Educación y Formación
Challenges of Generation Z in Securing Their First Job: Impact of Artificial Intelligence and Overqualification
Paloma Firgaira
2025-12-23
5 min read
Generation Z and the Labor Market: Are They Ready for a System That Doesn't Wait for Them?
Despite being the most educated generation, Generation Z faces a labor market that seems unprepared to harness their talent. A recent report from Criteria Corp, a U.S. talent management company, reveals that 70% of recruiters struggle to find candidates with the skills companies demand, reigniting the debate over the supposed "lack of preparedness" among young people and the talent shortage.
However, this report is based on perceptions rather than objective hiring data. As the Ministry of Inclusion warns in its report "Youth and the Labor Market," such narratives often blame individuals for structural issues like temporary contracts or lack of opportunities. Nevertheless, the data invites reflection on the true state of the labor market and the situation of young people.
The latest Active Population Survey from the INE places youth unemployment at 24.9%, the lowest figure in ten years, but still the highest in the European Union. University graduates access better employment rates, although temporary contracts and low wages prevail. According to PwC's "Youth and Business" report, poor working conditions for young people cost 2.27% of GDP, reflecting a system unable to absorb trained talent or adapt education to current needs.
While Generation Z prepares for a hybrid, digital, and global work environment, many educational institutions remain anchored in outdated models. For these young people, training in digital and specialized skills is key to standing out in a market that values innovation beyond the traditional curriculum.
Dimas Gimeno, former CEO of El Corte Inglés, summarizes it: "Generation Z is very prepared, more than previous generations, but they need support from companies to thrive in such a competitive environment."
Digitalization has led to new professions unimaginable a decade ago: from community managers and app developers to Big Data analysts, blockchain experts, drone pilots, or virtual reality creators. Many of these jobs, often freelance or project-based, escape traditional hiring channels and require different skills.
For HR departments, a resume filled with courses and certifications is not always synonymous with professional maturity. Meanwhile, many young people perceive traditional companies as slow and disconnected from the innovative reality.
This is compounded by the automation of selection processes: according to Cegid, 35% of HR departments already use generative AI to filter candidates, and 61% plan to implement it systematically. For many young people, this means their first contact with a company is through an algorithm.
Beatriz Gómez, an HR expert, warns: "Being evaluated by AI can be demotivating, and for companies, it poses the risk of losing talent due to erroneous algorithmic decisions."
The "State of Talent Report 2025" from Signal Fire shows that hiring profiles with less than a year of experience fell by 25% between 2023 and 2024, despite the recovery of the tech sector. Major tech companies reduced the hiring of these profiles by 24.8%, and startups by 10.7%. In contrast, profiles with 5 to 10 years of experience grew by 33.9% in large companies and 1.3% in startups.
Professor Pablo Foncillas explains: "The message is clear: if you don't have experience, don't bother. The growth of hiring in startups was only 0.4%, compared to 15% in large companies, focused almost exclusively on established talent. The market rewards those already inside and makes it difficult for newcomers. While there isn't enough historical data to assert that AI eliminates entry-level jobs, the paradox is evident."
Foncillas adds: "Companies need innovation, associated with young people, but they eliminate the spaces where this arises. We forget that no senior professional was born knowing. If this phenomenon is occurring, a new pact is urgent: invest in training and accept that learning takes time, without dismissing what isn't profitable in the short term."
The "degree inflation" has become a cultural response to uncertainty, but accumulating degrees does not guarantee stability. Employability depends as much on educational level as on the ability of institutions to connect training and business. Without that coordination, young people are trapped between the demand for experience and over-qualification as a precarious refuge.