- The U.S. labor market is the toughest it has been in years for recent graduates. In August 2025, the Bureau of Labor Statistics reported the unemployment rate for bachelor’s degree holders aged 20-24 reached 9.3%, nearly double the average for the entire workforce. Compared to March 2020, entry-level hiring has dropped by 23%, a steeper decline than the overall 18% reduction.
- The causes include economic instability, high capital costs, corporate cost-cutting, and accelerated automation. Entry-level positions are often the first to be eliminated because they require training and do not generate immediate ROI. Companies are opting to reallocate tasks, leverage AI, or postpone hiring.
- Instead of waiting, many young people are turning to freelancing. Upwork reports that 53% of skilled Gen Z individuals are freelancing, significantly higher than the 28% average for the skilled workforce. Of these, 53% work full-time on strategic projects in fields like AI, creative design, and business consulting.
- Gen Z freelancers are nearly twice as likely to have postgraduate education compared to their traditionally employed peers. They view freelancing as a “real-world school” where they learn pitching, contract negotiation, time management, and personal branding.
- A prime example: Danielle Farage graduated during the pandemic, lost her job at a large company, and subsequently built her own career through marketing consulting, content creation, and public speaking. She asserts that Gen Z wants transparency, flexibility, and meaning—if companies don’t provide it, they will build it themselves.
- Freelancing is not just a temporary solution but also offers higher intrinsic motivation. Research from Upwork shows that Gen Z freelancers feel more creative and engaged with their work than traditional employees.
- Notably, 61% of Gen Z freelancers are self-teaching generative AI tools, significantly higher than the 41% of their full-time employee counterparts, proving their proactive adaptation to new technology.
- Freelancing helps Gen Z bridge the “entry-level gap” by providing income, building a portfolio, and rapidly acquiring business and leadership skills. Most importantly, they regain control over their careers instead of depending on rigid recruitment processes.
📌 Summary: Jobs for new graduates in the U.S. are disappearing: hiring is down 23% compared to 2020, and youth unemployment for graduates is at 9.3%. In this context, 53% of skilled Gen Z have chosen freelancing, turning it into a new career launchpad. Freelancing not only generates income but also hones pitching, negotiation, management, and AI skills—key competencies for surviving and leading in the future economy. 61% of Gen Z freelancers are self-learning generative AI tools, far surpassing the 41% of full-time employees, demonstrating their proactive adaptation to new technology.
