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More Gen Zers Will Enter the Workforce in 2025, and Here's What to Expect

By:
Karen Sibayan
Published Date:
Dec 26, 2024

 

Although millennials are still dominating the U.S. workforce, Gen Z is not far behind, according to Forbes, which enumerated three trends to watch for as more Gen Zers are expected to join the workforce next year.

Gen Z, comprising the 70 million young individuals born between 1996 and 2012, includes today’s high schoolers, college students and most everyone in their 20s. As more and more Baby Boomers and Gen X retire, this early talent generation has already overtaken Boomers in the workplace. Gen Z currently makes up roughly 18% of the country's workforce, with them expected to reach 30% by 2030.

As Gen Zers start their careers, they bring new expectations to the workplace. Their search for stability will lead them to prioritize retirement and expect their employers to assist them in establishing a solid foundation for life after their careers. According to Forbes, they are seeking financial security, competitive pay and a sustainable work-life balance as well as employers with values that align with their own. Most say it is imperative that their company commits to making a positive impact on today's issues, Forbes reported. 

Forbes listed three items to watch for as more Gen Zers enter workplaces in 2025, which are:

The early talent job market will become more competitive. Economists seem quite bullish on the country's economy for 2025. However, GDP growth seems to not automatically result into the job market loosening. Data from both the federal government and Handshake paint a similar picture, which is that job availability continues to decline.

The downward trend has created pessimists in the class of 2025, Forbes said. Of the close to 6 in 10 who have worries about starting their careers, most (63%) cited stiff job competition as their rationale for their negative view. This means early talent will have to be more flexible regarding the jobs they choose to pursue and entertain a wider range of firms and sectors. This perceived drawback can actually be something positive for firms and fields that have grappled with recruiting college graduates. 

Take computer science, for example, which is sharing the top spot with accounting as next year's fastest-growing undergraduate major. Although roughly half of computer science majors expect to follow the Big Tech route, an increasing number might take their talents to other fields such as financial services, government and manufacturing, particularly if tech sector hiring remains slow.

Flexibility also means early talent might consider new places to live and work. The class of 2024 eagerly searched for jobs in Houston, Atlanta, Charlotte and Dallas, which are cities that are not as big or as high cost as New York and San Francisco. With student debt and financial stability front and center issues for 2025 graduates, expect early talent to prioritize more affordable locations that can still offer good opportunities.

Being in the office will become in vogue. The inclination to work remotely seems to have decreased. On the Handshake platform, only 4% of job postings in 2024 specified remote work, which is roughly half that of just two years ago. However, Gen Z seems to be going against the work-at-home / work-in-the-office binary. They still want flexible options, which goes hand-in-hand with their wanting to have increased independence when it comes to their work and personal lives.

The good news for them is that employers today are more accepting of hybrid roles. Close to 1 in 5 postings on Handshake offered both remote and hybrid choices. However, with that option, Gen Z will usually choose the office. Early talent is keen on establishing camaraderie, being mentored and building workplace relationships. They are coming to the conclusion that it is easier and more productive to network in person.

Learning and working will continue to blend. Gen Z is confident that the skills they possess can go a long way for them to get the jobs they want, but they are aware that their current skills will outlive their usefulness. That’s why the majority of early talent say they plan to learn additional tech skills within the next several years. 

That does not entail quitting their jobs and enrolling in graduate school. Instead, early talent will gain both technical and durable skills by taking classes and earning certifications and new credentials while continuing their careers.

Gen Zers are more inclined to mix learning with work and they want their employers to assist with their upskilling. About two-thirds of those looking for jobs on Handshake and who search for jobs with upskilling opportunities view those skills as essential to their success in their chosen field. This is so much so that close to 9 in 10 undergrads regard these benefits as either important or necessary when assessing job opportunities, The learning mindset together with the new skills and knowledge they acquire will make Gen Z more valuable to their current and future employers.

Gen Z has yet to establish themselves in most companies. However, they already have developed a reputation as being hard to work with. Through understanding where Gen Z is coming from and what their expectations are for their careers and from their companies, smart firms looking for top early talent could meet Gen Z halfway, or maybe a little more, Forbes said.