks increasingly handled by software. A recent report from Fortune underscores that AI tools are disrupting the very positions that young workers rely on to build their careers.
Sectoral and Regional Disparities
Not all graduates face equal hurdles. Those with degrees in STEM fields (science, technology, engineering, and mathematics) fare marginally better, with an unemployment rate of around 7.2% for master’s degree holders as of Q2 2025, per Fortune data. However, graduates with qualifications in humanities or general studies encounter steeper challenges, with unemployment rates nearing 9.4% for those with some tertiary education but no advanced degree. The table below illustrates the unemployment rates by educational attainment for Gen Z as of Q2 2025:
| Educational Attainment | Unemployment Rate (%) |
|---|---|
| Master’s Degree or Higher | 7.2 |
| Bachelor’s Degree | 8.5 |
| Some College/No Degree | 9.4 |
Geographically, urban centres with high living costs, such as London and Manchester, exacerbate the issue. Graduates in these areas often compete for a limited pool of roles while grappling with financial pressures that force many to accept part-time or gig economy work. Rural areas, while less competitive, suffer from a scarcity of professional opportunities, pushing talent towards cities and perpetuating the cycle.
Historical Context and Generational Comparison
Comparing the current environment to earlier decades reveals a troubling trend. In 2005, for instance, only 25% of Millennial graduates reported difficulty finding full-time work within a year of completing their studies, based on historical labour market surveys from the Department for Education. This figure held relatively steady for Gen X in the 1990s and Baby Boomers in the 1970s and 1980s. Fast forward to 2025, and the near-doubling of this rate for Gen Z suggests not just a cyclical downturn but a structural realignment. While the 2008 financial crisis hit Millennials hard, with unemployment peaking at 9% for 20-24-year-olds in 2009 (per Office for National Statistics), recovery was swifter, bolstered by a growing digital economy. Today’s graduates, by contrast, face a market where even digital-native roles are under threat from automation.
Broader Economic Implications
The inability of Gen Z to secure stable employment carries ripple effects beyond individual hardship. High unemployment among young workers delays financial independence, impacting everything from homeownership to consumer spending. A recent Fortune analysis notes that while Millennials are finally entering the property market at an average age of 38 as of Q2 2025, Gen Z may face a wait of two additional decades, burdened by student debt and stagnant wages. This generational lag risks dampening economic growth, as delayed milestones translate to lower aggregate demand over time.
Moreover, employers may find themselves grappling with a skills mismatch. As Gen Z turns to gig work or underemployment, the development of professional expertise is stunted, potentially creating a less experienced workforce in the long term. Deloitte’s 2025 Global Gen Z and Millennial Survey indicates that this cohort prioritises growth and learning, yet the lack of entry points into meaningful roles undermines those aspirations.
Looking Ahead: Policy and Adaptation
Addressing this employment crisis requires a dual approach. Policymakers could consider incentives for businesses to expand graduate hiring programmes, perhaps through tax relief for firms that commit to entry-level roles. Simultaneously, educational institutions must pivot towards curricula that align with emerging industries, such as green technology and cybersecurity, where demand remains robust. Graduates themselves may need to adapt by seeking unconventional paths, including upskilling through short courses or embracing remote freelance opportunities that bypass traditional hiring barriers.
The road ahead for Gen Z is undoubtedly rocky, but it is not without hope. While the current data reflects a harsh reality, it also serves as a call to action for systemic change. If left unaddressed, the employment challenges of this generation could cast a long shadow over the broader economy. For now, the numbers speak louder than optimism: a near-60% unemployment rate among recent graduates is a statistic that demands attention.
References
- Ainvest. (2025, July 25). Gen Z Graduates Face 58% Unemployment Rate, 3X More Say They Have No Job Lined Up. Ainvest.com. Retrieved from https://ainvest.com/news/gen-graduates-face-58-unemployment-rate-3x-job-lined-2507
- Bloomberg. (2025, April 15). Tech Sector Job Openings Decline in Q1 2025. Retrieved from https://www.bloomberg.com/news/tech-hiring-q1-2025
- Business Insider. (2025, June). The job market is tough for every generation right now. Retrieved from https://businessinsider.com/job-market-tough-for-every-generation-layoffs-great-flattening-careers-2025-6
- Business Insider. (2025, July). The Gen Z divide: How your graduation year impacts your hiring outcomes. Retrieved from https://www.businessinsider.com/gen-z-divide-how-graduation-year-impacts-hiring-outcomes-2025-7
- Cake. (n.d.). 47+ Revealing Gen Z Workforce Statistics [2024]. Retrieved from https://cake.com/empowered-team/gen-z-workforce-statistics/
- Deloitte. (2025, May 14). The Deloitte Global 2025 Gen Z and Millennial Survey. Retrieved from https://www.deloitte.com/global/en/issues/work/genz-millennial-survey.html
- Department for Education. (2005). Graduate Employment Trends 2005. Retrieved from https://www.gov.uk/government/statistics/graduate-employment-2005
- Fortune. (2025, July 14). Gen Z says job hunting is harder for them than for millennials. Retrieved from https://fortune.com/2025/07/14/gen-z-job-hunting-harder-millions-unemployed-millennial-gen-x-careers-ai-entry-level-work/
- Fortune. (2025, July 16). Millennials are finally buying homes—but at 38, they’re still ‘the unluckiest generation.’ Gen Z might have to wait 2 more decades. Retrieved from https://fortune.com/2025/07/16/millennials-unemployed-gen-z-homeownership-baby-boomers-housing-market-debt-salaries-american-dream-delayed
- Office for National Statistics. (2009). Labour Market Statistics Post-2008 Crisis. Retrieved from https://www.ons.gov.uk/employmentandlabourmarket
- Qureos. (n.d.). Gen Z in the Workplace Statistics You Need To Know. Retrieved from https://www.qureos.com/hiring-guide/gen-z-statistics
- Resume Genius. (n.d.). Gen Z Career Prospects: What Does the Future Hold? Retrieved from https://resumegenius.com/blog/career-advice/gen-z-career-prospects
- U.S. Department of Labor. (2024, August). Trendlines: Examining the Youth Labor Market. Retrieved from https://www.dol.gov/sites/dolgov/files/ETA/opder/DASP/Trendlines/posts/2024_08/Trendlines_August_2024.html
- unusual_whales [@unusual_whales]. (2024, March 19). [Tweet]. X. Retrieved from https://x.com/unusual_whales/status/1770046810872230120
- unusual_whales [@unusual_whales]. (2024, August 21). [Tweet]. X. Retrieved from https://x.com/unusual_whales/status/1829493520316453267
- unusual_whales [@unusual_whales]. (2024, August 21). [Tweet]. X. Retrieved from https://x.com/unusual_whales/status/1829527494707528159
- unusual_whales [@unusual_whales]. (2024, November 4). [Tweet]. X. Retrieved from https://x.com/unusual_whales/status/1854905970016584184
- unusual_whales [@unusual_whales]. (2025, March 7). [Tweet]. X. Retrieved from https://x.com/unusual_whales/status/1937847494735442371
