Generation Z struggles with frustrating job market

This is what the student job platform Handshake found in a recently published report, for which 1,925 members of the upcoming graduating class were surveyed. In a temperature check, the career platform for students received a consistently lukewarm result. Over half (57%) of the class of 2025 said they were pessimistic about entering the job market. Last year, this figure was only 49% of the graduating class.

The reason for these dark clouds is the tight job market, and students are applying for additional positions and working harder to get their foot in the door. Fears of student loan debt, the AI ​​wave and the current political climate are also contributing to this increasing sentiment, according to the report. Faced with changing circumstances, these students are shifting their priorities.

“Faced with a challenging economic landscape, recent Generation Z graduates are taking a significantly different approach to their career goals than their older counterparts who graduated before 2021,” said Christine Cruzvergara, Chief Education Strategy Officer at Handshake Assets“I noticed that previous generations valued flexibility and a good work-life balance; newer generations, on the other hand, show an increasing preference for stability and goal-oriented work.”

In other words, this micro-generation of Gen Z is looking for a permanent job. That's understandable, considering how difficult it is for them to find a job in the first place. Over the years, reports have surfaced of increasingly frustrating and drawn-out job searches. The situation has been attributed in part to the growing clout of employers following layoffs and the automation of the hiring process, wrote Hillary Hoffower for Fast Company.

“Success in this market requires a strategic and targeted approach, and the seniors are already taking proactive steps to stand out,” said Cruzvergara, who described the ambitious class as “pessimistic in the short term, optimistic in the long term.” Fears of a different market are not unfounded, as Handshake reported that job creation on its platform this year “fell short of 2023 levels, which is in line with national trends.” In response, “the number of applications per job was significantly higher than in any of the past five years,” leading to even greater excitement.

Still, students have faith in the institution. They may be preparing for a more stressful end to their four years, but that doesn't mean they've lost faith in the system itself. A full 88% said college contributed a lot or quite a lot to their personal growth and development, and 85% said the experience shaped their career goals. Students are bracing for a longer and perhaps bumpier ride to their dream job. Many students (45%) expect to make at least one turnaround in their careers.

However, the path to an entry-level position has become increasingly longer these days. The current class has already spent over 30 hours researching possible career paths. And this after the class of 2024 sent out 64% more applications for jobs last year than the older graduates before them. The class of 2025 will continue the new tradition and already submit an average of 24% more applications per job than the class of 2024 did at the same time last year.

While this competition for jobs is the main cause of stress (64%), worries about job security and adequate pay, concerns about student loans (54%), generative AI and the upcoming election (45%) added fuel to the fire.

Loan anxiety increased among women, Black students and early college graduates, as these groups are more likely to be in debt, according to Handshake. And while the fate of federal relief payments hangs in the balance alongside a host of other socioeconomic issues, nearly half (46%) of respondents say the fate of the 2024 presidential election will affect their careers. Adding to the uncertainty is the adoption of AI, which a majority of 2025 graduates would like to see slowed down. Most (70%) say generative AI should be more tightly regulated.

“I applied for over 100 jobs before I got my current internship,” a Class of 2025 student majoring in finance told Handshake in the report. “I'm currently going through the application process at one company and it's going well, but if that doesn't work out, I'm going to start applying to as many jobs as I can,” they added.

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