Gen Z in the Job Market: Challenges and Opportunities for 2025

Nearly 4 in 5 U.S. job seekers (79%) reported feeling anxious about the current job market, according to Greenhouse’s 2024 State of Job Hunting report—and Generation Z, in particular, faces unprecedented frustration in their job search.  

“Gen Z is facing the worst of the numbers game,” said Jon Stross, co-founder of hiring platform Greenhouse, in a Q&A with the Tomorrowist team. 
 
As candidates increasingly use artificial intelligence to mass-apply to roles, they’re finding the competition stronger than ever. Over two-thirds of Gen Z candidates (68%) said AI has made the job search more competitive. Additionally, 71% of Gen Z reported encountering “ghost jobs” and 82% spotted scams in their search—yet another source of frustration for younger applicants.  

In this Q&A, Stross shared insights into the hurdles faced by Gen Z in their job search, exploring the generation’s expectations for a fair and communicative process—and what businesses can do to attract and support this new wave of talent.

Why are Gen Z job seekers finding the current job market so challenging? 

Our data shows that every job in our platform, on average, is getting almost double the applications they received a year ago. This is probably for a couple of different reasons. There’s a white-collar recession, where people are hiring less. Also, the AI-enabled candidate—where it makes it much easier to apply to jobs and to customize your resume and cover letter.  
 
People go online and they talk to other job seekers, and everybody else is applying to a hundred jobs. There’s this “FOMO” [fear of missing out], where candidates feel that “If I’m not applying to a hundred jobs, I’m not competitive.” Everyone’s applying to a hundred jobs, and now each company is overrun with hundreds and hundreds of applications. The numbers look terrible.  

Candidates apply to these jobs and don’t hear back from most of them. It looks like college admissions, where everyone applies to 30 schools and is rejected for most of them. It’s stressful.  

One thing I coach people on is that what’s happening inside of companies is usually messier and more irrational than you might think. Frequently, you apply to a job and think, “I’m perfect. I would love this job. I’m super qualified.” And then you don’t get the job.

What happened? What did they think? Why don’t they like me? Usually, it’s not that. The company probably got many qualified applicants. They may not have even seen your resume because they got so many. It may be that they hired somebody internally and never even looked at external applications. Many things could have happened. Taking it personally, that’s the thing I wouldn’t do. 

Greenhouse data showed that almost half of Gen Z job applicants (46%) reported mass-applying to jobs. Is this working for them, or are they running into issues?  

We’ve heard mixed things. There are folks who say they use AI to personalize or customize their resume and cover letter and make sure it’s relevant to the job. I think that helps. There are people who don’t speak English as their first language, so it’s hard for them to write a great cover letter, and AI is super helpful for them. In the same amount of time, I can apply to double the number of jobs, and that gives me more of a chance. There are a bunch of use cases, and those are all positive reasons to do it.   
 
We’ve also heard of cases where people said, “I used this tool and automatically applied to 30 jobs in one minute.”  And we’ve seen some data that it didn’t work and they didn’t get anywhere. I’m not sure AI tools are so effective on their own yet.

Is it ethical for applicants to use AI to help them apply to roles?

Should people use AI to help them apply? Why not. I’d also say you should be honest, make sure you don’t write things that aren’t true. I’d say the same thing for people not using AI. Be honest on your resume and make sure it’s relevant to the job.

Greenhouse data revealed 71% of Gen Z applicants reported encountering a “ghost job” in their job search, compared to 57% of Millennials. What is Gen Z doing differently?

Gen Z may be more aware of that type of thing, or they may be more paranoid that it’s happening to them. They may be more in tune and on the internet. If you get ghosted because a company didn’t get back to you, or if the job itself is a ghost job and nobody’s hiring, it’s the same to you as a candidate. Either way, you got ghosted.  

I’ve also seen instances where an applicant says, “Oh, I got ghosted.” And we’re like, “No, we see from the system that you got an email that you were rejected.” It’s generic, but they wanted somebody to call them and tell them exactly why they didn’t get the job. We see that people have different expectations for the process.  

When that expectation is missed, it feels bad. If you walked into a deli and there were 200 people in line in front of you and it said take a number—it’s going to be a two-hour wait, you’d probably turn around and leave. You wouldn’t stay for two hours. If you did stay, you wouldn’t get to the front of the line and think, “This is ridiculous. Why did it take two hours?” because you saw the line.  

For the job search, you apply, and there might be a thousand people in front of you—but you don’t know that. You make a big investment of time, energy, and commitment, and then you hear nothing back. It’s frustrating. I don’t blame anybody for feeling frustrated by that.  

Additionally, more-senior people might get jobs through referrals, or it might be a different qualification process. If you’re just coming out of school, you’re applying to early-stage roles. It’s not really about qualifications and skills at this point. Everybody’s new and early in their career. For entry-level jobs, it’s difficult. You’re less likely to get a handwritten email or phone call back saying, “Hey, here’s why you didn’t get the job.” Gen Z is facing the worst of the numbers game.  

What advice would you give to companies hiring for entry-level positions and hiring Gen Z candidates?

The irony is, even though there are all these applicants and it’s so difficult to get an interview or offer, companies are still trying to attract qualified applicants and ensure that people want to work for them. In this moment, when so many companies are treating candidates badly and ghosting them, there’s a real opportunity for companies to stand out. If you’re responsive and communicative, if you’re prepared, you can set your organization apart.  

Businesses must avoid sending candidates into irrelevant or poorly planned interviews. Candidates value employers who prioritize a fair and structured interviewing and hiring process. We launched Greenhouse Verified—where companies can earn badges for their career site—to show that companies do those things. We look at the data and say, “Those people are prepared in their interviews. They’re considerate. They’re fair.” It's a great way to stand out.  

Building Bridges with Gen Z Talent

Gen Z faces unique challenges in today’s job market, but these challenges also create opportunities for businesses to stand out. By prioritizing fairness, clear communication, and thoughtful hiring practices, companies can not only attract top talent but also build stronger, more engaged teams.

As Jon Stross put it, “If you’re fair and considerate, if you communicate with candidates, those are powerful ways to differentiate your organization.”