Gen Z faces a changing, and challenging, job market accelerated by AI

As Gen Z enters the workforce, they’re finding themselves up against the dawn of AI, which is quickly changing the landscape of work. Combine that with a few years of high-profile tech layoffs, and it’s easy to understand why recent graduates have some trepidation around a career in tech.

And it seems those concerns might be valid. A survey from the HULT International Business School found 37% of leaders saying they’d rather have a robot or AI fill an open job role than hire a recent graduate. Additionally, 91% of HR heads say it’s more cost-effective to hire more experienced employees compared to on-boarding and training recent graduates, with 69% citing that would be at least twice as much expense in the long run. And recent graduates have similar frustrations regarding experience and skills, with only 24% saying they feel they have the skills they need for their current roles.

“The idea that Gen Z is worried about job opportunities is very real,” says Art Zeile, CEO of DHI Group. “We’re seeing it in our data.”

The July Jobs Report from Dice also shows that from the first half of 2024 to the first half of 2025, the number of job postings looking for candidates with six to nine years’ experience increased 20%, and postings for candidates with 10 or more years’ experience increased 17%. Meanwhile, job postings that were seeking candidates with zero to three years of experience declined by 3% — the only cohort to see a decline, says Zeile.

Tanya Moore, chief people office of consultancy West Monroe, agrees the current job market for Gen Z is uncertain, and likens the current state of AI to the introduction of the internet, which eventually reshaped the way we work and live, impacting nearly every industry and career.

“Even if it doesn’t happen overnight, AI is going to impact every industry and job role,” she says. “When I say I think Gen Z needs to be very prepared, I don’t think everybody has to suddenly become an AI engineer. But Gen Z has to be prepared mentally to be resilient, adaptable, and to be constantly learning because things will change.”

Mixed messaging on AI for college students

There’s a large gap between the skills employers are looking for and the skills recent graduates have on their résumé. The survey from HULT found that 97% of HR heads say it’s important new hires have a strong foundational understanding of technology-related topics such as AI, data analytics, and IT. However, only 20% of recent graduates say they have this level of understanding. And while 44% of recent graduates say they received some form of AI training or education in college, 87% say they wished their college had provided more.

In another survey from State of the graduate: Class of 2025, 28% of computer science graduates expressed the most pessimism about their career based on the current job market and economic news. They also had the most concern around AI, from 8% in 2023 who said they are highly worried about the impact of gen AI on their careers, to 25% in 2025.

There’s also the issue that high schools, colleges, and universities are currently navigating the logistics of students using AI. Students are under scrutiny for cheating and plagiarism using AI, and some institutions have banned the use of AI entirely, while others have taken a more blended approach of being realistic about students embracing AI.

Gen Z is entering a workforce where there are high expectations from companies regarding AI skills. And there’s often an assumption or stereotype that young people are more tech savvy, or have an easier time using these tools. Yet, due to the “lump and uneven education around the use of AI,” as Moore says, there’s a good chance graduates aren’t equipped with the right AI skills.

Gen Z workers will need to evaluate their AI-readiness and identify if they need additional training and support in fostering these skills. If undergraduate programs refuse to teach them, students will need to find other avenues to better prepare themselves. One skill that Zeile recommends is Python. Nearly all AI skills require some level of Python knowledge, so it’s a good place to start for any recent graduates looking to tailor their résumés for AI.

LLMs skills out, orchestration skills on the rise

There’s been a shift in demand from skills around building LLMs to orchestration skills, which requires melding the business needs with the understanding of how to attach an LLM effectively, says Zeile.

Now that LLM models have largely been developed, it’s time to put them to work and deploy them to support business strategies. This has shifted the focus to maintaining LLMs and ensuring they align with the overall business goals, creating a new category of job opportunities for those with this skillset.

“This orchestration concept is coming out in all our data,” says Zeile. “At the beginning of 2024, about 10% of the jobs on Dice required AI skills. Now 36% of them require AI skills. We’ve seen this amazing surge, but it’s for these very distinct skills of how to implement AI in your business. So again, this is leaving behind a lot of the people that have very short careers.”

Gen Z workers then are at a disadvantage as AI replaces entry-level work and creates more tailored demand for mid-level and expert candidates. But Gen Z workers can get a head start with AI skills, by taking on projects that demonstrate business knowledge, and building a résumé that demonstrates proficiency in blending these skills.

“Gen Z workers who come in with a basic fluency in AI tools — knowing how to prompt, iterate, and evaluate — will stand out. Even more so, those who can think strategically about how AI fits into workflows will find themselves climbing faster than ever before,” says Hannah Calhoon, VP of AI at Indeed.

Even if you don’t have the years of experience to back it up, AI skills are so new it’s likely even more advanced professionals won’t have the right skills. There’s an opportunity for self-motivated Gen Z candidates to take on independent learning projects that will catch the eye of hiring companies.

Companies disrupting their own talent pipelines with AI

Organizations that rely on AI to replace entry-level work are setting themselves up to face a pipeline problem. Focusing on mid- and senior-level employees will create a gap in talent down the line. Now is not the time to abandon entry-level workers for AI. Rather, it’s the time to figure out how to find the balance between human- and AI-led work.

“I think companies that eliminate entry-level work without rethinking what that work could be instead might find short term gains,” says Moore. “But in the mid and long term, I think they’ll be in crisis. There’ll be no pipeline of talent to take the work and grow with the company.”

So it’s  incumbent on Gen Z workers to identify companies investing in internal skilling programs for human workers, just as much as they’re investing in AI. Organizations committed to career growth will be the ones that invest in younger talent through internships, apprenticeships, and professional development to maintain that consistent talent pipeline within the company.

“Companies that overlook early-career talent are betting against their future,” says Calhoon. “You can’t promote a chatbot. You can’t build culture with an API. But if you’re not investing in the next generation of workers, you’re creating a leadership vacuum.”