Gen Z Faces Job Market Turmoil: Degrees and Debt, No Jobs

Gen Z's Job Hunt: A Struggle Against the Odds

A prominent figure in the financial sector is shedding light on the grueling challenges that Generation Z encounters as they attempt to step into the job market. Quentin Nason, a former managing director at Deutsche Bank and currently the vice chair of the London Foundation for Banking and Finance, has voiced his concerns regarding the daunting application landscape that recent graduates must navigate.

A System in Crisis

Nason describes the job application process as a “meat grinder,” highlighting the drastic changes that have occurred over the past year. He noted in a LinkedIn post that positions that used to remain open for a month now close within hours. For instance, Barclays reportedly terminated its graduate intake just five hours after it opened, overwhelmed by the sheer volume of applications.

Nason has witnessed the struggles of job seekers firsthand through his involvement with City Pay it Forward, a UK initiative that aids high school and university students in pursuing careers in finance. He concluded that the current system is fundamentally flawed, stating, “There is little practical advice that seems to make any difference” beyond applying to numerous positions.

The Emotional Toll of Job Rejections

While the economic implications of this situation are significant, Nason is equally concerned about the emotional impact on young professionals. He pointed out that although difficult job markets are not a new occurrence, the present climate feels uniquely harsh. “Too many young people were steered into debt-funded degrees with promises that no longer hold true,” he lamented. “What worries me most is the human cost; this generation is not built to withstand that level of rejection.”

This sentiment resonates across social media platforms. On TikTok, many Gen Zers have shared their experiences, showcasing extensive spreadsheets filled with applications and collections of rejection notifications that seem endless.

Nason shared a personal anecdote, stating, “My own son just went through this meat grinder.”

AI: A Double-Edged Sword for Job Seekers

Another pressing concern Nason raised is the role of artificial intelligence in the hiring process. He argues that AI is complicating matters for both job applicants and employers, making a challenging situation even harder. Graduates are not only anxious about the potential of their roles being automated but also about the automated processes that dominate job applications.

Nason explained that AI screening tools now sift through thousands of resumes before any human review occurs, and candidates are often subjected to multiple automated assessments and video interviews before they ever speak with an actual recruiter. The rise of AI has also led applicants to utilize the technology for crafting flawless CVs and cover letters, resulting in a low barrier for submitting numerous applications.

This has created an oversaturated job market, where it’s common to see “five thousand candidates for five jobs.” He noted, “Add AI to both ends of the process, recruiters and applicants, and you get a pressure cooker of disappointment and frustration.”

The Urgency of Addressing the Job Crisis

Nason emphasizes that the job crisis facing Gen Z demands immediate attention, particularly as student loan debts begin to accumulate and frustrations mount. He pointed out, “Few realize those student loans compound daily from the first day of term. They are effectively PIK notes [Payment-In-Kind notes—debt instruments where interest is added to the loan balance rather than paid in cash].” He cautioned that only a select few who secure lucrative positions in finance will be able to manage these debts effectively.

As this generation grapples with unprecedented challenges in the job market, it is crucial to seek solutions that can alleviate their burdens before frustrations lead to a broader societal impact.