For months, Gen Z has been told that artificial intelligence is coming for their jobs. But a new study suggests the real problem may be far more basic: there simply are not enough jobs to go around.
According to the Federal Reserve Bank of St. Louis, the shortage of job openings in the U.S. is playing a bigger role in Gen Z unemployment than their ability to work with AI.
The study found that unemployment among 18- to 24-year-olds rose by 2.9 percentage points because of job scarcity.
In comparison, the shift by employers toward more AI-focused roles contributed to a 1.1 percentage-point increase.
In other words, young workers are not just losing out because they lack AI skills. They are also entering a tighter job market where fewer companies are hiring entry-level talent.
The impact is being felt even among recent college graduates. While many young professionals are rushing to add AI tools to their resumes, the study suggests that a lack of available openings remains the bigger hurdle.
The findings challenge the popular narrative that AI alone is responsible for Gen Z’s struggles in the job market.
For many young jobseekers, the bigger crisis may not be technology replacing them, but employers simply not opening the door.
