The job market used to reward college degrees with stable careers and bright futures. Today. Many Gen-Z graduates find their degree no longer ensures employment, leaving them in the competitive landscape.
This mismatch hinders their career goals and creates broader economic challenges.
Availability of Fewer Jobs
The job market for new graduates is becoming increasingly challenging. The decline in available positions has led to heightened competition among candidates and can lead to an unemployment rate of 4.2%.
This adds to the stress and anxiety of securing employment. Unfortunately, these difficulties are expected to persist in the near future, making the job search process even more daunting for fresh graduates.
Economic Instability
Gen Z graduates are facing a perfect storm of economic challenges as they enter the workforce. The ongoing “vibecession” has created a volatile job market, while rising inflation and a cost-of-living crisis have led to higher levels of debt.
Financial concerns and the economy continue to be significant sources of stress for the class of 2024. They fear burnout and struggle to advance in their careers.
Networking Does Not Always Work
Although networking can be beneficial in securing a job, there are other options for many young graduates. Employers often prioritize filling positions quickly rather than finding the perfect candidate, leaving many qualified individuals without the jobs they desire.
Knowing the right people may open doors. However, it does not always lead to a position that aligns with one’s qualifications or aspirations.
Competition with AI
Gen Z graduates face a formidable competitor in the form of generative AI (artificial intelligence). Companies are increasingly cutting entry-level jobs in favor of automating tedious tasks that were previously assigned to new hires.
While AI can replace tasks, it does not necessarily eliminate entire jobs. Due to this, fresh graduates are recommended to utilize this opportunity to enhance their performance and help organizations find efficiencies by leveraging AI. By demonstrating capabilities in machine learning, data structuring, and automation through coding, Gen Z can gain a competitive edge early in their careers.
Challenges Associated with Remote Work
The rise of remote work has changed the job landscape. It requires strong digital communication and self-management skills. Some Gen Z graduations may struggle to adapt to these expectations. It can make it harder for them to compete in the present job market.
Changes in Hiring Season
Employers need to be more strictly adhering to traditional hiring calendars when it comes to their recruitment process. Many companies are now opening up opportunities at less conventional times.
For instance, they are hiring at the beginning of the year. This may not always align with the availability of graduates or soon-to-be graduates. This shift allows companies to adapt more quickly to changes in the market. However, it can also create challenges for job seekers who are trying to time their job search with their graduation.
Too Many Degrees
While the number of people earning degrees has increased in recent years, this trend has diminished the value of a diploma in the job market. Having a degree no longer sets a candidate apart or provides a significant advantage in the hiring process. As more individuals obtain higher education, the competition for jobs becomes forever, and the degree itself loses its power to distinguish one candidate from another.
Outdated and Inefficient Systems
As Gen Z enters the workforce, they are likely to encounter a stark contrast between technologies. They are familiar with cutting-edge consumer technologies whereas they have to work on outdated, cumbersome inefficient systems prevalent in workplaces. Companies that have been successful without adopting their internal systems to the rapid advancements of the digital age may find it challenging to meet the expectations of Gen Z. This disconnect can lead to frustration and disillusionment among the upcoming workforce.
Lack of Practical Experience
Employers increasingly seek candidates with practical, hands-on experience, which many recent graduates lack. Internships and work placements are crucial. However, not all students have access to these opportunities. It leaves them at a disadvantage compared to more experienced candidates.
Need for Soft Skills
Employers are increasingly looking beyond a candidate’s technical expertise and placing greater emphasis on soft skills. They seek graduates who excel in communication, leadership, and teamwork. Even those with impressive degrees must demonstrate their ability to collaborate effectively and take on leadership roles when necessary. While technical knowledge remains important, the ability to “play well with otters,” and lead when required has become a crucial factor in securing employment.
Global Job Market Competition
The job market is more global than ever, with candidates from around the world vying for the same positions. This increased competition can make it tougher for Gen Z graduates to stand out. It is especially so if they lack international experience or multilingual skills.
Reputation of Gen-Z
Gen Z faces negative stereotypes and criticism from previous generations and business leaders regarding their work ethic and attitude in the workplace. The yonder workers are perceived as having too many rules, being oppositional, and lacking etiquette, reliability, and flexibility. However, Gen Z’s tendency to bring their full selves to work and prioritize purpose-driven, community-engaged organizations can be seen as a strength. Their approach to work-life balance may offer valuable lessons for success in the workplace.
Devaluation of Degrees
As more people attain higher education, the relative value of a degree can diminish. Employers may now expect a degree as a baseline requirement rather than a standout qualification. This makes it harder for graduates to differentiate themselves without additional skills or certifications.
Rise of Gig Economy Jobs
According to a report by Upwork, 64 million Americans are freelancers or gig workers in 2023.
The growth of the gig economy has shifted the job market landscape, with more short-term, freelance, and contract positions becoming available. Many Gen Z graduates find themselves taking these gigs out of necessity, which often offer less stability, fewer benefits, and limited opportunities for career growth. It makes their degrees seem less valuable in securing traditional full-time employment.