Younger members of Gen Z traverse a ‘broken marketplace’ on path from school to work

July 16, 2025 at 13:33 PM EDT

Young Americans entering the workplace today are finding the job market a difficult one as companies are reluctant to hire in the face of a number of economic uncertainties. But for members of Gen Z still behind them in school, that path to a rewarding career is only going to get rougher, a new study says.

Many of the people and institutions designed to support young adults on the journey from school to work are fundamentally out of sync with the rapidly shifting modern economy and their challenges are poised to get worse as advances in artificial intelligence further impact the labor market, the report titled “The Broken Marketplace: America’s School-to-Work Crisis” found.

The Schultz Family Foundation partnered with HarrisX to produce the report using a sweeping national survey to better understand the barriers, needs and opportunities facing young people in the United States age 16 to 24 as they navigate from high school to careers, recognizing that this journey is often critical in shaping a person’s economic mobility.

“Today’s young people are eager to succeed, but the systems meant to support them are falling short,” said Vivek Varma, CEO of the Schultz Family Foundation, in a press release. “This research provides key insights to design a better marketplace that is built for more informed choices, accessible resources, lifelong learning, flexible pathways and opportunity accessible to all.”

Exacerbating the problem:

Employers want experience, but few provide it
Parents offer advice shaped by their own past, even as the world their children face has changed dramatically
Navigators — educators, guidance counselors, community leaders and career and workforce specialists — often lack the time or tools to help students plan for what comes next. Each group assumes someone else is filling the gap.

“What we found is that employers, educators and parents are caught in a finger-pointing loop in the broken marketplace, each expecting the other to fill the gap,” said Dritan Nesho, CEO and head researcher at HarrisX. “The result is a vacuum of relevant and reliable support for young adults, which has pushed them increasingly towards social media and away from traditional guidance systems.”

Gen Z on their own

More than four in 10 young adults surveyed said both the education system (43%) and the employment resources (45%) to which they have access are broken and are not providing them with effective guidance.

They voiced worry that employment will become even more difficult as AI impacts the job market: Nearly half (46%) said they feel unprepared, or are unsure of their preparation, for jobs of the future.

“The findings illuminate how a broad swath of Generation Z remains far from tapping its full potential because of systemic inertia that leaves too many young people stranded at the moment they should be starting their careers,” said Rajiv Chandrasekaran, a managing director of the Schultz Family Foundation.

“This broken marketplace poses a significant risk to building the future workforce our nation needs, particularly at a time when the country is seeking to increase domestic industrial production.”

Among the recommendations in the report to address the issues:

‍Employers can build real pathways by investing in training, creating accessible entry points, and clearly signaling what skills and experiences matter
‍Navigators can be supported to help students navigate, not just graduate, and to better connect what happens in school with what comes next
‍Parents can guide their children more effectively by using up-to-date tools and understanding the realities of today’s career landscape

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Younger members of Gen Z traverse a ‘broken marketplace’ on path from school to work

Gen Z on their own

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