There’s a noticeable trend of young men in Generation Z exiting the workforce, and experts express concern that the growing prevalence of artificial intelligence might intensify this troubling situation.
In July, the unemployment rate in the U.S. dropped to 4.1%, marking its lowest point this year and falling well below the post-World War II average of 5.6%.
However, this seemingly positive statistic masks some grim realities. The labor force shrank by over 250,000 workers in July compared to a year earlier, reaching its lowest tally since the pandemic began.
One significant issue is the decreased participation of men aged 16 to 24 in the labor market, which now stands at 56.1%. This reflects a nearly 13-point drop from 69% in 2000, based on data from the Bureau of Labor Statistics.
An alarming statistic is that the share of unemployed young men who are not actively job hunting has doubled since the 1990s to 8%, according to Ben Smith, director of research at the American Institute for Boys and Men.
This raises concerns that a growing number of young people in the U.S. are finding it difficult to move out of their parents’ homes, prompting economists and social advocates to explore the reasons why.
According to Challenger, Gray & Christmas, artificial intelligence has been linked to over 184,000 layoffs this year. While tech executives contend that AI will generate new job opportunities in the long run, it is widely anticipated that it will disrupt entry-level positions in various sectors, including tech, finance, and manufacturing.
Smith cautions that the influence of AI remains unclear, yet “men and the types of roles they typically occupy are more vulnerable to being replaced by AI if it fully takes over these jobs.”
Maria Flynn, the CEO of the nonprofit Jobs for the Future, notes that entry-level hiring has declined across multiple sectors including retail and manufacturing — where young workers once made their entrance.
“The longer individuals remain out of the labor market early on, the more challenging it becomes for them to acquire the skills, networks, and work experience crucial for determining their earnings over the long haul,” Flynn shared.
Statistics for young men contrast starkly with those of other demographic groups. While labor force participation for those aged 65 and older has risen from 12.5% in 2000 to 19.2% in July, younger men aged 25 to 54 saw only a slight decline of about 2.9 percentage points, and those aged 55 and older slightly increased their participation.
Young women, aged 16 to 24, have also experienced a decline, albeit less severe than men, and other female age brackets have seen growth. Indeed’s Hiring Lab suggests that, for the third time ever, women are now holding slightly more jobs than men in the U.S., with expectations for this gap to widen.
Interestingly, the NEET (Not in Education, Employment, or Training) rate for males aged 16 to 24 has increased from 10% to 12% since the 1990s, paralleling a marked decrease in the NEET rate for women. Back in 1990, men held nearly 7 million more jobs than women.
Researchers are particularly worried about the small pool of male NEETs who neither work nor seek employment, leading to questions surrounding their job-seeking motivations.
As Generation Z leans increasingly towards blue-collar jobs, the pursuit of stable employment seems to outweigh concerns related to potential job losses caused by AI.
Paul Iaccarino, from the Building Trades Education Benefit Fund which trains electricians across New York state, noted that Gen Z comprises 66% of the enrollment in a five-year apprenticeship program in Eastern New York, with the average age of new enrollees dropping from 30.9 in 2021 to 26.2.
While there’s enthusiasm among Gen Z for blue-collar jobs, Iaccarino points out a “total disparity” as fewer young people altogether seem to be entering the workforce.
“A lot of these kids struggle to get started,” he mentioned. “Even in the beginning, it’s tough to push forward if you’re worried it won’t pan out. That’s a big part of the concern.”
“I used to think it’d take forever to hit six figures to buy a house,” he added. “There’s immense pressure on young men these days, and it’s ambiguous how they’ll navigate these challenges.”
Some men are opting to reduce their work hours to spend more time at home or help with household duties. However, a study from the National Bureau of Economic Research shows that those not employed still tend to spend time and money on leisure activities, with about 70% of their non-working time consumed by video games.
Interestingly, one in five NEET women reported caring for children, while only 3% of NEET men did.
Much of the recent job growth can be traced back to the healthcare sector, which is predominantly staffed by women. This could partly explain why women seem to be doing better in the job market.
Ironically, this growth draws strength from the need to care for an aging population leaving the workforce, noted Eric Pacman, executive director of Data 4 the People.
“Men should be aiming for positions as home health aides. This sector is thriving, and for solid employment, they need to move into those roles,” Pacman advised. “There’s been a reliance on women in the past two to three years.”
By 2025, women entered the workforce at nearly three times the rate of their male counterparts. In fact, women filled two-thirds of the 1.2 million new jobs added between February 2024 and February 2026. Last year, a staggering 77% of the growth in payrolls was attributed to women, while male-dominated sectors like manufacturing faced declines.
Though higher education is often pointed to as a reason for delayed workforce entry, men are actually vanishing from college campuses at alarming rates. In 2021, men made up only 42% of total undergraduate enrollment, trailing behind women by approximately 3.1 million.
The disparity was even more pronounced in PhD programs, with male enrollments shrinking from 90% in 1970 to just 44% in 2021.
Those pursuing college degrees find their qualifications aren’t as impactful as they used to be. Historically, having a bachelor’s degree kept unemployment rates low, but now, the jobless rate for young men with degrees is nearing that of those without, according to AIBM.
In July, despite these trends, millions more women aged 20 to 24 were out of the workforce compared to their male counterparts, based on unpublished BLS data.
Both genders are participating in the labor force at lower levels than two decades ago, indicating that both young men and women are working less than their parents did.
Men’s labor force participation rates have consistently gone down for those aged 25 to 29 and 30 to 34 since the 1980s, while women in these age groups have seen a rise, according to BLS data compiled by Data 4 The People.
Yet, the participation rate for women aged 20 to 24 stood at 66.8% as of July, which is similar to the levels seen in the 1980s and still lower than the 73.6% rate for young men in the same age bracket.
