Key Takeaways
- Entry‑level hiring in the U.S. has fallen to its lowest level since 2020, leaving many Gen Z graduates struggling to find work that matches their degrees.
- AI is both a threat to routine‑cognitive entry‑level jobs and an enabler that lets young workers build portfolios, prototype products, and launch businesses with limited technical expertise.
- Many graduates are responding by creating their own opportunities—freelance gigs, side‑hustles, or full‑time startups—rather than waiting for traditional job offers.
- Success in this new landscape often hinges on learning by doing, seeking mentorship, and blending youthful creativity with experienced teammates.
- While entrepreneurship offers a sense of control, it carries financial risk and long hours; nevertheless, a growing share of Gen Z views multiple income streams and ownership as the new career promise.
Ashley Terrell’s Struggle in a Tight Job Market
After earning a business administration degree from the University of Hawaii in 2024, Ashley Terrell hoped to land a marketing role at a tech firm. Months of daily applications yielded only an offer to stock power tools at Home Depot, a position she described as a shock. She spent her breaks searching for jobs in the store bathroom, feeling the sting of a market that no longer rewarded her student marketing experience with Red Bull. Her story illustrates how recent graduates are confronting a sudden drop in entry‑level openings that once seemed assured.
Gen Z Unemployment and the AI‑Driven Shift
The Bureau of Labor Statistics shows the unemployment rate for Americans aged 22‑27 at its highest point since the pandemic. Daniel Zhao of Glassdoor calls the job market “sluggish,” noting that even getting a foot on the career ladder is difficult for entry‑level seekers. Gen Z workers are especially pessimistic, believing that artificial intelligence could replace many of the routine tasks traditionally assigned to new hires. This perception fuels anxiety that their careers may stall before they truly begin.
From Traditional Jobs to Gig Work and Self‑Creation
Faced with scarce full‑time offers, many young graduates are turning to retail, dog‑walking, freelance projects, or remaining unemployed for months. Others adopt a proactive stance: when no jobs exist, they create their own. This shift reflects a broader desire for purpose, flexibility, and alignment with personal values—qualities that traditional entry‑level roles often fail to provide in the current climate.
Terrell’s Portfolio‑Building Pathway
Ashley Terrell leveraged her student‑run YouTube channel to build a marketing portfolio. She began by direct‑messaging brands she admired, offering to produce video content—sometimes for free—in exchange with Jamba Juice, which bought one of her videos for Instagram and TikTok ads. Two years later, that portfolio secured her a part‑time marketing role at a local distillery, and she continues to work with a roster of clients on branded content. Her initiative shows how self‑directed projects can substitute for missing formal employment.
Entrepreneurial Pivots: Agrwal, West, and Others
Suhit Agarwal, a 2025 USC graduate in computational and applied mathematics, never secured an interview at Google despite numerous applications. He pivoted to founding engineering roles in startups he helped launch, using AI tools like Claude Code to shoulder responsibilities beyond his solo capacity. One of his ventures was acquired, giving him equity and later a fintech job. Shola West, 25, experienced a team layoff at a media agency and responded by launching a brand consultancy in London, now serving clients such as Paramount and Sony Music while creating TikTok content. Both describe their paths as “forced” by the market but ultimately empowering.
AI as Both Threat and Tool for Young Workers
Experts note that AI’s double edge is reshaping early‑career prospects. On one hand, it threatens to automate routine cognitive work—think customer service, data entry, and basic coding—displacing many entry‑level positions. On the other, low‑code AI platforms enable anyone to build prototypes, automate tasks, and even launch companies without deep technical training. Ethan Choi of Khosla Ventures observes that partners now use AI to handle work once done by associates, reducing the need for junior staff while empowering workers to create their own ventures.
Research Evidence on AI’s Impact on Early‑Career Employment
A Harvard Business School professor, Joseph Fuller, points out that entry‑level jobs often involve substantial routine cognitive work, making them especially vulnerable to AI disruption. A 2025 LinkedIn survey found 63 % of executives expecting AI to replace at least some entry‑level tasks. Stanford’s Digital Economy Lab reported a “substantial decline” in employment for early‑career workers in AI‑exposed fields, with knowledge‑degree holders feeling the greatest pressure.
Prototyping and Company‑Building with AI Assistance
Madison Hsieh, a 25‑year‑old program manager at Amazon, used the Cursor coding platform to build a social‑media‑app prototype in about a month—a task that would have required several months and a team of engineers without AI aid. Though she remains at Amazon, she sees the prototype as a stepping stone toward a full‑time entrepreneurial venture, craving a more impactful role than a typical corporate 9‑to‑5 can offer.
Startup Journeys: Amadon, Khasabo, and the Value of Mentorship
Celeste Amadon, 22, turned down a JP Morgan investment‑banking internship to launch Known, a dating‑app company that uses AI to match singles. After raising over $9 million in venture capital, her parents shifted from skepticism to support. As CEO, she has had to learn hiring, firing, team management, and capital allocation—skills she describes as “like having done an MBA.” Elijah Khasabo, 22, co‑founder of Vidovo, recalls his last job folding clothes at TJ Maxx and stresses that leadership is learned by doing. Both founders emphasize surrounding themselves with experienced mentors and hiring teammates who complement their youthful enthusiasm.
Entrepreneurship Versus the Old Promise of Stability
While startups offer autonomy, they also bring significant financial risk, long hours, and a high failure rate—particularly for founders from under‑represented groups who often lack access to capital and networks. Yet many Gen Z workers view entrepreneurship as a path to control in an unpredictable economy. Shola West notes that the “old promise was stability; the new promise is ownership.” A Fiverr report reveals 67 % of Gen Z respondents want multiple income streams for financial security, and about half believe traditional employment may become obsolete. Even those not launching full‑time startups pursue side‑hustles as safety nets against layoffs.
What Gen Z’s Experience Signals for the Future of Work
The struggles and innovations of today’s graduates may foreshadow broader workforce shifts. Aneesh Raman, LinkedIn’s chief economic opportunity officer, argues that fixing the entry‑level work crisis is the first step toward improving work for all. As AI continues to reshape tasks, the ability to learn quickly, create personal projects, and blend youthful creativity with seasoned expertise will likely become essential competencies. In short, Gen Z’s improvisation today could become the playbook for tomorrow’s labor market.