Youth unemployment has reached its highest level in nearly five years, with youth unemployment rates showing that people aged 16 to 24 are bearing the brunt of a weak employment market that shows few signs of improving for Gen Z jobseekers.

The Scale of the Youth Unemployment Crisis

Official figures paint a worrying picture for young workers. The unemployment rate for those aged 16-24 has climbed to levels not seen since the COVID-19 pandemic, when lockdowns devastated entry-level positions and internship opportunities. Unlike previous economic downturns, the current youth unemployment crisis is occurring while the overall economy shows signs of growth, creating a paradox where jobs exist but remain inaccessible to younger applicants.

The search is soul-destroying, says one 22-year-old graduate who has applied for over 200 positions since completing their degree six months ago. Despite having relevant qualifications and internship experience, they have received only three interviews and zero job offers.

Why Gen Z Is Struggling to Find Work

Multiple factors contribute to the Gen Z job search struggles. Employers increasingly demand years of experience for entry-level positions, creating a catch-22 where graduates cannot get hired without prior work history. The decline of structured graduate schemes and training programs has removed traditional pathways into professional careers.

According to BBC business coverage, automation and AI are eliminating many traditional entry-level roles that previously served as stepping stones for young workers. Customer service, data entry, and administrative positions that once provided first jobs are increasingly handled by software, leaving fewer opportunities for those starting their careers.

The Mental Health Impact

The psychological toll of prolonged job searching is significant. Young people report feelings of worthlessness, anxiety, and depression as rejection emails accumulate and savings dwindle. The constant need to present an optimistic, motivated face to potential employers while internally struggling creates emotional whiplash.

Mental health professionals report increasing numbers of young clients whose primary source of distress is employment-related. The gap between educational achievements and career outcomes leaves many feeling they have failed despite doing everything society advised them to do.

Government Response and Solutions

Policy responses to the youth unemployment crisis have been limited. Proposed increases to the youth minimum wage may be delayed, according to government sources, leaving young workers struggling with wages that have not kept pace with inflation. Apprenticeship programs exist but often lead to low-paying positions that do not justify the training investment.

Some economists argue for targeted interventions like subsidized employment programs, expanded public service jobs, and tax incentives for companies hiring young workers. Without such measures, the current generation may face permanently scarred career prospects from entering the workforce during this difficult period.

Adapting to the New Reality

For Gen Z jobseekers, adaptation is essential. Many are pursuing side hustles, freelance work, and entrepreneurial ventures rather than waiting for traditional employment. Others are returning to education for advanced degrees or vocational training that might improve their prospects.

The crisis is forcing a generation to reconsider assumptions about career progression and success. While the immediate outlook remains challenging, the resilience and creativity young people are developing may ultimately serve them in an economy that increasingly rewards adaptability over traditional credentials.