1 in 8 Managers Say Gen Z Is Unemployable; Companies Turn To AI Instead

A new ResumeTemplates.com survey finds that hiring managers have concerns about hiring Gen Z employees and are turning to artificial intelligence as a more reliable alternative.

The survey of 1,000 U.S. hiring managers found:

• 6 in 10 have hesitations about hiring Gen Z workers
• 1 in 8 believe the average Gen Zer is unemployable
• 18% say Gen Z has negatively impacted company productivity
• 41% say AI is more reliable than Gen Z
• 29% of companies have already replaced entry-level workers with AI, and 34% are considering it
• 68% believe AI will reduce the need for entry-level employees within five years

6 in 10 Hiring Managers Hesitant To Bring on Gen Z

The survey found that only 42% of hiring managers are very willing to hire Gen Z employees. Another 37% say they’re somewhat willing, while 15% remain neutral, and 5% are unwilling to hire Gen Z workers.

About 18% of managers feel Gen Z workers have directly lowered company productivity, and one in eight go as far as labeling the average Gen Zer as unemployable.

Gen Z’s work ethic, entitlement, and professionalism cause concern

Managers point to several recurring issues with Gen Z employees. Among managers who are unwilling to hire Gen Z, a large majority say the generation lacks work ethic (81%), while 74% describe them as entitled, and 68% say they struggle with professionalism.

“I’m not surprised by these findings. Years ago, Millennials were labeled the same way. Critiques about entitlement and professionalism have followed every generation entering the workforce. It usually comes down to experience, shifting workplace norms, and how schools and parents prepare young professionals for real-world expectations,” says ResumeTemplate.com’s Chief Career Strategist Julia Toothacre.

3 in 10 Companies Have Replaced Entry-Level Roles With AI

Companies are increasingly leaning on artificial intelligence to fill hiring gaps. Four in 10 managers (41%) believe AI is more reliable than Gen Z, noting that it is faster, more consistent, and delivers fewer errors. Already, 29% of companies have replaced entry-level employees with AI, and another 34% are considering it.

The roles most affected include data analysis and reporting, customer service, technical support, and research.

“Organizations need to remember that every professional has to start somewhere, and it’s not at the mid-career level,” says Toothacre. “By replacing entry-level roles with AI, companies risk cutting off their own talent pipeline. Over time, this will lead to a shortage of skilled mid- and senior-level professionals who never had the opportunity to build foundational experience early in their careers.”

7 in 10 Hiring Managers Predict Fewer Entry-Level Roles in the Next Five Years

Looking ahead, hiring managers expect AI to further disrupt the entry-level job market. About 68% predict their companies will require fewer entry-level employees over the next five years. This suggests that the challenges facing young workers may intensify as AI continues to reshape the workplace.

Methodology: This survey was conducted in October 2025 by ResumeTemplates.com. A total of 1,000 U.S. hiring managers participated. To ensure appropriate responses, participants were required to meet specific demographic criteria and successfully complete screening questions prior to taking the full survey.