'While confident about their skills and ambitious for the future, they face technological disruption and economic uncertainty'
Gen Z workers are entering the workforce with high ambitions but are facing significant challenges as entry-level job opportunities decline and artificial intelligence (AI) transforms the employment landscape, according to a report.
Overall, entry-level job postings have dropped by 29 percentage points since January 2024, according to Randstad.
“Gen Z is ambitious and capable — but struggling to find a foothold. They enter the world of work at a time of disruption: despite rising talent scarcity, our research shows there is a steady decline in entry-level roles across sectors. Young workers face higher competition, technological change and uncertain growth paths,” reads part of the report titled The gen z workplace blueprint: future focused, fast moving.
Nearly 8 in 10 Canadians believe that no job is secure, regardless of performance (78 per cent), and that job security is becoming a thing of the past (75 per cent), according to a previous report from Express Employment Professionals.
AI and adaptability
AI is accelerating these changes by automating many tasks traditionally performed by junior employees.
Despite their confidence—79% report they can learn new skills quickly—almost half of Gen Z respondents say they have been rejected for roles due to a lack of skills. Additionally, 41% do not feel they can achieve their dream job because of their education or lack thereof, and 40% cite their personal background as a barrier to pursuing their ideal career. Only 56% of Gen Z say their current job aligns with their dream role, compared to 63% of Baby Boomers.
AI is both a source of excitement and anxiety for Gen Z. The report found that 58% are enthusiastic about AI in the workplace, and 55% already use it for problem-solving—the highest rate among all generations. However, a gender gap exists, with 58% of men using AI for problem-solving at work compared to 52% of women. Concerns about AI’s long-term impact on jobs are also rising, with 46% of Gen Z now worried, up from 40% in Randstad’s 2024 AI & Equity Report.
Gen Z is also the most mobile generation in the workforce. More than half are actively job hunting, and only a third plan to stay in their current role for 12 months. The average tenure for Gen Z in the first five years of their career is just 1.1 years, compared to 1.8 years for Millennials, 2.8 for Gen X, and 2.9 for Baby Boomers. The main drivers for job changes are a perceived lack of career progression and the need for higher pay to keep pace with inflation.
While Gen Z values career growth, only 12% list ongoing skills development as a top priority, highlighting an opportunity for employers to clarify the link between upskilling and long-term success. Despite their readiness to move on for better opportunities, 68% of Gen Z still strive to perform effectively in their current roles, though over two-fifths report lacking confidence in finding another job.
“Gen Z has entered the workforce at a time of immense change,” says Sander van ‘t Noordende, CEO, Randstad. “While confident about their skills and ambitious for the future, they face technological disruption and economic uncertainty. In the face of talent scarcity, employers must take steps to better attract and retain young talent. This means adopting a collaborative approach, working with this generation to set out inspiring career paths.”
Canada’s employment landscape showed signs of improvement in September, with a net gain of 60,000 jobs (+0.3%) and the national unemployment rate holding steady at 7.1%, according to Statistics Canada (StatCan).
