Employers Prefer AI Over Recent Graduates: What This Means for Gen Z’s Future

As Gen Z enters the workforce, they are facing increasing criticism from employers. A recent report from the Freedom Economy Index revealed that 68% of small business owners consider Gen Z employees to be the "least reliable" among all their workers. Additionally, 71% of employers noted that younger workers are more likely to experience mental health challenges in the workplace.

A survey conducted by Hult International Business School further emphasizes these concerns. Out of 1,600 employers surveyed, 37% stated they would prefer to hire AI over recent graduates. The survey also found that 96% of employers believe college education is inadequate in preparing students for real-world jobs.

The reasons behind employers’ reluctance to hire recent graduates are clear: 60% of employers cited the lack of real-world experience, while 55% pointed to a difficulty in working effectively within a team.

Experts suggest that in order for Gen Z to be fully prepared for the workforce, they will need to find alternative ways to gain experience. While challenges remain, the younger generation must adapt in order to thrive in today’s competitive job market.

What is Gen Z?

Gen Z refers to the generation born roughly between 1997 and 2012, following the Millennial generation. As of 2025, they are between the ages of 13 and 28. This generation is the first to grow up entirely in the digital age, with smartphones, social media, and constant internet access shaping their worldview and communication style.