Graduation is a time for optimism and expectation – and for Gen Z graduates in 2025, the celebration is tempered with a harsh salary reset. According to a recent survey of approximately 3,000 rising and recent graduates, the salary shock is a deep disconnect between expectations and what the market will bear. How can ambitious grads navigate from campus to career – when the pot of gold at the end of the rainbow is smaller than expected?
Thinking about the future, at graduation.
Optimism is high for new grads, as 82% expect to start working within three months of graduation. When even Harvard MBAs are struggling to find work, the current statistical enthusiasm might be tempered, as ambition meets market conditions. In February, the unemployment rate for workers under the age of 24 was 9.7% – more than double the national average at that time. About 20% of all job seekers have been looking for work for more than 10 months – the elongated hiring process has been well-documented in Forbes.
Susan Levine, CEO of Career Group, tells Fortune that expectations and flexibility need to be adjusted, for Gen Z grads entering the workforce. “Are candidates realistic? What are their salary expectations? Are they flexible? Are they turning down jobs being offered to them? While the hiring process is taking longer now, that alone wouldn’t explain why it might take several months for a candidate to secure a role.”
Beyond Salary: What Gen Z Grads Value in the Workplace
According to the ZipRecruiter survey, here’s what the class of 2025 is looking for:
- 90% of Gen Z college students say that schedule flexibility is important
- 82% of grads hope to work remotely (at least one day a week)
- More than half of rising and recent grads would support unionizing (if deemed necessary), although enthusiasm for this topic was listed as “modest”
- Almost 47% of new grads believe that their field will have fewer jobs, due to Artificial Intelligence (AI)
Salary Shock Facing Gen Z: 1/3 Lower than Expected
Rising grads reportedly expect to make $101,500 per year (on average). However, the average starting salary for the grads in this survey was $68,400 – a difference of over $33,000. As a result, 42% of grads report that they have had to lower their lifestyle expectations when confronted with actual salary reality. Only 18% of respondents report that their salary offer exceeded their expectations.
Uncertainty continues to color the job market, despite recent positive reports on job growth. The vastness of the U.S. economy can often reflect a macro-economic picture that is more resilient than a local (or personal) perspective. Nevertheless, opportunities do exist – especially for Gen Z graduates who are able to work within existing market conditions.
Bad Behavior? Or a Bad Market? Gen Z at Work
Headlines are creating headwinds for Gen Z. Fortune reports that nearly a third of Gen Z and young millennials have participated in “career catfishing” – ditching a job in the middle of the interview process. Why? Responses include “just wasn’t feeling it” and “disliked the atmosphere”. Bailing out in the middle of the process, without communicating, isn’t professional – and can leave a bad taste in a boss’s mouth. Perhaps that’s why 37% of managers would rather hire AI than offer jobs to Gen Z.
However, the market for recent grads could be on the upswing. The National Association of Colleges and Employers (NACE) says that there’s good news ahead. Nearly 90% of employers anticipate increasing (24.6%) or maintaining (64.6%) hiring levels for the college Class of 2025 compared to the Class of 2024. Only 11% of respondents are expecting to decrease hires. Still, inside every market statistic is an individual experience. Are Gen Z grads able to share their experience in a way that’s meaningful – because they can focus on what really matters?
How Gen Z Grads Can Defy Statistics
Stella Adler famously said, “You’ve got to have a talent for your talent.” In business, you get what you negotiate: that’s the talent that everyone needs. For Gen Z grads, negotiation starts best with a little understanding – an understanding of what certain roles pay.
The real talent for Gen Z comes when new graduates can express their professional value in a way that shifts past education into current service. For Gen Z, your value is more than what you have learned, if you understand how to communicate your purpose. Beyond degrees and GPAs, what employers really want to know is: how can you help us? What you’ve studied is not the same as the impact you can create.
For the college students that I work with, the conversation centers on the ability to create a vision – not something grand and poetic, but something viable and realistic. Sharing that vision in a way that is believable and compelling is a skill that benefits every major (and even those who don’t attend college). The talent needed is always a talent for communication. On your résumé, your LinkedIn profile, your cover letter or your online application, each step is a part of the conversation around your career. Don’t let market reports, reputation or rumors stop you from becoming who you were meant to be. At the heart of the job search for Gen Z, communication is the key.
