Why is the US job market so bad for young people?
The market’s optimism gap between young and old is the highest in the world
It has generally been the case that younger Americans are more optimistic than their older counterparts about finding jobs. But a recent survey shows that tune has changed in a major way. Perceptions have gotten so bad that the gap between how young Americans and older Americans view the job market is now the widest in the world. There are several reasons why people in their early 20s can’t secure jobs, and AI isn’t the only factor.
What did the commentators say?
Many of these younger Americans “have higher education and aren’t yet working full time,” Benedict Vigers, a senior news writer at Gallup, said to Axios. AI definitely plays a part in this less-than-stellar job market, as it is “gutting entry-level roles,” Sam Hiner, the co-founder and executive director of the Young People’s Alliance, said to the outlet. The “corporate landscape” is also “often heavily reliant on social capital over qualifications,” further contributing to the “pessimism.”
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A higher competitive edge among young people is additionally making it harder to secure jobs. “You speak with your peers, and you realize that every single one of us are competing for the same opportunities,” Amelia Sexton, a 19-year-old sophomore at the University of North Carolina at Chapel Hill, said to Axios. Gender may weigh in as well, as the “American labor market is tilting away from men,” said The Wall Street Journal. In the past year, nearly all job growth “has come from healthcare and social assistance, a sector with a dearth of men,” and “sectors with heavily male workforces have been losing jobs.”
What next?
It is clear from the data that there is a “generational rift in Americans’ views of economic opportunity,” said The Associated Press. With the midterm elections on the horizon, the split among young and old is “likely to continue fueling generational divides in politics, where younger voters have focused on economic issues such as housing costs and have registered less faith in institutions.”
The greater optimism among older generations also comes from people who “aren’t actually job hunting — they’re retired or already employed, so they judge the market abstractly without personal stakes,” said Entrepreneur magazine. Older Americans are “far more likely to own homes and have savings, insulating them from the housing and cost-of-living shocks driving young workers’ pessimism.”
The negativity felt by young job-seekers is an “incredibly new phenomenon,” Vigers said to the AP. Gallup’s 2025 poll was the first time the organization found younger Americans to be more pessimistic than people in other countries about job prospects, and that trend looks primed to continue. “Has this happened in most other advanced economies? The answer is a resounding no.”
