The old system failed Gen Z. We should listen to them for a change
Investment
Fortune

The old system failed Gen Z. We should listen to them for a change

August 9, 2025
12:00 PM
7 min read
AI Enhanced
economytechnologyeducationmarket cyclesseasonal analysiseconomic

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College hasn’t kept up and corporate cost-cutting and the rapid expansion of AI are also forcing Gen Z towards new economic models.

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7 min read

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investment

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Published

August 9, 2025

12:00 PM

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Fortune

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Key Topics
economytechnologyeducationmarket cyclesseasonal analysiseconomic

ary·EducationThe old system failed Gen Z

We should listen to them for a changeBy Reid LitmanBy Reid Litman Reid Litman is a global director with Ogilvy Consulting

He also contributes to Ogilvy’s Center for Behavioral Science and Ogilvy’s Gen Z Pulse offering, a platform that connects brands with youth culture and the creator economy through "instant panels" and youth councils

Gen Z has been failed by the old system.Getty ImagesWorking, learning and earning look radically different today than they did for previous generations

The predictable, linear career paths of the past have given way to a much less certain fessional life

Every day brings another headline Gen Z’s eroding career spects, from AI takeover and market volatility to the outlook for entry-level jobs hitting a multi-year low

This is the crossroads where Gen Z stands, having come of age through an era of nological advancement and general tumult across social, political and economic landscapes

Meanwhile, the gig economy, comprising independent consultants, freelancers, creators, entrepreneurs and more, has found critical mass

Far from being considered the “alternative” career path it once was, according to some estimates, half of all workers in developed countries will be gig workers by 2027

While this shift from the 9-to-5 may not always be glamorous, it taps into what youth culture has always embraced: independence and messy transitions

Unable to wait for stability, Gen Z is taking the reins and shaping a new economy on its own terms

What’s driving Gen Z’s new economy? Simply put, college hasn’t kept up

Traditional education no longer guarantees career stability; half of Gen Z job seekers view their degrees as a waste of time, and 44% of young fessionals say they weren’t equipped with the right skills to succeed

And now, with college degrees, they are just as ly to be unemployed as those who never went

The impact of this trend is already evident, with undergraduate freshman enrollment dropping more than 5% year-over-year as of fall 2024 — the largest decline since 2020, the height of the COVID-19 pandemic

Corporate cost-cutting and the rapid expansion of AI are also forcing Gen Z towards new economic models

Layoffs abound across industries once considered bulletof by young jobseekers — from banking and to marketing services

And increasingly, young job candidates are battling not just with each other, but with AI agents and bots: according to one survey, 37% of managers prefer hiring AI over Gen Z graduates

As society devalues labor, it seems many corporations would rather invest in an LLM than a BSB or BSA

However, it’s not just external forces; Gen Z’s own values are also shaping this gig future

Un previous generations, Gen Z builds identity around passions, not traditional demographics or ideologies — with 81% saying they prefer to be defined by their interests over labels age or gender

And while these passions vary widely across the globe, they have one thing in common: creativity is non-negotiable

For Gen Z, creativity and self-expression aren’t just hobbies; they are core attributes of daily life, and increasingly, the ability to make a living

Today, a striking 89% of Gen Z already consider themselves creators, blurring the line between consumer and contributor

This is a generation that sees itself as builders from a young age

While they can’t control the economic and forces shaping their world, Gen Z is working to turn that disruption into a pathway for independence

The rising creator class and how Gen Z is rewriting work At a rapid clip, we’re seeing Gen Zers skip the rising cost of traditional education and instead choose to invest in themselves

We’ve seen young people launch innovative content studios to help creators more easily connect with brands, stand up marketplaces for gig workers to help train one another, and duce digital ducts design templates, music samples, or online courses that sell while they sleep

Even failed ventures are seen as worthwhile

Many young people would rather invest in themselves, building practical skills that help them stand on their own, than spend four years in a gram that may already be outdated

While shaping one’s path isn’t a new concept, the outright re-engineering of the “standard early career track” is

Today, the gig economy is growing three times faster than the traditional workforce

And with creators, influencers, independent entrepreneurs and part-time consultants all averaging under 30 years old globally, Gen Z is the dominant force in this new economy

Perhaps ironically, the same nology enabling major companies to reduce their workforce and replace entry-level talent with generative AI and other tools is simultaneously empowering the emerging creator class

These tools allow young people to duce higher quality works, bringing them closer to their passions and the ability to earn from those passions is more attainable than ever before

It’s a strange twist of fate for Gen Z to be both more creatively empowered, able to connect and earn on their own terms, yet unable to find traditional work in the “corporate economy.” In this light, despite some of the critical jabs at Gen Z, the early development of personal brands and creative skills has become the only real moat around a broken career ladder

These disruptions present a found opportunity for brave brands: help Gen Z thrive, not just survive in the burgeoning gig economy

The gig economy isn’t without its downsides

Income can swing wildly month to month and traditional benefits health care and paid leave are rarely part of the package

Many young workers find themselves hustling across multiple platforms just to piece together a living, and in some cases, burning out before they ever hit their stride

Subsequently, over the next three years, demand will surge for innovative learning and development formats to close the growing skills gap and power the gig economy, giving brands a generational opportunity to connect with youth

By creating tools and grams that support Gen Z’s development in this new frontier, brands can engage with both Gen Z creators and potential employees

When it comes to engaging potential employees, the smartest brands are stepping in, not with budget cuts or vague “learning cultures,” but with real tools: from subsidized upskilling to flexible development tracks and support for passion jects and even side hustles

Interestingly, Gen Zers are increasingly trying to close their own skills gap outside of the classroom, 62% want to be further trained in AI

To help creators thrive, brands must invest in what actually fuels Gen Z’s success: access to premium tools, community connection, and skill development

In 2025, creator content is jected to surpass traditional media in global ad revenue for the first time, a signal that it’s time to treat creators not as megaphones, but as strategic partners in storytelling and brand growth

The future of Gen Z’s economy Gen Z’s cultural and commercial influence is well documented, but their career ladder is a work in gress

The shape of modern careers is rapidly morphing because of macroeconomic forces and because young people themselves are forging individual pursuits and directional life decisions on their own terms

That’s the thing youth culture: it’s always been a rich source of intellectual and emotional depth

But now the collision of Gen Z’s creative ambition with the rise of AI has made it impossible to ignore

Ultimately, Gen Z is walking forward into this new economy with self-determination

The companies that collaborate with, rather than replace, Gen Z won’t just future-of their workforce, they’ll unlock bold ideas and partnerships from a generation wired to change the rules

The opinions expressed in Fortune.com ary pieces are solely the views of their and do not necessarily reflect the opinions and beliefs of Fortune.Introducing the 2025 Fortune Global 500, the definitive ranking of the biggest companies in the world

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