By 2025, Gen Z – born between 1997 and 2009 – will make up about 27% of the global workforce. Yet this generation has also experienced the highest unemployment levels in decades, according to OECD data. Compared to millennials and Gen X, their jobless rates are consistently higher across nearly every major economy.
What’s striking is the speed of the decline. Within five years, the gap between young workers and older peers widened dramatically, leaving millions of Gen Zers struggling to gain traction in a labor market that no longer feels built for them.
The Pandemic’s Lasting Shadow
COVID-19 fundamentally reshaped the job landscape for young people. Before 2020, a quarter of U.S. workers under 25 were employed in service and hospitality roles, sectors most devastated by lockdowns. Those jobs disappeared almost overnight, forcing Gen Z into years of recovery delays.
For many, the first steps into adulthood, like renting apartments, saving money, or building careers, were stalled indefinitely. Economists note that older workers rebounded faster, while Gen Z absorbed the brunt of long-term losses, leaving scars on their earning potential and career confidence.
A Worldwide Pattern of Inequality
Youth unemployment has become a shared crisis, though the severity varies. In Spain, nearly 38% of young workers are unemployed—over twice the rate of adults aged 25 to 74, according to Eurostat. In South Africa, the figures are even starker, with 46% of youth jobless and some regions reporting above 60%.
These statistics aren’t temporary fluctuations; experts see them as symptoms of deep structural barriers preventing young people, especially men, from entering stable employment. The data reflects not just local struggles but a generational crisis unfolding worldwide.
Why Young Men Are Falling Behind
Recent studies from the U.S. Federal Reserve highlight a surprising reversal that young men are now unemployed at higher rates than young women. Traditionally, the reverse was true, with women facing more obstacles in male-dominated industries. The shift suggests labor markets have changed dramatically since the pandemic.
More women are finding opportunities in growing sectors, while men face dwindling prospects in areas historically open to them. This reversal raises urgent questions about how the modern workforce is structured, and whether evolving economies are leaving men behind.
Entry-Level Jobs Are Disappearing
One of the biggest hurdles for Gen Z men is the decline of entry-level positions in industries that once offered stability. Sectors such as tech, law, and business, fields often dominated by men, are hiring fewer fresh graduates than in past decades. Elise Gould of the Economic Policy Institute explains that “incumbent workers are holding onto jobs longer, which can make it harder for new labor market entrants.”
At the same time, automation and slower economic growth are shrinking the pool of opportunities. For many young men, the traditional ladder into middle-class careers doesn’t just feel shaky, it’s vanishing altogether.
Women’s Edge in Expanding Fields
Not all sectors are shrinking. Healthcare, education, and hospitality, where women traditionally outnumber men, continue growing. This gives young women an edge in finding work, even as job markets weaken. Analysts say women’s stronger presence in these sectors explains why their unemployment rates haven’t risen as sharply.
Meanwhile, men are more concentrated in contracting industries, leaving them exposed. The gender divide underscores how shifts in economic growth patterns can ripple across generations, reshaping who thrives and struggles.
Degrees No Longer Guarantee Security
For decades, a college diploma was seen as a safety net. But for Gen Z men, that’s no longer the case. In mid-2025, the U.S. unemployment rate for recent male graduates is nearly identical to that of peers without degrees, hovering around 5.5%, according to Bureau of Labor Statistics data.
The fading “degree premium” reflects a labor market where credentials matter less than connections, timing, and luck. Young men who once expected education to open doors now find those doors firmly shut, breeding frustration and disillusionment.
Giving Up the Job Hunt
A growing number of young people aren’t just unemployed; they’ve stopped looking for work entirely. Classified as “discouraged work seekers,” they no longer believe job searches will pay off. This trend is evident in South Africa, where discouraged youth have surged since 2023, according to Statistics South Africa.
Economists warn that once young workers disengage, reentry into the labor market becomes harder, causing long-term damage. For these young people, unemployment is not just about paychecks but also identity, purpose, and belonging.
The Scarring Effect on a Generation
Unemployment at a young age doesn’t just hurt in the moment; it leaves lifelong scars. Research from the National Bureau of Economic Research shows that prolonged early-career joblessness can lower lifetime earnings by up to 2%. Without steady jobs, youth miss out on training, networking, and advancement opportunities.
These setbacks compound over decades, creating a cycle of lower pay and stalled progression. Economists call it the “scarring effect,” and warn that today’s jobless Gen Zers could be tomorrow’s struggling middle-aged workers.
Mental Health on the Line
The economic toll has another cost … mental health. Surveys by Pew Research and the American Psychological Association report sharp increases in anxiety, depression, and low motivation among unemployed youth. Prolonged idleness erodes skills, confidence, and social ties, making eventual reentry even more difficult.
Experts stress that the connection between unemployment and mental well-being cannot be ignored. Beyond statistics, these struggles show up in daily life, missed milestones, strained family dynamics, and an overall sense of falling behind in a world that keeps moving forward.
South Africa’s Breaking Point
According to official government data, the crisis is more visible than in South Africa, where youth unemployment reached 62.4% in early 2025. These figures reveal systemic challenges of limited job creation, educational mismatches, and barriers to entrepreneurship. Economists note that such staggering rates are not cyclical but structural, reflecting deep-rooted inequality.
The consequences extend beyond economics, fueling frustration and political instability. For young people, lacking opportunity breeds a sense of hopelessness, threatening the nation’s future growth and cohesion.
A North-South Divide in Opportunity
While youth unemployment touches every region, southern Europe, the Middle East, and sub-Saharan Africa face the most acute challenges. OECD research shows that countries in northern Europe and parts of Asia are recovering faster, thanks to stronger labor protections and targeted youth programs.
By contrast, southern regions risk losing what economists call the “demographic dividend”, the potential economic boost of large youth populations. Without jobs, these numbers become liabilities rather than assets, deepening global inequality between countries that can absorb their young workers and those that cannot.
Can Policy Turn the Tide?
Governments are responding, but results remain mixed. Training programs, apprenticeships, and entrepreneurship initiatives have been launched from Europe to Africa. The International Labour Organization reports that while these interventions help, they cannot fully counter structural issues like stagnant economies or automation-driven job losses.
Policymakers face a stark reality that short-term programs may ease pain without broad economic reforms, but won’t solve the crisis. The debate now centers on whether political leaders will commit to large-scale, long-term strategies capable of reshaping the job landscape for Gen Z.
Technology’s Double-Edged Sword
Automation and artificial intelligence are key drivers of the youth unemployment crisis. Routine, entry-level jobs—once abundant stepping stones—vanish before alternatives appear. A McKinsey report estimates that by 2030, up to a quarter of current work tasks could be automated. While new tech-driven careers are emerging, they require specialized skills and fierce competition.
Young men are particularly vulnerable, given their concentration in roles most affected by automation. Technology is creating opportunities, but the gap between displacement and reinvention has never been wider for Gen Z.
Fewer Young Men in the Workforce
Labor force participation among young men is shrinking. Data from the U.S. Bureau of Labor Statistics shows fewer Gen Z men entering or staying in formal employment than previous generations. Some turn to gig or freelance work, while others withdraw altogether. A smaller share returns to school, delaying careers even further.
This shift challenges traditional labor pipelines and raises concerns about long-term workforce sustainability. Economists warn that societies risk permanent productivity and economic growth reductions as more young men exit the system.
Global Snapshots of a Struggling Generation
The youth unemployment story is global but varied. In Asia, economies once fueled by rapid industrialization now face job shortages, leaving millions of graduates without placements. Structural barriers such as limited infrastructure and political instability compound the problem in Africa and the Middle East.
Meanwhile, Europe and the Americas show sluggish job recovery, particularly for men. The World Bank highlights that no region is immune, though the severity differs. What unites them all is a generation searching for stability in economies that feel increasingly unstable.
Economic and Social Fallout
The rise in youth unemployment doesn’t just hurt individuals; it drags down entire economies. Fewer young workers means weaker consumer demand, slower innovation, and rising debt as households struggle to support jobless members. Social scientists warn of ripple effects with delayed marriages, lower birth rates, and increased household dependency.
In some regions, frustration spills into social unrest. When millions of young men feel shut out of the economy, the consequences extend beyond labor markets, shaping political movements and testing social cohesion.
How Gen Z Is Fighting Back
Despite the grim statistics, Gen Z is not giving up. Studies show young people are pivoting to new skill-building, digital entrepreneurship, and creative industries. As the first true “digital natives,” they are uniquely positioned to carve out new opportunities in online spaces.
Some experts believe this resilience may eventually become the generation’s strength. By navigating two global crises—the pandemic and automation—Gen Z may emerge more adaptable, more cautious, and better equipped to thrive in economies yet to be defined.
A Global Call to Action
International organizations, including the International Labour Organization and the World Economic Forum, have declared youth job creation a global priority in 2025. Their reports stress that unemployment among young men could become a permanent feature of modern economies without urgent reforms.
Proposed solutions include localized industry growth, investment in renewable energy, and education reform. The consensus is clear that action must come quickly, before millions of young people lose faith entirely in labor markets that seem increasingly closed to them.
The Road Ahead for Gen Z
The future of jobless Gen Z men is uncertain, but the stakes are high. Experts agree that reversing the crisis requires collaboration between governments, businesses, and communities to create meaningful opportunities. Behind the data are individuals delaying marriages, families, and dreams.
This is more than a labor market issue; it is a human story. If society fails to act, the scars could last for decades. But with urgency and innovation, the world still has a chance to turn a lost generation into a resilient one.