The New Challenges Facing Young Workers in Today’s Job Market
Since graduating from Barnard College of Columbia University in 2024, 23-year-old Menasha Thomas has been navigating the increasingly complicated job market. Armed with a degree in urban planning, she’s spent 14 months applying for jobs, attending networking events, and participating in job-search groups, but has yet to land a full-time position in her field. Instead, she’s taken on various jobs, including nannying and working in New York City cafes, while also taking real estate and professional certification courses to boost her employability. Despite these challenges, she remains hopeful. Recently, she landed a paid internship with a real estate company, which she’s “extremely grateful” for.
Menasha’s experience highlights a troubling trend: young workers are finding it harder to secure full-time jobs. This difficulty is not solely due to personal factors but rather the evolving dynamics of the labor market. New research from workforce data company Revelio Labs reveals a series of challenges young applicants face, including a rapidly aging population, fewer entry-level positions, and a hiring trend that favors more experienced candidates.
The Aging Workforce and Its Impact on Hiring
The Revelio Labs report found that the average age of new hires in 2025 was 42 years old, up from 40.5 in 2022 and 40 in 2016. This shift is due in part to an aging population and the fact that older workers are staying in the workforce longer. With fewer older workers retiring, there are fewer opportunities for younger workers to step into entry-level roles.
Lisa Simon, chief economist at Revelio, explains that employers are becoming more risk-averse. The uncertainty brought on by years of economic and political turmoil, combined with the rapid rise of artificial intelligence, has led companies to value experience more than ever. “Employers are expecting candidates to hit the ground running,” Simon said, “without giving them much of an opportunity to train up.”
The impact of this shift is particularly felt by younger workers. Revelio’s data shows that the share of workers under 25 has dropped significantly, from 14.9% in 2022 to 8.8% in 2025. Hiring for this age group has fallen by more than 45% since 2019. In contrast, inflows for workers aged 65 and older have increased by nearly 80%.
A More Selective Job Market
This trend coincides with a broader slowdown in the labor market. The U.S. Bureau of Labor Statistics recently reported that 2025 was the worst year for job growth since the pandemic-era recession, with overall job growth falling to levels typically seen during economic downturns. This shift, combined with high inflation, has resulted in fewer job openings and fewer opportunities for young workers to break into the labor force.
This age gap is not just a statistical curiosity—it’s affecting real people like Menasha, who, despite her qualifications and efforts, struggles to get her foot in the door. “Younger workers face fewer entry opportunities,” the Revelio report notes, adding that this trend underscores a labor market that is “slowing, becoming more selective, and prioritizing experience over long-term potential.”
The Role of Technology and AI
The rise of artificial intelligence has also played a significant role in shaping the labor market. AI is reshaping industries, and workers in AI-exposed fields—particularly those in the 22-25 age range—have seen a 13% drop-off in employment since 2022. Companies are pouring billions into AI in 2024 and 2025, and in this environment, the demand for technical skills is soaring.
However, employers are also increasingly seeking “judgment” and “people skills”—areas where older workers often have an edge. Matt Baird, senior staff economist at LinkedIn, notes that employers are increasingly looking for candidates with “experience, judgment, and people skills,” which are often more developed in older workers. This leaves young applicants at a disadvantage, especially in positions where interpersonal skills are critical, such as sales or customer service.
Advice from CEOs
This shift toward valuing experience has prompted some of the most prominent figures in business to offer advice to younger workers. In a November 2025 interview with CNN, JPMorgan Chase CEO Jamie Dimon urged Gen Z workers to focus on “in-demand skills” like AI and coding, noting that “it’s not enough anymore to say, ‘I can work hard.’” LinkedIn’s CEO Ryan Roslansky also cautioned that traditional career planning, like developing a five-year career plan, may be “outdated” in today’s fast-moving world.
Chris Kempczinski, CEO of McDonald’s, went viral in December for a candid message to young professionals, advising them to take charge of their own careers. “Nobody cares about your career as much as you do,” he said, stressing the importance of self-initiative and responsibility.
The Rise of “Unretirement”
While young workers struggle, older Americans are working longer. The trend of “unretirement”—where people return to work after retiring—has been rising, driven by both financial necessity and the desire for purpose. Janet Masters, 67, switched careers after earning a second master’s degree at 55, and continues to work because she enjoys learning and growing. “It feels good to continue to develop my skill set,” she said. For many older Americans, continuing to work is not just a financial necessity but a way to stay engaged and purposeful.
The aging workforce has important implications for younger workers. As older workers stay in their roles longer, fewer opportunities open up at the bottom. According to Nicole Bachaud, a labor economist at ZipRecruiter, this means younger workers face stiff competition and limited entry-level opportunities. "In the low-hire, low-fire environment, there’s little movement in the labor market for these young workers to break in," she said.
Navigating a Shifting Landscape
For recent graduates like Menasha, these changes can be frustrating and disheartening. However, they also highlight the importance of adaptability. In this new labor market, young workers must be prepared to acquire in-demand skills, build resilience in the face of setbacks, and seek out opportunities—whether through internships, professional development courses, or networking.
It’s clear that the traditional pathways to career success are evolving. The road ahead may be more difficult for young workers, but with perseverance and strategic planning, opportunities still exist—especially for those who can adapt to the changing dynamics of the job market.