Gen Z adults reported the highest levels of economic strain in what a new report calls a deepening “generational recession,” with more saying they were unemployed and looking for work and fewer expressing confidence about their career paths.
The study by Goodwill Industries International (GII) found wide gaps between how different generations are experiencing the job market, and a growing divide between what workers expect and what they are actually encountering in their careers.
An online poll of 1,300 people found more than half of respondents (56 percent) said the current economy made it difficult for them to fully use their education and skills.
“America’s workforce has historically been one the great strengths of our economy, but this research shows that the future of our workforce—younger workers—are facing significant challenges,” said Steve Preston, president and chief executive officer of GII. “Too many young workers are experiencing a confidence gap, especially as work changes faster than they can adapt.”
Workforce Under Pressure
Over the past year, a wave of layoffs in some sectors, rapid workplace shifts and ongoing disruptions have left many Americans unsure about their professional futures, says the report. While economic data often tracks job numbers and wages, the report argues that the personal experiences behind those figures are less understood.
Its findings suggest that the impact of economic instability has not been evenly shared. Although many workers report feeling confident in their abilities, faith in the broader market is far weaker.
Among all generations surveyed, Gen Z respondents (those aged 18 to 27) were the most economically strained. The report found that 15 percent of Gen Z respondents identified as “unemployed and looking for work,” compared to the overall average of 11 percent across all age groups.
Even among those who are employed, career optimism is weaker. Some 82 percent of Gen Z respondents said they felt confident about their current position or career, a figure that trails the overall survey average of 86 percent and the 94 percent reported by Baby Boomers.
Less Confidence
When asked to consider what they would do next if they lost their job, just 28 percent of Gen Z respondents said they felt confident in their path forward, far below the 59 percent reported by Boomers.
That lack of certainty appears to be reshaping how younger workers view their futures. Fewer than a third of Gen Z respondents—31 percent—said they planned to remain on their current career path, compared to 42 percent of Millennials and 48 percent of both Gen X and Baby Boomers.
The report also links job insecurity to delayed life goals. Forty-two percent of Gen Z respondents said concerns about their employment have forced them to postpone major financial milestones, such as paying off debt, continuing their education, buying a home, or making investments.
Across every category—from debt to education to investing—roughly one in five Gen Z respondents said they had either significantly delayed or completely put off their plans because of anxiety about their careers. This is also driving broader changes.
Roughly one in five of those polled said they were planning a “dramatic career shift” in response to the current economic climate. Among Gen Z, more than half said they were considering changing jobs in some capacity.
GII commissioned a nationally representative online survey of the U.S. population across age, gender and region, conducted by Audience Align between December 5 and 11, 2025, which oversampled Gen Z respondents (557) while also collecting data from 271 Millennials aged 28 to 43, 241 Gen X respondents aged 44 to 59, and 231 Baby Boomers aged 60 and older.
The findings reflect self-reported attitudes and employment status, and the report did not compare results directly with official labor statistics.