The formal labor market is not a static phenomenon, and its requirements transform over the years, directly impacting the lives of millions of workers, especially young people who recently graduated. Currently, our society is facing a complex paradox regarding the labor market, perhaps a little comical given its sheer absurdity. There have never been so many young people with university degrees or specializing. It has never been so difficult to enter the formal job market with security.

Generation Z is one of the most proactive in seeking qualifications in various forms, whether through university, technical courses, or specialization programs. Even so, many of them are facing barriers to entering the job market. It is worth noting that this phenomenon does not represent an individual failure; after all, in a way, we would all be failing.

The problem is not a lack of qualifications among the new generation, but a structural transformation of the labor market that has reduced entry points and transferred the cost of training to the workers themselves. The growing difficulty young qualified professionals face in entering the labor market is neither an isolated nor a country-specific phenomenon but part of a broader structural distortion that has reshaped employment systems across economies over the past decades.

The promise of qualifications

For many years, particularly in previous generations, higher education was promoted as an indispensable mechanism for social mobility. University degrees were believed to open doors to employment and provide economic stability. Across many countries, the expansion of universities and the proliferation of educational programs contributed to the massification of higher education and increased overall schooling levels. Today, however, higher education is no longer a guaranteed springboard to a stable economic life; it has become a minimum requirement for entering the workforce rather than a pathway to opportunity.

Despite the growing number of graduates and the rising qualifications of young people, structures for entering the labor market have not kept pace. What was once a tangible expectation of opportunity is now often perceived as a false promise, as the job market fails to provide sufficient entry-level positions.

It is important to note that this gap is not solely the responsibility of educational institutions. The primary challenge lies within the labor market itself, which does not generate adequate opportunities for young people to apply their skills and build careers.

The paradox of entry-level jobs

In the past, we used to hear stories from our grandparents, relatives, or acquaintances about how they built careers in their fields. Surprisingly, many joined their companies at a young age and spent many years there, progressing from apprenticeship to permanent employee, eventually rising through the ranks. Today, the reality is quite different.

In general, companies are no longer willing to hire someone without prior experience. They prefer to hire someone ready to work, as this reduces company expenses related to the employee. From an economic standpoint, this decision makes sense. But it doesn't make sense when applied to entry-level positions, since these are precisely a young person's first contact with the job market.

The paradox unfolds as follows: You are a recent graduate looking for your first job in sector X. All these years, you've dedicated yourself solely to your studies; now you can finally take your first step into the job market. You open your computer, search for entry-level job openings, and read the company requirements. They ask for at least 2-3 years of experience.

This is one of the biggest problems in the modern labor market: the requirement of prior experience for positions that should be the worker's first experience. This applies to entry-level positions and even internships. Many find themselves with the same thoughts, "To get a job, I need to work first," or “How am I supposed to gain work experience if no one ever hires me?”

The phenomenon is not random; it is general and precisely economic. Over the years, one can observe within companies a reduction in internal investment in employee training, pressure for immediate productivity, lean business structures, and an outsourcing of training costs.

Risk transfer

The responsibility that companies once held now rests exclusively with the individual. The risk of employability, of being hired or not, depends 100% on individual efforts and no longer on the corporate sector. Companies no longer train workers; candidates need to be, in a way, the final product, the complete package.

A university degree alone is insufficient. Currently, the new generation also needs to have other paid supplementary courses, internship experience, a solid portfolio, fluency in two or three languages, a strong presence on digital work platforms, contacts, and references. That sounds exhausting, doesn't it? Accurate. Especially if we look at life today, at the hustle culture. Often, even with all these factors combined, job security is not guaranteed.

The reorganization of contemporary capitalism and labor encompasses many characteristics, but it is far from having social justice. That's why we see so many young people killing themselves to pay for extra courses, accepting poorly paid internships for the experience, and being held hostage by temporary contracts that offer no stability whatsoever.

Informalization of work

The uncertainty of financial security, the instability of the labor market, and the difficulty of young people entering formal employment force people to migrate to platform jobs and informal, underemployed work. The increasing number of people working with digital platforms and through the internet is no coincidence; it's not just a matter of technological revolution.

The difficulty of accessing formal employment during the advancement of the digital world fostered what we know as the gig economy. This type of work is characterized by the performance of temporary activities, payment by the hour or project without a traditional employment contract, greater flexibility in working hours, but less job security. Just look at the number of recent graduates who migrate to delivery services, ride-sharing apps, or freelance work.

Another well-known phenomenon is the digital economy. In recent years, there has been an explosion of digital influencers occupying social media. Also known as content creators, they generate written and audiovisual content, routines, and tips, or simply monetize by sharing their daily lives. They may represent brands or establish partnerships with companies and products, influencing consumer choices.

The problem with the boom in this type of service is that anyone can become an influencer today, and this workforce doesn't necessarily have qualifications. Many people gain visibility and money on digital platforms even without academic training, creating the illusion that working online generates easy income.

This only reinforces the precariousness of formal work and greater instability in traditional entry-level opportunities. While it is indeed possible to earn income online, the influencer market does not structurally absorb skilled labor, much less replace it. It does not contribute to formal and lasting opportunities for those who aim to build a career and are qualified to do so. This is an infinite loop, because while it contributes to this discussed scenario, the influencer market itself is a collective reflection of people who faced scarcity in the formal market and sought refuge on the internet.

“Unseen” impacts on the broader economy

Older generations may misunderstand the challenges many young people face today. To them, Generation Z is spoiled, lazy, and doesn't want to work. Quite the opposite, all they want is the opportunity to start. This isn't a generational drama but a real systemic problem.

Data helps illustrate this reality. Youth unemployment rates remain significantly higher than the overall unemployment rate in many countries, especially Europe. According to Eurostat, in 2025, the youth unemployment rate in the European Union reached 14.7%, more than double the overall unemployment rate of 5.9%. This means an average of approximately 2.86 million unemployed young Europeans.

These numbers are not just theories; they are practical reflections of the distressing reality surrounding Generation Z. This structural failure of the labor market and the lack of stable integration of these young people imply macroeconomic effects that are not so invisible in society. Current job instability is causing the new generation to postpone buying property, delaying marriage or starting a family, consuming less, saving more, and investing less.

These phenomena have a direct impact on the real estate market, the birth rate, future productivity, tax revenue, and the sustainability of the social security system. The effects ripple through a reduction in domestic market demand, decreased dynamism in the real estate market, and a reduction in aggregate productivity. Being hired for jobs with poor conditions impacts an entire generation in the long term. Economists call this labor market scarring, which occurs when there are lower wages throughout one's career and a more unstable professional trajectory.

Not to mention the mental and emotional impacts that continue to increase among the younger population. There is constant anxiety about the future; a growing feeling of frustration after college; loss of professional purpose; low self-esteem; a sense of failure; psychological exhaustion—job search burnout—prolonged dependence on parents; and skepticism towards educational institutions. Unfortunately, this also seems to be a vicious cycle. Unemployment causes mental and emotional instability, which also appears to be one of the main reasons for the difficulty in accessing the job market. No one can give their best and be productive when they are ill.

The difficulty and lack of opportunities for young people of the new generation have a high social cost that impacts all sectors of society. The frustration and challenges involved are not only psychological but also have repercussions on the economy, politics, and demographics. Without social mobility and career progression, trust in institutions declines, along with political participation and social cohesion. If skilled and qualified people are unable to find work, then unemployment is not the only real crisis; the loss of a nation's potential is also a real one.