The scale of the challenge is staggering: in the UK, 1.2 million graduate applications were submitted for just 17,000 roles in 2023/2024, according to the Institute of Student Employers. That’s the highest applications-per-job ratio since records began in 1991, and it’s not just a British problem. Across the Atlantic, Gen Z is finding the doors to opportunity narrowing in both high-growth cities and once-booming industries.
1. The sharp rise in competition
Just two years ago, employers in the UK took on almost 20,000 graduates from a candidate pool of circa 560,000 applicants. Today’s graduates face twice the competition for fewer openings. Rob Breare, the CEO of Malvern College International, told Fortune’s Global Forum, “It starts to give you the idea of just how competitive that market has become.” The picture is just as bleak in the US: 58% of last year’s graduates were still hunting for jobs by July, while one in five had been searching for more than a year.
2. AI’s Reshaping Entry-Level Work
Artificial intelligence is more than a buzzword-it’s fundamentally reshaping the nature of entry-level jobs. With the increased pace of AI adoption, tasks previously performed by junior employees are increasingly automated. In tech, the share of 21- to 25-year-olds at public companies has shrunk by half since 2023. Anthropic CEO Dario Amodei has warned that 50% of entry-level jobs could be wiped out once AI can work full shifts without breaks.
3. The economic chill factor
Even with the US Federal Reserve cutting rates to boost hiring, uncertainty over trade policy and global markets keeps companies cautious. “So long as economic uncertainty is high, it’s hard to know how many people you should hire,” said Laura Ullrich, an economist at Indeed. That hesitation compounds the structural impact of AI, especially in tech and professional services.
4. Pressure to adapt at universities
Many graduates do not feel ready for an AI-driven job market, and employers agree. Breare added that because AI already changes the nature of many job roles, students are “looking to their universities and to their educational program to really give them that fast start to thrive.” Some institutions are striking partnerships with AI firms like OpenAI and Anthropic to integrate hands-on AI training into curricula.
5. The skill stack advantage
The traditional degree is no longer the sole passport to a good job. Employers increasingly value “skill stacks”-a mix of formal education, certifications, and real-world projects. One example of a fast and targeted way to get marketable AI skills is Google’s career certificates, which can be completed in months. AI and big data top the list of most sought-after capabilities, alongside adaptability, critical thinking, and human-AI collaboration, according to the World Economic Forum.
6. Mental health in prolonged job hunts
Prolonged unemployment is a blow to well-being. Career counsellors advise establishing routines in order to keep momentum going, finding support groups of peers, and celebrating small victories-such as completing a certification or an informational interview sustain confidence. Social contact and exercise can buffer the stress of a long search.
7. Where the opportunities are growing
While some technology jobs are in decline, the requirement for AI-related skills is growing across industries. In 2024, almost 628,000 US job postings required at least one AI skill, up from 0.5% of postings in 2010 to 1.7% today. Growth is strongest in the computer and mathematical occupations, but healthcare, marketing, and engineering are also seeing AI skill requirements rise. Workers who are able to integrate AI into sector-specific workflows-whether in predictive healthcare analytics or AI-assisted design-are better positioned to stand out.
8. Why degrees still matter if paired with adaptability
Despite this turbulence, graduates do have higher employment rates and higher incomes than non-graduates. UK data reveals that graduates earn a third more by the age of 31 and have unemployment rates well below those of non-graduates. The difference now, however, is that a degree needs to be coupled with up-to-date and demonstrable skills, and the agility to continue learning as technology evolves.
9. Rethinking the career ladder
With the “bottom rung” of many corporate ladders disappearing, entry points are moving upward. That means new hires are expected to arrive with skills once learned on the job. As Heather Doshay of Signal Fire put it, “The ladder isn’t broken-it’s just being replaced with something that looks a lot flatter.” For Gen Z, this means building expertise early-through internships, side projects, or AI-driven ventures-so they can step onto a higher rung from day one.
The job market that Gen Z is entering is unlike anything any other generation has seen: more competitive, more driven by technology, and less forgiving of passive preparation. But by blending formal education with targeted skill-building, embracing AI as a tool, not a threat, and safeguarding mental wellbeing through the search process, young professionals can carve out space in even the most crowded fields.
