CURATED READS ON GEN Z IN THE WORKPLACE

Welcome to the latest edition of Mind the Gap. We hope you find our perspectives useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

first up

For the recent college graduates who haven’t found their first jobs yet: You’re not alone. In the United States, the job market for recent graduates is the toughest it has been in years—no surprise to Gen Zers who are applying into the void. Data from other countries, including the United Kingdom and South Korea, also point to challenges, though not always for the same reasons.

In a recent episode of McKinsey Talks Talent, McKinsey Senior Partner Brooke Weddle and Partner Bryan Hancock spoke with Indeed’s chief economist, Svenja Gudell, who says that one word sums up today’s labor market: uncertainty. 

Gudell points out that for companies, aging workforces, macroeconomic fluctuations, and the rise of AI are colliding to create more questions than answers about whether and whom to hire. She confirms what many Zoomers are likely experiencing: There are fewer available internships and entry-level positions, and part-time positions are more prevalent than full-time jobs. Taken together, this means that young job seekers may face an exceptionally competitive and fragmented labor market, in which access to early work experience could require more persistence, flexibility, and creativity than in previous years.

As AI reshapes the roles companies hire for, the skills employers seek, and the way work gets done, there is some good news. “I think this is the first time we’ve seen a disruption be not only the disruptor but also potentially the vehicle to help you live through that disruption,” Gudell says.

For Gen Zers, getting ahead means embracing AI—no matter their educational backgrounds. Here are three ways that Zoomers can take advantage of and align themselves with AI trends to stay a few steps ahead of job market changes: 

While it’s a no-regrets move to get ahead of the curve on AI, Gen Zers don’t have to become AI experts overnight. There’s still time for them to develop their skill sets, especially since most employers are still early in the process of adopting AI at scale. As Gen Z enters the workforce or transitions between roles, it’s important to see AI as an advantage rather than an obstacle—both during the job search and beyond.

VISUALIZE IT

Workers are adopting AI technology faster than many of their leaders realize.

WAIT, DON’T SCROLL

Team players. CFOs with enterprise-wide transformation experience recommend prioritizing the organization’s people—as opposed to the process—during a transformation.

Play ball. Here’s what the shift from wellness to health means for the sporting goods industry.

Beach reads. Ahead of late-summer getaways, these are the book titles that CEOs, business leaders, and even McKinsey colleagues recommend for your reading list.

NOT US; STILL GREAT

Stare masters. This Gen Z behavior highlights a generational divide—as well as what happens when social skills are underdeveloped. [NYT]

‘Soft saving.’ Gen Zers are prioritizing memorable experiences—a sizable number average three leisure trips per year—while also saving cash for their futures. [Guardian]

CROSSWORD

—Edited by Audrey Kim, McKinsey Global Publishing intern