The Gen Z Shock in the Job Market: Why Are They Being Laid Off?
If the question that defines my generation is, 'Who am I without my profession?', I’d argue that for Generation Z, it will be, 'Who am I without technology?'
It seems the reckoning has arrived for Generation Z, also known as “Gen Z.”
A survey by Intelligent.com involving nearly 1,000 leaders in the U.S. revealed that six in ten employers have laid off recent graduates from this generation just months after hiring them, citing issues such as lack of motivation, initiative, professionalism, and communication skills.
About 75% of companies reported that some or all of their recent hires were unsatisfactory, and more than half of managers believe that these young workers are unprepared for the job market. Moreover, 20% of employers stated that the new employees could not handle the workload, causing many to reconsider hiring graduates in the future.
For those unfamiliar with the term Gen Z, it refers to those born between 1997 and 2012, a generation that grew up with technology and the internet as essential parts of their lives.
This isn't the first time I’ve discussed them. This generation has led movements like quiet quitting, lazy girl jobs, and bare minimum Mondays. Additionally, I’d venture to say they’re the first to demand mental health programs in companies and openly express disinterest in pursuing a traditional career, topics I’ve covered in previous columns.
It’s worth noting that while generalizations can help in some analyses, they shouldn’t be taken as universal truths. I’ve met people from other generations who could easily be classified as Gen Z, and the reverse is also true.
Thus, we can expand the analysis beyond generations and delve into understanding this “persona,” which embodies traits like hyperconnectivity with technology, disinterest in leadership roles, communication and interpersonal challenges, and a lack of motivation and initiative.
With that said, let’s analyze what’s at stake.
What are the positives attributed to Generation Z?
Mental health and work-life balance
I view the movement led by this generation positively. While burnout was once normalized in companies, today it is one of the significant challenges HR departments must tackle. I don’t see a downside to this. A balanced nervous system should be a priority for organizations.
Mentally healthy people are more productive. However, we must be careful not to trivialize the use of medical and psychological terms, like burnout, and turn every problem into a mental health issue.
Non-linear careers and multiple jobs
Another trend driven by Zoomers is the idea that a career doesn’t need to follow the traditional vertical growth path, where the top is a leadership role. They’ve also pushed for more flexible work formats and the concept of holding multiple jobs.
For me, this is liberating. How many people didn’t see themselves in rigid career models but felt compelled to conform to these ideals?
New career formats and work arrangements increase engagement and retention, not only among young people but also among other groups seeking more flexibility and alternative work options.
And the negatives?
With easy access to technology and social media, everything becomes public.
Social media has transformed societal behavior, with young people leading this change. The “Great Resignation” of 2021, marked by high voluntary quit rates, saw Gen Z at the forefront, with hundreds of TikTok videos showing or describing their exits from companies.
The impact is clear: the perception that this generation struggles to handle difficult conversations and to define what should be kept private. The consequence of this tendency to expose everything on social media reinforces stigmas about Zoomers and adds to their individual reputational costs.
The origin of the lack of motivation and initiative
One possible explanation for this lack of initiative is that this generation has been shaped by algorithms. They grew up on digital platforms that suggest everything: if they buy A, the system recommends B; if they watch I, the next series recommended is II, and so on.
Now, imagine yourself without a “co-pilot” to suggest your next step.
Perhaps we are living in the age of shortcuts, of minimum effort. When these young people face real life — without algorithms to suggest their next move in a meeting with their boss or how to handle a workplace conflict—they seem to “freeze.”
What is the greatest challenge for Generation Z?
For me, as a typical millennial, the big challenge was redefining work as an important part of life, but not the only one. For Zoomers, in my opinion, the dilemma will be discovering themselves beyond technology.
If the question that defines my generation is, “Who am I without my profession?”, I’d wager that for Gen Z, it will be, “Who am I without technology?”
Looking at the reasons why so many Gen Zers are being laid off, one possible cause is the “shadow side” created by excessive use of technology, which may hinder the development of socio-emotional skills—essential in the workplace. The key factors pointed out in the survey illustrate this well.
And since technology spans all generations, I leave the same question to you, dear reader: who are you without technology?
See you next time,
Thiago Veras