One in eight hiring managers say the average Gen Z worker is unemployable, according to a new survey that reveals growing concerns about younger employees and a shift toward replacing entry-level positions with artificial intelligence.
The survey of 1,000 U.S. hiring managers, conducted in October 2025 by ResumeTemplates.com, found that 12 per cent consider Gen Z unemployable, while 60 per cent report hesitations about hiring from the generation. In response, 29 per cent of companies have already replaced entry-level employees with AI, and another 34 per cent are considering it.
Forty-one per cent of managers say AI is more reliable than Gen Z employees, citing speed, consistency and fewer errors as key advantages.
Managers cite work ethic and professionalism concerns
Among managers unwilling to hire Gen Z workers, 81 per cent cite lack of work ethic as a primary concern. Seventy-four per cent describe Gen Z as entitled, while 68 per cent say they struggle with professionalism.
Only 42 per cent of managers say they are very willing to hire from the generation. Eighteen per cent say Gen Z workers have directly lowered company productivity, according to the survey.
AI replaces roles in customer service and data analysis
The positions most commonly replaced by AI include data analysis and reporting, customer service, technical support and research roles.
“Organizations need to remember that every professional has to start somewhere, and it’s not at the mid-career level,” says Julia Toothacre, chief career strategist at ResumeTemplates.com. “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.”
Fewer entry-level jobs predicted
Sixty-eight per cent of hiring managers predict their companies will require fewer entry-level employees over the next five years as AI continues to reshape workplace operations.
Toothacre notes that concerns about younger workers are not new. “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,” she says.
The survey was conducted in October 2025 and included hiring managers who met specific demographic criteria and completed screening questions.
