More Than 4 Million Gen Z Americans Are Unemployed and Disconnected From School or Job Training

Gen Z is facing a difficult economic reality, one shaped by years of shifting job markets, rising living costs, and unmet promises about the value of higher education. Despite frequent criticism from older generations, many experts argue that this generation’s challenges stem not from laziness or entitlement but from structural issues beyond their control.

New data from the Social Science Research Council reveals that 4.3 million Gen Z Americans are classified as “NEETs” — short for Not in Education, Employment, or Training. This includes not only young adults struggling to find work after school, but also those who have stopped looking altogether. And it’s not limited to the U.S. In the U.K., more than 100,000 Gen Zers have joined the NEET category in the past year, and in Spain, NEETs include teens as young as 15 who have already opted out of both school and work.

Experts say this disconnect is partly due to long-held economic promises that no longer hold up. For decades, the standard advice was simple: get an education, and you’ll find stable work with a livable wage. But that idea has become increasingly unrealistic. Even for those with degrees, wages often fall short of covering basic living expenses — especially in large cities or even in smaller markets that were once considered affordable.

Lewis Maleh, CEO of recruiting firm Bentley Lewis, explained that while universities aren’t intentionally misleading students, the broader system fails to deliver on its implied guarantee that higher education leads to meaningful employment. That disconnect has left many graduates frustrated and without a clear path forward.

The situation is compounded by rising housing costs, student debt that’s nearly impossible to discharge, and stagnant wage growth. Independent economists suggest that if employment were measured based on whether workers earn enough to live on, the real unemployment rate might be closer to 24% — nearly as high as it was during the Great Depression.

Experts believe the solution isn’t to abandon education entirely but to rethink how we guide young people. Jeff Bulanda of Jobs for the Future says we need a national reckoning — one that values trade schools and vocational paths just as much as traditional four-year degrees, especially as AI reshapes the workforce. He stresses the importance of helping students make informed decisions about education, rather than continuing to promote a single track as the only road to success.

Until policymakers address the gap between expectations and reality, Gen Z will continue to face an uphill climb. The challenge ahead isn’t just about creating more jobs — it’s about rebuilding a system that works for everyone, not just the lucky few.