Where Layoffs Are Happening: Why Gen Z Is Anxious About Work
Gen Z and Millennials are shaping cultural headlines, from declining birth rates to the changing landscape of dating apps. But one of the most pressing concerns is the job market.
https://www.newsweek.com/gen-z-living-fear-layoffs-2094034
Much of Gen Z’s anxiety comes from the industries they are entering. Sectors like tech, retail, media, and government have all experienced significant job losses over the past year. Young workers tend to be overrepresented in these fields, making them especially vulnerable.
"Tech has seen one of the biggest booms in layoffs," said Rice. "Is it a coincidence that it's the sector developing AI and starting to think it needs fewer people? No, I don't think it is."
Jason Leverant, president and COO of staffing firm AtWork Group, agrees. "Younger workers are definitely being disproportionately affected by what's happening in tech," he told Newsweek. "This is likely shaping the fear and uncertainty we’re seeing from Gen Z." Still, he suggested that this disruption could push young professionals to consider other industries where their skills are better aligned.
And it’s not just tech. "Media has been laying people off en masse for 20 years," Rice said. "Add the government layoffs, and it creates a ton of uncertainty."
The Financial Weight on Young Workers
This job market pressure doesn't exist in isolation. Young professionals are also contending with massive student debt and soaring living costs, especially in urban areas.
"Student debt is astronomical," Rice said. "The average graduate leaves school with about $77,000 in loans. Rent is out of control in most major cities. This generation doesn’t own assets because they simply can’t afford them."
He pointed out that housing prices have outpaced income: "Since 1985, the average home price has gone up 408 percent, but median income has only increased 241 percent."
In places like New York City, even a seemingly decent salary might not go far. "If you're a young person making $80,000 a year in the NYC metro area, and your CEO has mandated in-office work while a studio apartment costs $3,200 a month, then yes, an economic downturn feels threatening," he added.
The AI Uncertainty Factor
Another layer of anxiety comes from artificial intelligence. In a recent World Economic Forum survey, 41 percent of global companies said they expect to reduce their workforce in the next five years due to AI.
"Is it a coincidence that tech companies are building AI while laying people off? I don’t think so," said Rice. "It creates this fear that you're training for a job that might not exist by the time you're skilled at it."
He emphasized that AI's impact is especially visible in creative, administrative, and technical support roles—jobs once seen as stable entry points. "A lot of early-career positions are being reimagined or eliminated. That makes it harder for young workers to even get a foot in the door."
Still, Leverant cautions against panic. "AI is a powerful tool for improving efficiency, but it’s not yet taking jobs outright," he said. "Many roles still require human input."
Yet the speed of change is overwhelming. The lack of clear pathways to adapt to AI disruption only adds to the psychological toll.
"Right now, we don’t have universal AI literacy programs or standard upskilling tracks," Rice said. "All we have is a stream of headlines and speculation—and that’s enough to make anyone anxious, especially if you’re just starting your career."