Jacqueline Kline was a standout at Florida State University, juggling a demanding course load, networking events, and prestigious internships to graduate cum laude in 2023. But after the confetti settled, she found herself back in her childhood bedroom, applying to hundreds of communications and media jobs while babysitting to make ends meet. The results were crushing: quick rejections, a few interviews that went nowhere, or, most often, silence.
“I had this degree—a privilege not everyone gets—but it didn’t matter,” Kline, now 24, said. “My GPA, my hard work, none of it mattered without a job.”
Kline’s story reflects a grim reality for Gen Z. Entering the job market in 2025 is tougher than ever, especially for ambitious 20-somethings. Economic slowdown fears, cautious employers, and federal policy shifts are stifling hiring. White-collar fields, once reliable, are no longer safe bets, and AI is displacing entry-level roles in tech. Government job cuts, driven by President Trump’s DOGE initiatives, have slashed opportunities in agencies, nonprofits, and public health. Even traditional paths like law face oversaturation, while programs like AmeriCorps and the Peace Corps are on the chopping block. For young people who spent years preparing for success, the career ladder feels like it’s collapsing.
A Tough Market for Young Grads
The data paints a bleak picture. According to the Federal Reserve Bank of New York, 41.2% of graduates in their early to mid-20s were underemployed in March 2025, working jobs that don’t require a degree—up from 38.9% in December 2024. Even elite schools aren’t immune: The Wall Street Journal reported that 23% of Harvard’s 2024 MBAs were still jobless three months post-graduation, a sharp rise from 20% in 2023 and over double the 2022 rate. As Richard Mansfield, an economics professor at the University of Colorado Boulder, put it, Gen Z faces “a lot of clouds on the horizon.”
The data paints a bleak picture. According to the Federal Reserve Bank of New York, 41.2% of graduates in their early to mid-20s were underemployed in March 2025, working jobs that don’t require a degree—up from 38.9% in December 2024. Even elite schools aren’t immune: The Wall Street Journal reported that 23% of Harvard’s 2024 MBAs were still jobless three months post-graduation, a sharp rise from 20% in 2023 and over double the 2022 rate. As Richard Mansfield, an economics professor at the University of Colorado Boulder, put it, Gen Z faces “a lot of clouds on the horizon.”
Stories of Struggle
Bella Babbitt, 21, graduated early from a New York liberal arts college in 2024 with a dual degree in business and sociology, aiming for a media strategy role. Despite internships and a three-year degree, she applied to hundreds of jobs without success, relying on odd jobs like waitressing and food delivery. She now works at a family friend’s marketing firm, crediting personal connections for her break. “I knew I’d get rejected, but I kept applying,” she said. “My parents don’t get it—they think hard work guarantees a job.”
Bella Babbitt, 21, graduated early from a New York liberal arts college in 2024 with a dual degree in business and sociology, aiming for a media strategy role. Despite internships and a three-year degree, she applied to hundreds of jobs without success, relying on odd jobs like waitressing and food delivery. She now works at a family friend’s marketing firm, crediting personal connections for her break. “I knew I’d get rejected, but I kept applying,” she said. “My parents don’t get it—they think hard work guarantees a job.”
Abbey Owens, 21, graduated summa cum laude in 2025 with marketing internships and stellar grades but faces a similar wall of rejections. She’s considering bartending, saying, “I’ll take almost anything.” The constant “no’s” after months of applications are eroding her hope.
Even public service dreams are fading. A 21-year-old University of Maryland student, who requested anonymity due to career concerns, lost two government internships—one at the TSA and another at an intelligence agency—due to DOGE-related cuts. Now facing a summer scooping ice cream, they’re rethinking a government career. “It’s shocking,” they said. “Talented young people excited about public service are being shut out.”
A Shifting Landscape
Historically stable paths are crumbling. Tech hiring freezes and AI automation are locking out grads, while law firms are hiring fewer summer associates. Internship postings on platforms like Handshake dropped over 15% from 2023 to 2025. Older workers delaying retirement further clog the pipeline, leaving Gen Z stuck in low-rung roles. One in five job seekers is now long-term unemployed, per the Bureau of Labor Statistics, out of work for 27 weeks or more.
Historically stable paths are crumbling. Tech hiring freezes and AI automation are locking out grads, while law firms are hiring fewer summer associates. Internship postings on platforms like Handshake dropped over 15% from 2023 to 2025. Older workers delaying retirement further clog the pipeline, leaving Gen Z stuck in low-rung roles. One in five job seekers is now long-term unemployed, per the Bureau of Labor Statistics, out of work for 27 weeks or more.
Yet, the broader economy shows mixed signals. May 2025 saw strong job growth, low unemployment, and cooling inflation, but Mansfield notes that “the data hasn’t caught up” to the loss of entry-level roles. Elise Gould, a senior economist at the Economic Policy Institute, highlights that Gen Z was poised for success, with 9.1% wage growth for 16- to 24-year-olds from 2020 to 2025, outpacing older workers. But recent data shows job prospects for 22- to 27-year-olds with degrees worsening sharply, with the unemployment gap for recent grads hitting a 40-year high.
Not the First, But Different
Past generations faced tough markets—boomers during 1970s stagflation, millennials post-2008—but Gen Z’s challenge is unique. Educated Zoomers are now more unemployed than the national average, a shift unseen in recent crises. Gould explains, “It’s the ‘last hired, first fired’ phenomenon. You’ve invested in education, chosen a major, gone into debt—then the market pulls the rug out.”
Past generations faced tough markets—boomers during 1970s stagflation, millennials post-2008—but Gen Z’s challenge is unique. Educated Zoomers are now more unemployed than the national average, a shift unseen in recent crises. Gould explains, “It’s the ‘last hired, first fired’ phenomenon. You’ve invested in education, chosen a major, gone into debt—then the market pulls the rug out.”
Glimmers of Hope?
Solutions exist, but relief may be distant. Mansfield suggests growing sectors like healthcare and caregiving could absorb grads as older generations age, though these may not appeal to those trained for law or tech. AI’s rise could eventually create new roles, but for now, it’s displacing more jobs than it generates.
Solutions exist, but relief may be distant. Mansfield suggests growing sectors like healthcare and caregiving could absorb grads as older generations age, though these may not appeal to those trained for law or tech. AI’s rise could eventually create new roles, but for now, it’s displacing more jobs than it generates.
Kline, now in her second year of grad school at FSU, is betting on her master’s degree to boost her resume, despite taking on loans. “It’s lonely, but I tell myself it’ll be worth it,” she said. Others, like Isabella Clemmens, 22, are forging their own paths. After graduating from Oregon State in 2025, she’s moving to Austin, working retail while applying for branding or graphic design roles. “My dream job might exist,” she said, “but I’m one of 400 applicants.”
A New Mindset
Gen Z’s struggles extend beyond jobs. Locked out of homeownership, retirement savings, and affordable education, many are rethinking the grind. Some abandon white-collar dreams, others prioritize flexibility over loyalty. The open doors older generations took for granted feel bolted shut, pushing young people to redefine success in a world where ambition alone isn’t enough.
Gen Z’s struggles extend beyond jobs. Locked out of homeownership, retirement savings, and affordable education, many are rethinking the grind. Some abandon white-collar dreams, others prioritize flexibility over loyalty. The open doors older generations took for granted feel bolted shut, pushing young people to redefine success in a world where ambition alone isn’t enough.