Gen Z hates 9 to5 jobs? Why young graduates are ditching hiring queues for self-employment and startups: Report

For many people, there is a growing perception that Gen Z professionals are less interested in traditional corporate jobs and the regular 9-to-5 work culture. Whether that is true or not, in a job market where hiring is slowing down and entry-level opportunities are becoming harder to secure, more young graduates are either struggling to enter the job market or choosing to build their own businesses instead of waiting for formal recruitment processes.

A new LinkedIn report showed that Gen Z job seekers are spending longer searching for work than other generations, signalling a growing Gen Z workforce. According to LinkedIn chief economist Karin Kimbrough, “New grads are entering one of the most competitive job markets in years. Competition has intensified, people are transitioning jobs less often and traditional career paths feel far less linear.”

The shift is already visible online. The number of users adding “founder” to their Linked In profiles has jumped nearly 70 per cent in one year and has almost tripled since 2022.

Beyond traditional startup hubs

The trend is strongest in parts of the US outside traditional tech centres. While the San Francisco Bay Area and New York remain major startup hubs, cities such as Dallas, Austin, Houston, Atlanta and Miami have seen faster growth in young founders over the last five years. LinkedIn said lower living costs, tax benefits and stronger local networks are attracting entrepreneurs to these cities.

Another major reason is technology. AI tools and online platforms are making it easier for people to start businesses with fewer resources. Many new ventures are now fully online, allowing founders to work from anywhere.

Slowing hiring market

The report said the wider labour market slowdown is also pushing young people towards self-employment. Hiring in the US fell for the fourth straight month in April. LinkedIn data showed hiring is down 8.5 per cent compared to last year and remains far below pre-pandemic levels.

Many Gen Z workers also feel unsure about whether traditional jobs can meet their long-term career goals. Self-employed professionals, however, reported higher levels of job satisfaction and stronger feelings of control over their work.

That desire for flexibility and independence is shaping how Gen Z approaches work. LinkedIn’s survey found that flexibility and financial independence are among the biggest reasons young people choose entrepreneurship. Many are also managing multiple income streams at once.

AI lowering barriers

AI is playing a major role in this change. Around 68 per cent of Gen Z entrepreneurs surveyed said AI and digital tools helped them start or run their businesses.

The report also highlighted the risks of entrepreneurship. Data from the Commerce Institute showed that about 20 per cent of new businesses shut down within their first year, while nearly half fail within five years.

Still, many young founders believe building something of their own feels less risky than waiting for the job market to improve.

For some, self emloyement is a choice driven by ambition and flexibility, and for others, it is a response to limited opportunities. Either way, work for this generation is no longer only about waiting for a job offer, but also about creating new ways to work and earn.

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