Millennials currently dominate the American workforce, but Generation Z is rapidly catching up.
Generation Z, comprising 70 million individuals born between 1996 and 2012, includes today’s high school and college students, as well as most people in their 20s. As Baby Boomers and Gen X retire in larger numbers, this emerging generation has already surpassed Boomers in the workplace, constituting approximately 18% of the U.S. workforce. By 2030, Gen Z’s share is projected to reach 30%.
As Gen Z embarks on their careers, they bring fresh expectations to the workplace. Their quest for stability leads them to prioritize retirement benefits and expect employers to help build a solid foundation for post-career life. They seek financial security, competitive salaries, and a sustainable work-life balance. Additionally, they want their company’s values to align with their own, with a strong preference for employers committed to making a positive impact on current issues.
Here are three trends to watch as more Gen Zers enter the workforce in 2025:
1. **Increased Competition in the Early Talent Job Market:**
Despite a bullish economic outlook for 2025, job availability continues to decline. This trend has made the class of 2025 pessimistic about their career prospects, with 63% citing stiff competition for jobs as their primary concern. Consequently, early talent will need to be more flexible about job choices, considering a broader range of companies and industries. This shift could benefit employers and sectors that have traditionally struggled to attract college graduates.
For instance, computer science and accounting are the fastest-growing undergraduate majors for 2025. While many computer science majors aim for Big Tech, a growing number may explore opportunities in small businesses and sectors like financial services, government, and manufacturing, especially if tech hiring remains slow.
Flexibility also means early talent might consider new locations for living and working. The class of 2024 showed interest in cities like Houston, Atlanta, Charlotte, and Dallas—areas offering big opportunities with a lower cost of living compared to New York and San Francisco.
2. **Renewed Interest in Office Work:**
The allure of remote work seems to be fading. On the Handshake platform, only 4% of job postings this year specified remote work, down from nearly double that two years ago. Gen Z prefers flexible options, aligning with their desire for autonomy over work and personal lives.
Employers are increasingly open to hybrid roles, with nearly 1 in 5 postings on Handshake offering both remote and hybrid options. Given the choice, Gen Z often prefers the office, valuing in-person networking, camaraderie, mentorship, and workplace relationships.
3. **Blending Learning and Working:**
Gen Z is confident in their current skills but recognizes the need for continuous learning. The majority plan to acquire additional tech skills in the coming years, not by quitting their jobs for graduate school, but by taking classes and earning certifications while continuing their careers.
Gen Z values upskilling opportunities, with nearly two-thirds of job-seekers on Handshake viewing these skills as essential to career success. Almost 9 in 10 undergrads consider these benefits important or essential when evaluating job opportunities. This learning mindset, coupled with new skills and knowledge, will make Gen Z more valuable to their current and future employers.
While Gen Z is still establishing itself in the workforce, understanding their perspectives and expectations can help employers attract and retain top early talent. By meeting Gen Z halfway, employers can foster a more collaborative and productive work environment.