The rise of AI and why governments around the world are stepping in to support Gen Z in the workforce

The rise of AI and why governments around the world are stepping in to support Gen Z in the workforce

Faced with a labor market hardened by AI, governments are supporting Generation Z, the technological engine of businesses and a key lever of future competitiveness and innovation.

There is a widespread belief that Generation Z is ill-prepared for the modern workplace: unambitious, disengaged, reluctant to put in the necessary effort. It’s an easy headline to make, but it’s a false conclusion.

The reality is much more nuanced. Generation Z is hardworking, entrepreneurial and represents the future of the workforce and the global economy. In France, 84% of 18–28 year olds say they have a taste for work, according to a recent Ipsos study, which demonstrates a high level of commitment. What she faces is not a lack of motivation, but a fundamentally different and more complex entry point into the world of work.

Today, young people are entering one of the toughest job markets in decades. Research from Randstad and the Institute of Student Employers (ISE) highlights the growing pressure on entry-level roles, with a 29% drop in entry-level job postings between January 2024 and the end of 2025.

At the same time, competition has reached historic levels. In 2002, an offer for young graduates received around 38 applications; in 2025/2026, this figure increased to 140 applications per position. Large companies are also forecasting a 7% drop in recruitment of young graduates for the 2025/2026 cycle.

Why governments are supporting Generation Z

This challenge is global, and policymakers are responding accordingly. Governments, from Portugal to India, are putting in place measures to encourage the hiring and training of young people, aware of both the scale of the problem and the opportunities it represents.

In France, the “1 young person, 1 solution” initiative offers up to €4,000 per year to employers recruiting young people under the age of 26. In Spain, the “Youth Guarantee Plus 2021–2027” plan still offers exemptions from social security contributions and direct hiring aid for companies offering permanent contracts to young people. In the UK, the government recently announced a billion-pound youth employment plan to tackle a 10-year high in youth unemployment.

These measures aim to help Generation Z navigate a changing job market, while allowing businesses to develop their talent and benefit from their digitally native skills.

A generation shaped by change

Yes, the job market is more competitive than ever, regardless of the country. But the very nature of work is also changing. Far from lacking motivation, this generation is evolving in a context of unprecedented complexity, between intense competition, rapid technological transformations and global uncertainties.

What Generation Z brings is a unique strength: a natural comfort with technology. Smartphones, broadband connections and social platforms are part of his daily life. But in today’s economy, this control is not enough. The real differentiating factor is mastery of AI: those who actively experiment with artificial intelligence tools, know how to apply them and integrate them into their work bring not only technical skills, but also new ways of thinking, promoting productivity, innovation and growth.

We are already observing this phenomenon. According to a global study by IWG, almost two-thirds of young employees actively support their older colleagues in adopting AI, playing a key role in the diffusion of these technologies within companies.

This form of reverse mentoring produces tangible results, improving collaboration and accelerating productivity. It also illustrates a broader change: young employees are no longer content with learning from organizations, they are actively contributing to transforming working methods.

In the age of AI, initiative makes the difference

Of course, developing these skills requires initiative. Just as previous generations learned to code or acquired additional skills in their spare time, today’s young professionals must take charge of developing their AI skills and, more broadly, skills for the future.

Increasingly, this learning takes place outside of formal settings, through online communities, peer networks and direct experimentation.

Building a career in this environment requires a more intentional approach. Young people need to ask themselves: “Where will I get the best experience?” and “Am I developing the skills that employers will be looking for tomorrow?” For those who are not yet employed, volunteering can play a key role in gaining concrete experience, developing behavioral skills and demonstrating initiative in a very competitive market.

Supporting talents through skills development and flexibility

Responsibility cannot rest solely on individuals. Employers also have an essential role to play in training their teams and providing them with the best tools. Companies that invest in training, mentoring and real-world development opportunities will unlock significant potential.

Employers who offer flexibility, with the ability to work from convenient locations close to home, combined with innovative and stimulating environments, will also be better placed to attract and develop emerging talent while improving productivity. Indeed, flexibility is no longer an option: it is now expected. This trend is only accelerating, with 79% of young people aged 11 to 17 anticipating flexible working will be the norm by 2040.

An opportunity not to be missed for businesses

Governments around the world are encouraging businesses to recruit Generation Z because they recognize their potential: young people bring skills, an entrepreneurial spirit and a capacity for innovation that can transform productivity and competitiveness.

Young people are already adapting, learning new tools, navigating uncertainty and evolving in historically difficult markets.

For companies, investing in this generation will not only reveal exceptional talents, but also secure their own future in a competitive world shaped by artificial intelligence.

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