Gen Z Job Market: What Needs to Change in the Workplace

Generations are like siblings. Each one gets teased, misunderstood, and blamed for something until the next group comes along to take the heat. Gen Z is the latest target. They’ve been called everything from lazy to entitled to unprofessional. 

But do those labels miss the bigger picture?

Gen Z hasn’t had it easy. First came the pandemic, then an unpredictable economy, rising costs of living, and a job market that’s anything but stable. Instead of open doors, they’re met with job listings asking for “entry-level” candidates who somehow already have years of experience. And hiring is slower than ever, with companies hesitant to take chances in uncertain times.

So, let’s see why the job market feels so tough for Gen Z and what that means moving forward. This guide will cover:

• How Gen Z workers are struggling in the current job market. 
• What motivates Gen Z in the workplace. 
• The benefits of hiring Generation Z. 

Gen Z Job Market Challenges

You check the job boards, and it’s the same story: “entry-level” roles asking for two years of experience, 100+ applicants already in line, and a salary that barely covers rent. It feels like the odds are stacked against you from the start. 

This is the sad reality of job hunting for many in 2025: competitive, confusing, and disheartening. Older generations might chalk it up to a lack of effort, but there’s a lot going on behind the scenes. Economic uncertainty, inflated job requirements, and hiring freezes aren’t exactly helping.

Let’s break down why finding a solid job feels like such an uphill climb right now.

Rising entry-level expectations

You filter your LinkedIn job search to include “entry-level” roles. So why are you only seeing positions with over three years' experience? The label doesn’t have the same meaning as it used to, making it feel impossible to get your foot in the door straight out of college. 

Exhibit A: Here’s a company advertising an entry-level position with experience: 

You need experience to get the job, but you need the job to get experience. And while employers are starting to focus more on skills than credentials, it doesn’t offer much reassurance when those skills come from hands-on (again) experience. 

Even if you spend hours tailoring your resume and prepping for interviews, your application may vanish into a black hole. No feedback. No follow-up. Just silence. And it’s not just anecdotal. Recent data from the Federal Reserve shows unemployment among recent grads is higher than it’s been since mid-2021, at 5.8%. 

Feel like you’re hitting a wall? Find out more: What to Do When You Can’t Get Hired

An exhausting hiring process

Getting a job used to involve applying, maybe doing a phone screen, and showing up for an interview. These days? The job search and hiring process can feel like a full-time job. 

You might go through 3 to 5 rounds of interviews with assignments, case studies, or unpaid projects. Some also throw in personality tests, group interviews, and AI tests. And still — no guarantees. On top of this, automation and ATS (Applicant Tracking Systems) mean that even well-qualified candidates can get filtered out before a human ever sees their name. 

I spoke to Zoë, a 25-year-old nanny, about her frustrations with the application process: 

⁠I think the algorithms and buzzwords are overdone. It seems that if you put certain words in your resume and check off certain boxes, your application will be seen if you’re applying online. But if you don’t know how to do that, then it will never be seen.⁠

That’s why networking through LinkedIn, career fairs, or old colleagues is more useful than ever. It’s not always fair, but a personal connection can help you get ahead.

Here’s some useful advice to get noticed by the right people: 

Finally landed an interview? Try our Rezi AI Interview tool to be prepared for whatever questions come your way. 

“Unrealistic” career expectations

There’s a growing narrative that Gen Z has overly high expectations. You may have heard it: “They want too much, too fast.” But honestly, a lot of what Gen Z is asking for just reflects the modern workplace.

Here are some important factors for Gen Z at work: 

• Flexibility: Not just remote work, but autonomy in how they work.
  
• Purpose: Gen Z doesn’t want a job just to have a job; they want it to mean something.
  
• Transparency: Honesty surrounding pay, promotion paths, and company values.
  
• Fair compensation: A decent salary that’ll cover the high cost of living and student loans.
  
• Support: Understanding of a work-life balance and mental health issues. 

Yes, they may have higher expectations than previous generations, but none of this is unreasonable. If anything, it reflects the direction work is already moving toward.

The real disconnect is that some employers are still stuck in older models of loyalty, hustle culture, and hierarchy, and when Gen Z questions those things, it’s seen as entitlement instead of evolution.

A competitive job market

Everyone has a degree nowadays, meaning you’re competing against hundreds of college graduates with similar credentials and skills. Unfortunately, there are simply more graduates than there are quality jobs.

Because so many applicants have similar academic backgrounds, employers are leaning into technical abilities and soft skills like communication, problem-solving, and adaptability. My advice to get ahead? Start intentionally building these skills and showing them off with resume achievements. 

I’m not saying a degree isn’t important, but it’s now a baseline, not a differentiator. You can also take it further by adding certifications, internships, freelance experience, and a strong portfolio to your application. 

Political, economic, and cultural turbulence

We can’t overlook the bigger picture. Between inflation, layoffs, political uncertainty, and rapid tech changes like AI, it’s not surprising that employers are being extra cautious. 

Companies are freezing promotions, shrinking teams, and hiring people who already know the ropes, which puts early-career candidates at a disadvantage. Plus, hiring managers are under pressure to make the “right” hire fast, so they may default to someone with more experience, just to save time on onboarding.

Don’t just wait for a job to fall into your lap. Get proactive: What to Do When Unemployed

What Does Gen Z Want in the Workplace?

As much as social media would have you believe, Gen Z wants more than Instagrammable offices, free lattes, or bring-your-dog-to-work day (though those don’t hurt). Gen Z is ambitious and keen to learn, but they won’t break their backs to get the compensation and recognition they deserve. 

Here’s what Gen Z is looking for in the workplace and how managers can step up.

1. Financial security and benefits 

A one-time Christmas bonus and the occasional Olive Garden voucher aren’t enough to motivate younger employees (free pasta doesn’t pay the bills). Gen Z wants fair pay, solid benefits, and a clear path to financial stability. The same Deloitte survey found that financial security ranks higher than “doing what you love” for many young workers.

I spoke with Quinn, a 27-year-old kitchen manager, about getting a fair salary when searching for jobs: 

Money is the bottom line. I want to provide and be able to afford the things I want to do. Most of us are looking for something that pays us enough to live in this economy, which is so expensive. We go to college to pursue those high-paying jobs, but even after that, it can still be very difficult to obtain. I just think Gen Z is looking for a good-paying job to survive in this economy, better benefits, and more help towards retirement.

Zoë also spoke about the cost of living when finding a job:

⁠It’s expensive out here, and most of us can’t afford not to work! The average American has a very small amount of savings or none at all.

Cake.com’s Gen Z Effect report backs this up, with 74% of Gen Z saying they’d leave a job if the salary didn’t cut it, and nearly 70% expecting a promotion within 18 months.

Here’s another honest take on the importance of paying a decent salary: 

Quinn also talked about the lack of benefits available to Gen Z:

A lot of employers don’t offer great benefits compared to the past. You don’t hear as much about pensions or health benefits; these are slim pickings. Even if you get these benefits, the options aren’t great for individuals or family plans. I’d like to see more pensions rather than just contributions to 41K, which isn’t bad, but it would be useful to see more avenues.

It’s no secret that the cost of living is rising. Paying off student debt or saving to buy a house feels like an uphill battle. With 48% of Gen Z not feeling financially secure, many are turning to side hustles to supplement their income.

So, what can managers do? Simple: pay a fair wage with decent benefits. Consider their experience, growth potential, and how that balances against the cost of living. Making this generation feel valued means offering fair compensation and a stable future.

Don’t miss out on a fair salary: Average Salary of a College Graduate

2. Diverse, ethical, and values-driven companies

Gen Z is tuned into social issues, climate change, and how companies contribute (or hide away) from these topics. According to Deloitte’s Understanding Generation Z in the Workplace survey, Gen Z sticks with employers who offer a combo of diversity, purpose, and stability — and they’re not shy about leaving if those things fall flat.

Take a look at these findings: 

• Nearly 1 in 4 have researched a company’s environmental impact before accepting a job.
• 15% have left their roles because the company’s sustainability practices didn’t live up to its promises. 

Gen Z will see right through if companies are all talk and no action. Showing you’re committed to diversity, sustainability, and ethical practices will attract and retain Gen Z talent. 

3. Work-life balance and mental health support

Gen Z grew up in a world where work and life blurred into one long Zoom call, and they’re not about to spend their adult lives stuck in that mode. They’ve also seen the hustle culture of older generations, who go above and beyond just to make ends meet. 

Here’s a pretty common frustration shared by the younger generations: 

Quinn expressed his need to take time away from the daily hustle: 

The best way for employers to attract Gen Z talent is through more paid vacation time. Gen Z is looking for a good work-life balance. A lot of people my age like the idea of a 4-day work week or a good amount of paid vacation time to balance that grind mentality we have in the US.

Gen Z wants a healthy balance and real support, not just the occasional team-building day in a wet field. They’re looking for managers who care, boundaries that are respected, and flexibility that’s genuine (not just for show). Companies that normalize mental health conversations, offer enough time off, and prioritize well-being will win big with this generation.

These findings from Deloitte’s 2025 Gen Z and Millennial Survey reveal why this support is so important: 

• 40% said they feel anxious or stressed most of the time, mainly due to financial stress.
• 35% said their job is a major contributor to that stress.
• According to Cake.com, 92% want to be able to talk about mental health at work.

4. Continuous learning and career development

Despite some naysayers calling out Gen Z for being lazy, research and surveys show they’re actually pretty eager to grow. They aren’t just interested in going autopilot to get through the daily grind. They want a path, a mentor, and skills that get stronger over time.

Here are some stats to back this up: 

• A Deloitte survey found that 86% want on-the-job training, mentoring, and hands-on experience.
• The Career Interest Survey 2024 found that building skills to advance was the top priority for Gen Z when job hunting.
• This survey also found that 67% said they expect in-person training, while 48% want leadership development, and 41% hope for tuition reimbursement for a master’s or other advanced degrees.

Employers should be ready to invest in Gen Z, with structured learning, coaching, and real career ladders. It’s not just about upskilling or handing out promotions for titles’ sake; it’s letting them grow into roles they’re excited about.

5. A sense of purpose

Gen Z isn’t satisfied just clocking in and out. They want to feel like they’re making an impact. According to Deloitte, 89% of Gen Z say that having purpose in their job is key to both their satisfaction and their well-being.

But that purpose can mean different things. It could be working for a company that’s doing good in the world, or earning enough so they can fund their own creative goals. Either way, Gen Z is asking: What am I doing here, and why does it matter?

Employers that clearly communicate their mission and connect it to employees’ roles have a better chance of attracting Gen Z and inspiring loyalty. So, how can managers do this? Take the time to understand what matters to your employees. It’s a win-win if they stick around for the long run. 

6. Smart use of technology 

The latest addition to the workforce is the first true digital-native generation. They grew up around iPad kids, Covid Zoom calls, and never having to call dibs for the “family computer”. For Gen Z, integrating technology into everyday work life isn’t just a perk; it’s expected. 

The Deloitte 2025 Gen Z and Millennial Survey found that 72% say GenAI tools have already improved their work quality, while 59% believe GenAI skills will be critical for career growth. 

Companies that cling to outdated systems or resist tech adoption can feel painfully slow or even irrelevant. Gen Z expects digital solutions that speed up tasks and enhance productivity. And yes, they’re totally open to AI as long as it’s implemented transparently.

Why Are Managers Hesitant About Hiring Gen Z?

Let’s make this clear: not all managers are against hiring Gen Z, not by a long stretch. Gen Z brings new energy, fresh perspectives, and handy digital skills. But hiring hesitation is often less about who’s applying and more about what’s happening around them.

The economy certainly isn’t helping. According to the Job Outlook 2025 survey, nearly two-thirds of employers plan to reduce hiring due to budget cuts. Many companies are also in wait-and-see mode with the ripple effects of tariff changes and unpredictable trade policies. 

Then there’s the experience paradox. Gen Z is applying to “entry-level” jobs that ask for 2–3 years of experience, which totally defeats the purpose. From a manager’s point of view, they’re often trying to avoid the cost and time to train someone from scratch. They want candidates who can plug in and get started right away, especially when teams are small and budgets are tight.

A Redditor summed up this attitude: 

And of course, there’s still some lingering generational differences. Some traditional hiring managers may see Gen Z as high-maintenance, too quick to question authority, or plain lazy. 

Here’s an experience that seems to support these negative stereotypes:

That said, what’s often misunderstood as entitlement is actually just Gen Z asking for things that will likely become standard soon: a fair wage, flexibility, purpose, and mental health support. And when they don’t get these things, there’s no desire to give more than the bare minimum.

Quinn shared more about this potential divide between generations:

I think we have different cultures about the way we view the workplace and the different jargon we use. I feel like Gen Z talks differently compared to millennials or older generations, so there’s a disconnect in communication that can lead to misunderstanding.

Zoë also opened up about another common misunderstanding:

Many 20-year-olds are more tech savvy, but also more anxious to talk to potential employers. My boyfriend’s sister has been pressing “apply” for lots of jobs but not getting any responses. We tell her, “Try going in person and handing them your resume, and make them believe they need you!” But she doesn’t want to do that. So here’s the misunderstanding: an employer might think she’s reluctant to work or hard to deal with, but she’s actually eager to work hard at any job that will hire her. She’s just anxious, as I think many people in their early 20s are.

Final Thoughts: How Is Gen Z Changing the Workplace?

As the first generation to grow up fully immersed in the digital world, they bring more than just tech fluency. They’re pushing companies to rethink what work should look like, not just what it’s always been. Gen Z is open to new tools and using them to shape how they’re integrated into the workplace. 

Gen Z is also challenging the way we think about workplace structure. They’re less motivated by rigid hierarchies and way more into transparency, collaboration, and shared leadership. They want to feel heard, not just managed. 

And with their strong focus on DEI (diversity, equity, inclusion), they’re holding companies accountable for creating environments that reflect real-world diversity, not just checkbox initiatives. They’re looking for purpose-driven organizations that care more than profits, such as sustainability, social responsibility, and community impact. 

One of the biggest cultural shifts? Work-life balance. Gen Z is protecting their personal time, mental health, and boundaries. The pandemic only reinforced what many of them already knew: flexibility is essential. Whether that means remote work, asynchronous schedules, or mental health days, they want jobs that support them. 

FAQ 

What’s the difference between Gen Z vs. Millennials in the workplace?

Gen Z and Millennials both grew up with the internet and tend to lean into progressive values, but there are subtle differences in how they show up at work. 

Gen Z tends to be slightly more vocal about mental health, more skeptical of traditional work structures, and quicker to leave a job if it doesn’t meet their expectations. Millennials often value stability a bit more and may be slightly more tolerant of corporate growing pains. 

Both generations care about things like work-life balance, fair pay, and climate action, but Gen Z is more likely to speak out and push for immediate change. Millennials might still play the long game, while Gen Z is ready to question the game altogether.

What are the best jobs for Gen Z?

Gen Z thrives in roles that blend purpose, creativity, and technology; therefore, jobs in software development, UX design, data analytics, and AI are especially appealing. Digital marketing, content creation, and social media management are also big draws, thanks to their native understanding of online culture. 

Many are also passionate about sustainability and social impact, gravitating toward roles in environmental science, advocacy, or ESG-focused businesses. Entrepreneurship is another big trend, as this generation loves building something of their own, even if it starts as a side hustle. Flexibility and meaning are key, no matter the job title.

How to manage Gen Z employees?

Managing Gen Z is about connection and coaching. They value open communication, mental health awareness, and purpose-driven work. So if you’re leading Gen Z employees, you’ll want to be transparent, offer regular feedback, and create space for their voices to be heard. 

Flexibility is often non-negotiable; they don’t want to be chained to rigid schedules or outdated office norms. What they respond to most is support: show them you care about their growth, give them access to mentorship or learning opportunities, and back it all up with a culture that respects balance and individuality.

What are the Gen Z characteristics in the workplace?

Gen Z is tech-savvy, independent, and vocal about what they want. They aren’t afraid to challenge the status quo or ask why something is done a certain way. At work, they tend to be entrepreneurial, adaptable, and eager to learn, especially if it leads to real career progression. 

They’re also highly values-driven and want to work for companies that take diversity, equity, and inclusion seriously. Mental health and authenticity matter a lot to them, so workplaces that support open conversations and prioritize well-being will attract (and keep) Gen Z talent. 

What do Gen Z value in the workplace?

Gen Z values balance, purpose, and transparency. While salary is important, they’re just as focused on flexible work, mental health support, and doing jobs that align with their personal values. Opportunities for mentorship, upskilling, and clear career progression go a long way in keeping them engaged. But above all, they value authenticity. If a company claims to care about diversity or sustainability, Gen Z will expect to see action (not just talk). If they don’t, they’ll look elsewhere.

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