Gen Z’s meager job prospects may not have AI to blame

In today’s challenging job market, young workers, particularly those from Generation Z, are facing significant hurdles in securing employment. Recent research highlights that the primary issue is not a lack of skills in artificial intelligence (AI), but rather a general shortage of job openings. A study by the Federal Reserve Bank of St. Louis examined labor conditions for individuals aged 18 to 24 from April 2023 to late 2025. It found that the unemployment rate for this age group increased by 2.9 percentage points due to the scarcity of available jobs. In contrast, the shift in employer demand towards workers with AI skills only contributed to a 1.1 percentage point rise in unemployment. This suggests that while AI skills are becoming more important, the broader issue of job availability is a more significant factor affecting young workers today. QUESTION: How might the current job market challenges faced by Generation Z influence their career choices and educational pursuits in the future?