Remote work cuts entry-level hiring 14% as Gen Z struggles to find jobs

The shift to remote work has made companies less willing to hire young talent, with entry-level job postings falling more than 14% since 2019 as employers question the return on investing in workers they cannot train in person.

"The implication is stark — a persistent contraction of this kind hollows out the pipeline of future experienced workers," the researchers at the London School of Economics wrote in a study published last month based on more than 400 million online job postings across several countries.

Firms that remained fully remote after the pandemic were more likely to cut junior hiring, the study found. Recruiting an entry-level worker is a bet on future skills, and remote work slows the rate at which those skills develop, making young talent a less attractive investment compared with older, experienced workers. Separately, a Northeastern University study of 50 million job postings across 28 European countries found remote jobs listed about 25% more skills, requested 0.1 additional years of experience and required more higher education credentials than comparable in-person roles.

The trend threatens to hollow out the pipeline of future experienced workers, the LSE researchers warned, potentially causing declines in aggregate productivity. For Gen Z, the dynamic creates a double bind: remote work makes it harder to find a first job, and the jobs they do find offer fewer opportunities for mentorship and skill development.

Kylie Klapp, a 24-year-old who submitted more than 150 applications over two years before accepting a fully remote role, said she goes days without hearing a colleague's voice. "You give me a task, I give you an output," she said of her interactions. The setup has left her worried about her career trajectory. "The job market is so bad right now," she said. "I need to network."

Matthew Manning, already on his third remote job in three years after graduating in 2023, has never shadowed another employee. He was laid off from both previous roles. "I've never really gotten to know my co-workers," he said. "And I think it's easier to let someone go if you don't have a physical relationship with them."

The Social Cost of Remote Work

Beyond hiring, remote work is reshaping how young employees build careers. Less than a quarter of Gen Z wants a fully remote workplace, according to a Gallup poll last year, compared with more than a third of older generations. Only 6% of Gen Z and Millennials say achieving a leadership position is a primary career goal, a Deloitte survey last month found, while more than 40% said flexible work arrangements would be a top factor in taking on a leadership role.

The lack of in-person interaction has spawned a cottage industry for soft-skills training. Grace McCarrick, an influencer hired by Amazon and Live Nation to improve workplace social skills, now sells her services directly to workers through a program called the Soft Skilled School for a few hundred dollars a month. This month's theme is charisma. "You can have convenience when you're 45," McCarrick said.

A Generational Divide

The remote-work divide is splitting Gen Z into two camps. Some, like software developer Chris Stevers, 24, embrace the flexibility — he codes from his family farm in Ontario and values being able to tend to his cattle while working. Others, like Darby Vernon, a software developer who recently switched to an in-person role after realizing she had gone a week without talking to anyone besides a restaurant waiter, see remote work as a career liability.

Economists at the LSE argue the remote-work explanation for the hiring slowdown is actually the more optimistic scenario. If the problem is fixable — through better remote training programs or hybrid models — corporate America can address it. If artificial intelligence is the real cause, there is far less that can be done.

This article is for informational purposes only and does not constitute investment advice.