USA 
United Kingdom
Amid plentiful reports of the difficulties presented by Gen Z hires, the harsh realities of entering the workforce remain an obstacle for them with a decline in entry-level openings, and degrees diminishing in value among the biggest challenges.
According to LinkedIn’s latest Grad Guide, however, it’s not what you know, it’s who you know, with almost half (44%) of Gen Z saying not having the right network is the biggest barrier to landing an entry-level role.
Entry-level hiring has declined 6% year on year against 10% for mid-level roles.
It points to a narrowing entry point into the workforce for Gen Z graduates, where access is constrained and the recruitment process is proving to be barrier to success.
Gen Z mindset reshapes access to work
As a result some 21% are have decided to create their own opportunities with side hustles or starting a business. They are increasingly creating their own paths into the workforce rather than waiting for a traditional 9-to-5 job to turn up.
The number of LinkedIn members adding “founder” to their profile in the US has surged by 69% year-over-year and nearly tripled since 2022, while some 22% are building apps, websites or other projects to showcase their skills.
Entering one of the toughest markets in years, Gen Z is widely reconsidering traditional career paths. And in the face of increased automation and the uncertain future created by AI adoption, 72% of young office workers are considering a switch to skilled trades, such as electrician, mechanic or construction worker among others. In fact, 12% have already done so.
And if they having taken the leap all the way, 32% are taking roles outside their field to build in-demand skills.
The hiring process is not the only barrier to success, however, with a recent Robert Half report pointing out that 53% of Gen Z say finding new connections is their biggest barrier in networking - compared to 44% for millennials, 42% for Gen X, and 29% for boomers.
Gen Z are also the least likely to report that personal referrals have helped advance their careers.
Limited access through traditional networks is pushing early talent toward alternative routes, whether through side hustles, skills-building, or switching career tracks entirely.
Skills-first hiring gains traction
LinkedIn CEO, Ryan Roslansky, said: “I think the mindset shift is probably the most exciting thing because my guess is that the future of work belongs not anymore to the people that have the fanciest degrees or went to the best colleges.”
LinkedIn founder, Reid Hoffman added: “What you should take forward from your college degree isn’t necessarily the thing you learned in X-101. It isn’t specific degrees, specific courses, [or] even necessarily specific skills that are relevant to you, it’s your capacity to say, ‘Hey, here is the new tool set, here’s the new challenge.’ That is actually what the future work’s going to look like.”
He added: “One thing is to not focus on the degree, but to focus on how you learn and to be continually learning.”
Turning workforce data into early warnings for high-cost employees
The stats back up his argument with around 90% of CHROs now saying their organization has a greater need to hire outside the four-year college degree, according to an ETS report.
Around 79% of HR professionals also predict that in the near future, they will struggle to find strong candidates for their open roles, and around 81% of global employees believe that by 2035, evidence of new skills acquired will be as valued as a university degree.
Michelle Froah, Global Chief Marketing and Innovation officer at ETS, said: “This is not about replacing degrees - it’s about balancing them with real, demonstrable skills that keep people employable and businesses competitive.”
Michael Bush, of Great place to Work, said the world’s leading companies are “not even talking about degrees anymore. They’re talking about skills.”
The shift away from degrees toward skills is seen as a current response to the same pressures Gen Z are already reacting to, such as limited access, changing expectations, and the need to build capability outside traditional career pathways. If the lack entry -evel positions and their value as a career gateway is not to become a full-blown crisis for employers and employees, further new approaches need to be considered.
Gen Z hiring: five key stats
44% of Gen Z say not having the right network is the biggest barrier to landing an entry-level role
Entry-level hiring is down 6% year-over-year, compared to a 10% decline in mid-level roles
21% of Gen Z have started a business or side hustle to kickstart their career
72% of young office workers are considering switching to skilled trades
Around 90% of CHROs say their organization has a greater need to hire outside the four-year college degree
