As the labor market experiences a significant slowdown, with employment decreasing and unemployment rates rising this year, Gen Z (born between 1997 and 2012) is taking a direct hit as they begin their full-fledged professional lives.

Many members of Gen Z, who are either entering the job market after graduating from college or starting their first job, are finding it difficult to secure employment or receive the salary they expect, even if they do manage to land a job.

Michael Tavares, a 23-year-old college student, expressed to the media, including The Wall Street Journal, “Gen Z seems to be at a disadvantage in many ways,” sharing his struggles in job hunting. Tavares said that he has been looking for various jobs, but it's challenging to find one that pays enough to cover basic living expenses.

Tavares added, "When I apply for higher-level jobs, people always seem to look at my age first, and if I don't meet certain criteria, they don’t consider anything else."

Jung Mo, a Korean graduate who finished college this year, secured a position at an IT company, but it's a contract job rather than a permanent position, and his salary falls short of the $100,000 annual level he had hoped for. As a result, he is still living with his parents.

Jung said, "I can’t afford to live independently due to the high rent and cost of living in Southern California," adding, "The job market this year feels much harsher compared to last year’s graduates, even though it’s only been a year."

Another recent college graduate shared, “I’ve submitted many applications, but most companies responded that we’re not a good fit.” They expressed that repeated failures in job hunting have been deeply discouraging, and explaining the situation to their parents has also been challenging.

On the other hand, Gen Z, who entered the workforce during the COVID-19 pandemic and started their careers through remote work, is gradually taking up a larger share of the U.S. labor market.

Although the number of Gen Z entering the workforce is continuously increasing, the rapidly deteriorating job market is creating high barriers for them, as they have little to no experience in society or the workplace.

In fact, according to a recent Bank of America (BOA) survey, nearly 47% of Gen Z adults are financially dependent on their parents or family. Data from the International Labour Organization (ILO) revealed that almost 20% of Gen Z youth and adults are neither in school nor employed.

A recent survey by the New York Federal Reserve (NY Fed) showed that Gen Z and other lower-income groups are facing financial difficulties. The Fed analyzed that the probability of these groups being unable to make even minimum debt payments next year has risen to 13.3%, the highest figure since April 2020, when the pandemic began.

Experts have raised concerns that credit card delinquency rates among young people, including Gen Z, are steadily increasing due to the worsening economic situation.



<Hwandong Cho>