Generation Z Turns to Entrepreneurship Amidst AI Boom and Challenging Job Market

Gen Z workers are increasingly opting for entrepreneurship as AI and a tough job market eliminate entry-level opportunities. With hiring at its lowest since 2020 and unemployment for 22–27-year-olds at a pandemic-era high, graduates like Ashley Terrell are bypassing traditional corporate roles. Terrell, who graduated in 2024, built a marketing portfolio by creating videos for brands, eventually landing a part-time marketing role. The trend reflects a broader shift: young workers feel the rules for finding a job have changed, with entry-level postings declining and expectations rising.

AI is both a threat and a tool in this shift. While it erodes entry-level positions, it also enables young entrepreneurs to compensate for missing skills and scale their efforts. Workers like Suhit Agarwal, a 2025 USC graduate, are leveraging AI to start businesses when traditional jobs are scarce. This 'make your own ladder' approach is gaining traction as Gen Z seeks purpose, flexibility, and control in their careers, with many feeling forced into self-employment by a system that no longer guarantees stability.