Gen Z at the Edge of the Economy

Why the World’s Youngest Workers Are Running Out of Time — and Patience

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A Generation Meeting a Locked Door

Something unusual is happening at the entrance to the global workforce. The world is adding jobs, unemployment rates hover near historic lows, and many economies insist recovery is underway. Yet the youngest people in the labour market — from Manila to Minneapolis, from Nairobi to New Delhi — are discovering a door that refuses to open.

This paradox is not simply an economic riddle; it is fast becoming a political, social, and technological flashpoint. Gen Z, the first generation raised fully online, is confronting a labour market shaped by forces they did not create: corporate caution, widening skills mismatches, contracting entry-level opportunities, and the accelerating presence of artificial intelligence.

Their frustration is palpable, measurable, and increasingly combustible.

The Numbers Tell a Bleak Story

In the United States, unemployment for young workers surged to 10.8% this summer — more than double the national figure. In major Asian economies the situation is even sharper: roughly 17% in India, 16.5% in China. Across North Africa, where nearly 70% of the population is under 30, joblessness is not merely a statistic; it is an existential threat. Morocco’s youth unemployment has hovered around 36%, while protests over economic stagnation have swept cities from Casablanca to Nairobi.

Even wealthy nations are not immune to this fracture. The United Kingdom saw 1.2 million graduates chasing fewer than 17,000 entry-level jobs last year. Spain’s youth unemployment has fallen from its pandemic peak, yet young workers continue to cycle through precarious short-term contracts that offer neither stability nor mobility. Across Europe, an entire cohort feels stuck on the brink: qualified, ambitious, and underused.

This is not a local issue. It is a global pattern — and a generational one.

AI Is Changing Work — But It Didn’t Create the Crisis

It is tempting to blame artificial intelligence for this upheaval. After all, the idea that machines will replace young workers has captured headlines and political speeches. But the reality is more complex.

Most economists argue that the slowdown in hiring predates the rise of generative AI. The job market, they say, is in a “low-hiring, low-firing” phase — a corporate response to economic uncertainty, retreating investment, and geopolitical instability. Many firms are reluctant to take risks on inexperienced workers when margins feel fragile.

AI is amplifying these pressures, not causing them.

Companies are experimenting with automation in customer service, logistics, and administrative roles — precisely the entry-level positions young people once relied on for their start. But rather than mass layoffs, the immediate effect has been subtler and, in some ways, more damaging: fewer jobs created, slower onboarding, and a silent freeze in the very roles that historically launched careers.

A recent academic study found “no discernible disruption” in the overall labour market since the release of tools like ChatGPT — but it did detect a widening gap between the skills employers demand and the skills new graduates possess. That gap, more than the algorithms themselves, is proving decisive.

The Skills Trap

Education systems across Asia, Africa, and parts of Europe are struggling to adapt to the pace of economic transformation. India reports that only 2.3% of its workforce has received formal skills training. In contrast, Germany sits at 75%; South Korea, 96%.

The result is predictable: millions of young people completing degrees that do not match the jobs that exist — or the jobs emerging tomorrow.

Employers, meanwhile, want workers who are both technically trained and experienced enough to require little supervision. This is not a realistic expectation, but it is now a widespread one. Many companies, facing competitive pressure and cost constraints, are unwilling to invest in training early-career talent. The ladder is being pulled up from below.

The irony is that Gen Z may be the most technologically fluent cohort in history. They are already using AI tools to work faster, solve problems, and produce creative output at scale. Yet the hiring system continues to treat them as unproven and interchangeable.

The Political Temperature Is Rising

In Africa, young workers have turned their frustration into political action. Protests in Kenya, Madagascar, and Morocco have highlighted a toxic mix of rising living costs, economic stagnation, and eroding job opportunities. The stakes are enormous: the continent’s working-age population is expected to double by 2050.

If these economies cannot generate stable, meaningful work, the consequences will be profound — for governance, migration, and social cohesion.

Elsewhere, disillusionment is taking subtler forms: quiet quitting, temporary gig work, prolonged dependence on family support, and a growing sense that the traditional promise of education leading to opportunity has broken down.

This is not merely an economic story. It is a social reckoning.

A Different Future Is Still Possible

There are glimmers of renewal in the global landscape.

Apprenticeships and vocational pathways are making a comeback. In the United States and parts of Europe, employers are beginning to drop degree requirements and prioritize skills-based screening. In emerging economies, development banks are supporting training programmes, entrepreneurship hubs, and digital-skills initiatives that could create millions of new roles.

The World Economic Forum projects that while 22% of jobs will be structurally transformed by 2030, the global economy could still produce a net gain of 78 million new roles — provided countries move quickly to modernize education and expand access to reskilling.

The solutions exist. What is missing is urgency.

A Generation Worth Betting On

If there is a throughline to this crisis, it is this: young people are not the problem. The system is.

Gen Z is better educated, more technologically literate, and more globally connected than any cohort before them. They are also pragmatic: millions are diversifying income streams, retraining, and using AI to accelerate their own work long before employers formalize such expectations.

But talent cannot thrive in a vacuum. Without policy reform, targeted investment, and a willingness from the corporate world to reopen the entry-level door, we risk burning through a generation before it ever finds its footing.

A future that excludes young people is a future that collapses on itself. We still have time to rewrite this trajectory. But the clock is no longer slow.