A new report from LinkedIn shows that Gen Z job seekers are spending more time looking for work than other generations, signaling a growing Gen Z workforce. According to LinkedIn Chief Economist Karin Kimbrough, “New grads are entering the most competitive job market in years. Competition has intensified, people are moving jobs less frequently and traditional career paths feel less linear.” The shift is already visible online. The number of users who add “founder” to their LinkedIn profiles has grown nearly 70 percent in one year and will nearly triple by 2022.
Beyond the traditional startup hub
This trend is strongest in parts of the US outside of traditional tech centers. While the San Francisco Bay Area and New York remain major startup hubs, cities like Dallas, Austin, Houston, Atlanta, and Miami have seen rapid growth in young founders over the past five years. Low living costs, tax benefits and strong local networks are attracting entrepreneurs to these cities, LinkedIn said. Another major reason is technology. AI tools and online platforms are making it easier for people to start businesses with less resources. Many new ventures are now completely online, allowing founders to work from anywhere.
Slow market
A broader labor market slowdown is also pushing youth toward self-employment, the report said. US jobs fell for the fourth straight month in April. LinkedIn data shows that hiring is down 8.5 percent from last year and well below pre-pandemic levels. Many Gen Z workers also feel uncertain about whether traditional jobs can meet their long-term career goals. The self-employed, however, reported higher levels of job satisfaction and stronger feelings of control over their work. This desire for flexibility and freedom is shaping how Gen Z works. A LinkedIn survey found that flexibility and financial independence are among the top reasons young people choose entrepreneurship. Many people are also managing multiple income streams simultaneously.
AI reducing constraints.
AI is playing a major role in this transformation. 68 percent of Gen Z entrepreneurs surveyed said AI and digital tools helped them start or run their business. The report also highlighted the dangers of entrepreneurship. Statistics from the Commerce Institute show that about 20 percent of new businesses close within their first year, while about half fail within five years. Still, many young founders find that creating something of their own feels less risky than waiting for the job market to improve.For some, self-employment is a choice driven by ambition and flexibility, and for others, it is a response to limited opportunities. Either way, work for this generation is no longer just about waiting for a job offer, but also about creating new ways to work and earn.
