Gen Z Workers Hit Confidence Low Amid Layoffs, Stagnant Pay And Fierce Job Market

Gen Z workers are facing a sharp decline in confidence, driven by recession worries, stagnant pay, and an increasingly competitive job market, a new report finds.

What Happened: The youngest generation of workers is feeling mounting pressure from a tough economic climate, as reported by Fortune. This is primarily attributed to mass federal workforce layoffs and a complex job market.

Data from Glassdoor reveals that less than half of all workers are optimistic about the future. This figure has hit a record low for entry-level employees, with only 43.4% feeling positive about their employer’s 6-month business outlook, the lowest since Glassdoor started collecting data in 2016.

See Also: Mark Cuban Advises GenZ To ‘Spend Every Waking Minute Learning About AI:’ Here’s A List Of AI Investment Opportunities For Long Term

“Entry level workers have less job security. And so as they see these economic headwinds on the horizon, there's an understandable concern that they might be the first ones to lose their jobs in a recession, or they'll be left out in the cold when trying to find a new job,” said Daniel Zhao, Glassdoor's lead economist.

Recent data from LinkedIn also indicates that U.S. workers feel worse about the future than they did during the peak of the pandemic in April 2020. The slowing jobs market and the impact of AI are major contributors to worker anxiety.

Stock market volatility this week, triggered by President Trump’s “reciprocal tariffs”, has further eroded workers’ confidence. Despite a 90-day pause on these tariffs, with the exception of China, economists warn that significant damage has been done.

Why It Matters: Gen Z's confidence slump reflects growing fears about job security in a volatile economy. Federal layoffs, AI-driven job cuts, and a cooling services sector are leaving young workers uncertain about their future. Entry-level optimism has hit a record low, highlighting the pressure this generation faces.

Meanwhile, billionaire investor Mark Cuban is encouraging Gen Z to future-proof their careers by gaining skills in artificial intelligence. As AI continues to reshape industries, investors looking to tap into this transformation may want to explore key opportunities in the AI space to strengthen their portfolios.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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