What Gen Z unemployment rates actually measure

Gen Z unemployment rates track the percentage of people aged 16 to 24 who are actively looking for work but cannot find it. The Bureau of Labor Statistics publishes this figure monthly as part of the Current Population Survey, which interviews about 60,000 households across the United States. The rate includes only people who have looked for a job in the past four weeks — it does not count people who have stopped searching or who are in school full-time.

This matters because Gen Z's unemployment rate often differs significantly from the overall national rate. When the national unemployment rate was around 3.5% in 2023, Gen Z unemployment was closer to 8% to 10%. The gap exists partly because younger workers have less experience, change jobs more often, and are more likely to be in school or training while also working part-time.

Understanding what the number includes and excludes helps you interpret headlines. A rate of 8% does not mean 8 out of every 10 Gen Z people are jobless — it means 8% of Gen Z people who are in the labor force and actively job-hunting cannot find work right now.

Key Takeaways

  • Gen Z unemployment rates are typically higher than the national average because younger workers have less job experience and change positions more frequently.
  • The monthly unemployment rate counts only people actively searching for work in the past four weeks, not students, people who have stopped looking, or those not in the labor force.
  • Unemployment rates vary by education level, race, and geography — Gen Z with a college degree faces lower unemployment than those with only a high school diploma.
  • The Bureau of Labor Statistics releases Gen Z unemployment data monthly, and the figure fluctuates based on hiring patterns, seasonal work, and economic conditions.
  • A higher Gen Z unemployment rate does not necessarily mean fewer jobs exist — it can reflect that younger workers are more likely to leave jobs and re-enter the job market.

How Gen Z unemployment compares to other age groups

Gen Z consistently experiences higher unemployment than older workers. In recent years, Gen Z unemployment has ranged from roughly 7% to 12%, while workers aged 25 and older typically see rates between 3% and 5%. This gap narrows during strong job markets and widens during recessions.

The difference reflects experience and job stability. Younger workers are still building skills, trying different roles, and more likely to leave a job if it does not fit. Older workers tend to stay in positions longer and have established networks that lead to faster rehiring. Additionally, Gen Z workers are more likely to be in their first or second job, where turnover is naturally higher.

Comparing Gen Z to millennials at the same age shows a similar pattern — when millennials were 16 to 24, their unemployment rates were also higher than the overall average. The difference between Gen Z and older workers is structural, not unique to this generation.

Education level and Gen Z unemployment

A Gen Z worker with a bachelor's degree faces roughly half the unemployment rate of someone with only a high school diploma. This gap has widened over the past decade. In 2023, Gen Z with a high school diploma had unemployment around 12% to 14%, while those with a college degree saw rates closer to 5% to 6%.

The gap reflects both job availability and employer preference. Many entry-level positions now require a degree, even for roles that previously did not. At the same time, college graduates have access to campus recruiting, alumni networks, and internship pipelines that high school graduates often lack. Some Gen Z workers are also in school while working part-time, which can affect how they are counted in the labor force.

This does not mean a high school diploma guarantees unemployment — many Gen Z workers without degrees find stable work in trades, retail, food service, and skilled positions. But the statistical gap is real and has consequences for long-term earnings and job security.

Racial and ethnic differences in Gen Z unemployment

Gen Z unemployment rates vary significantly by race and ethnicity. Black Gen Z workers typically face unemployment rates 2 to 3 percentage points higher than white Gen Z workers. Hispanic Gen Z unemployment is usually close to the overall Gen Z average, while Asian Gen Z workers often see rates slightly below the overall average.

These gaps reflect both hiring discrimination and differences in access to networks, internships, and education. Research from the Economic Policy Institute and other sources shows that identical resumes with names perceived as Black or Hispanic receive fewer callbacks than those with names perceived as white. Additionally, Gen Z workers of color are less likely to have family connections in professional fields, which limits informal job-finding routes.

The gaps persist even when controlling for education level, meaning a Black Gen Z college graduate still faces higher unemployment than a white Gen Z college graduate on average. These disparities are documented in Bureau of Labor Statistics data broken down by race and ethnicity, which is updated monthly.

Geographic variation in Gen Z unemployment

Gen Z unemployment rates are not uniform across the country. Some states and metropolitan areas consistently see rates 2 to 4 percentage points higher or lower than the national Gen Z average. Rural areas often have higher Gen Z unemployment than major cities, partly because fewer employers are hiring and fewer job options exist locally.

States with strong tech sectors, healthcare systems, or manufacturing bases tend to have lower Gen Z unemployment. States with weaker job markets or economies dependent on seasonal work see higher rates. The Bureau of Labor Statistics publishes state-level unemployment data monthly, though Gen Z-specific breakdowns by state are less detailed than national figures.

If you are looking for work, knowing your local unemployment rate matters less than knowing which employers in your area are hiring. But regional rates can signal whether you might need to relocate or expand your job search beyond your when ready area.

Why Gen Z unemployment rises and falls

Gen Z unemployment moves with the overall economy but often swings more sharply. During the 2020 pandemic recession, Gen Z unemployment spiked to around 24% in April 2020 — much higher than the overall national rate of 14.7% — because Gen Z workers were concentrated in hospitality, retail, and food service, the sectors hit hardest by lockdowns. As those industries reopened, Gen Z unemployment fell faster than older workers' rates.

Seasonal patterns also affect Gen Z unemployment more than other age groups. Summer months often see lower Gen Z unemployment because of seasonal hiring and school breaks, while fall and winter can see slight increases as students return to school and some seasonal jobs end. The Bureau of Labor Statistics adjusts for these seasonal patterns in its published figures, but the underlying swings are real.

Economic policy, Federal Reserve interest rate decisions, and business confidence all influence hiring. When companies expect slower growth, they hire fewer entry-level workers, which pushes Gen Z unemployment up. When the economy is expanding and labor is tight, Gen Z unemployment falls because employers are willing to train less experienced workers.

What Gen Z unemployment means for job searching

A higher Gen Z unemployment rate does not mean jobs do not exist — it means more Gen Z people are competing for them and the search takes longer on average. If Gen Z unemployment is 10%, that means 90% of Gen Z people in the labor force have found work. The rate reflects churn and competition, not a jobs shortage.

For someone actively job searching, the rate is context. If Gen Z unemployment is rising, expect more competition and longer process processes. If it is falling, employers are more likely to respond quickly and may be more flexible on experience requirements. Checking the current rate monthly through the Bureau of Labor Statistics website can help you adjust your strategy — explore to more positions when competition is high, or being more selective when jobs are plentiful.

The rate also matters for understanding your own situation. If you have been searching for weeks without callbacks, knowing that Gen Z unemployment is 10% tells you the problem is not necessarily you — it is a competitive market. That knowledge can help you decide whether to expand your search geographically, pursue additional training, or adjust your approach.

Frequently Asked Questions

Where can I find the current Gen Z unemployment rate?

The Bureau of Labor Statistics publishes the unemployment rate for ages 16 to 24 monthly on its website at bls.gov. The data is released on the first Friday of each month and includes the previous month's figures. You can also find historical Gen Z unemployment rates going back decades, which helps you see whether the current rate is high or low compared to the past.

Does Gen Z unemployment include people in school?

Only if they are actively looking for work. A full-time student who is not job-hunting is not counted in the labor force at all. A student working part-time and also looking for additional work is counted as employed. A student who lost a part-time job and is searching for a new one is counted as unemployed. The key is whether the person is in the labor force — meaning working or actively searching — not whether they are in school.

Why is Gen Z unemployment higher than older workers even when the economy is strong?

Younger workers change jobs more often, are still building skills, and have less established networks. Even in a strong economy, Gen Z unemployment is typically 2 to 4 percentage points higher than workers aged 25 and older. This is normal and reflects the nature of early-career job searching, not a sign of a weak job market for Gen Z specifically.

How does Gen Z unemployment affect my job search?

A higher Gen Z unemployment rate means more people your age are competing for positions, so expect longer process processes and more rejections. A lower rate means employers are more eager to hire and may be more flexible on experience. Checking the current rate can help you decide whether to explore more broadly, pursue additional training, or adjust your timeline expectations.

Can Gen Z unemployment be zero?

No. Even in the strongest job markets, some unemployment always exists because people are between jobs, searching for better positions, or newly entering the labor force. The lowest Gen Z unemployment rates in recent decades have been around 5% to 6%. A rate of zero would mean every single Gen Z person in the labor force has a job and no one is searching, which does not happen in a functioning economy.