Goldman Says Gen Z Workers Are Struggling. Gen Z Says…

Gen Z is facing a tough job market — at least, that’s what the economists say.

Federal Reserve Chair Jerome Powell recently described the current U.S. labor landscape as “low-hire, low-fire,” and Goldman Sachs’ top economists are echoing the sentiment.

Their analysis points to a mix of macroeconomic and structural forces making it harder for Gen Z to land stable, well-paying jobs. Even as companies report historic productivity highs — largely fueled by AI and automation — job creation hasn’t kept up. Outside of sectors like healthcare, many industries are seeing weak or even negative hiring growth.

That imbalance is hitting younger workers the hardest. As we covered in our previous article, “‘Get a Degree, Get a Job’ Stopped Working—Labor Research Says”, Gen Z graduates are entering a workforce that rewards not just credentials but experience and automation readiness. In fact, today’s young workers make up a larger share of the long-term unemployed than they did a decade ago.

AI is part of the equation, but Goldman notes that it’s not just about automation cutting entry-level positions. Employers themselves are pulling back, hesitant to hire a generation they see as “different.” Surveys show nearly 75% of hiring managers find Gen Z “difficult to work with,” citing issues like unrealistic expectations or a lack of motivation and commitment.

However, Wall Street and corporate leaders may be misreading what’s actually happening.

While the corporate narrative paints Gen Z as struggling, their version of the story looks very different.

A global study by Randstad Digital shows that young tech workers in particular aren’t failing, but are redefining what success through employment looks like.

Gen Z is less focused on climbing a single corporate ladder and more on building multiple income streams. One in four aims to balance a full-time job with a side hustle, while another 13% prefer gig or freelance work altogether. Labor research and figures may not necessarily capture this diversification in detail.

They’re also not afraid of AI.

In fact, 76% of Gen Z workers embrace it, with nearly half using tools like ChatGPT and CoPilot to learn faster and work more efficiently. Rather than being displaced by automation, they’re using it to upskill and stay competitive.

More importantly, Gen Z workers are not afraid to walk away when workplaces don’t meet their standards for flexibility, growth, or pay. Nearly half (49%) of Gen Z workers have voluntarily left a job for those very reasons.

So, though hiring might look slow, it’s not just because Gen Z can’t find jobs or are difficult to hire. Many are simply unwilling to settle for ones that don’t align with their values or offer real development.

In other words, Gen Z isn’t struggling to adapt to work. Gen Z is reshaping what type of work is worth applying for and adapting to.

What some executives label as a “generational crisis” might actually be a generational course correction, with Gen Z embracing new and evolved workplace values.

While Boomers and Gen X climbed corporate ladders built on loyalty and hierarchy, younger workers are reinventing what success means. According to Deloitte’s 2025 Gen Z and Millennial Survey, today’s employees still value career growth — just not at the expense of balance and autonomy. They’re choosing jobs that offer learning opportunities, flexibility, and purpose over long hours and rigid hierarchies.

They’re also surprisingly grounded about technology. Gen Z workers are not AI idealists or doomsayers. They’re what may be considered AI realists or pragmatists.

While 74% believe generative AI will reshape their roles, they’re responding with preparation instead of panic. Many are doubling down on soft skills like creativity, leadership, and empathy — the traits AI can’t yet replicate.

So while older generations might see “quiet quitting” or job-hopping, Gen Z sees something else entirely: growth-hunting.

Instead of dismissing Gen Z as entitled or a nightmare to hire, employers and economists might want to look at what their choices are saying about work itself.

Gen Z candidates are not difficult. They know their worth and employers have a lot to gain by knowing how to adapt to their needs.

Gen Z’s approach exposes inefficient, outdated corporate systems. They’re pushing for flexibility, transparency, and purpose not because they’re “soft,” but because they’ve seen the cost of burnout and job insecurity firsthand.

Thus, companies must remember that retention today won’t come from enforcing 9-to-5s. It’ll come from creating environments where learning, autonomy, and adaptability thrive. That means offering flexible work options, real upskilling programs, and roles that evolve with technology instead of competing against it.

And perhaps most importantly, Gen Z’s AI fluency isn’t a threat to traditional workforces, but an asset worth tapping into. An AI-literate generation can help companies innovate faster, implement smarter systems, and create real value from their million-dollar investments in digital transformation.

Maybe Goldman isn’t entirely wrong — Gen Z is struggling, but not for the reasons and not in the ways Wall Street thinks.

They’re navigating an economy that’s changing faster than the systems built to employ them. And rather than accepting that as a disadvantage, they’re being strategic by remaining flexible, AI-driven, and purpose-focused.

Whether that’s a strength or a red flag depends on who you ask. But one thing’s clear — Gen Z isn’t waiting for the job market to fix itself. They’re rebuilding it, waiting for the rest of the world of work to catch up and evolve to meet their needs.