Pioneering Study Reveals a School-to-Work Crisis Threatening Gen Z's Future
Research shows how young Americans seek professional success but face deeply fractured pathways to the job market because educators, parents and employers are misaligned and provide outdated guidance
This Broken Marketplace impacts the majority of 30 million young adults in America and poses a serious threat to building the U.S. workforce needed to support economic growth
Study also sheds new light on the impact of AI on the youth workforce; young people turning to social media as a career coach; and young women facing a quiet mental health crisis
SEATTLE, July 15, 2025 /PRNewswire/ -- The Schultz Family Foundation and research consultancy HarrisX released a major new study today revealing how the paths from school to work for millions of young Americans—both those with and without college degrees—are far more fractured than previously known, posing a significant threat to building the future of the American workforce.
Data from The Broken Marketplace: America's School-to-Work Crisis, a sweeping survey of more than 5,700 young Americans ages 16-24 and the adults meant to support and guide them, shows that the struggles young adults have in finding jobs is not a temporary blip. Rather, many of the people and institutions designed to support young adults on the journey from school to work are fundamentally out of sync with a rapidly shifting modern economy, and their challenges are poised to get worse as advances in artificial intelligence further impact the labor market.
More than four in 10 young adults surveyed said both the education system (43%) and the employment resources (45%) to which they have access are broken and not providing them effective guidance. They voiced worry that employment will become even more difficult as AI impacts the job market: Nearly half (46%) said they feel unprepared, or are unsure of their preparation, for jobs of the future.
"Today's young people are eager to succeed, but the systems meant to support them are falling short," said Vivek Varma, CEO of the Schultz Family Foundation. "This research provides key insights to design a better marketplace that is built for more informed choices, accessible resources, lifelong learning, flexible pathways and opportunity accessible to all."
A first-of-its-kind study the Broken Marketplace also included in-depth qualitative and quantitative interviews with parents, educators and employers to reveal the ways each group is misaligned with the other. For example, 77% of employers report requiring at least a year of experience from those seeking entry-level jobs, yet most do not offer internships, apprenticeships or other programs designed to provide early-career experience. More than nine in 10 (93%) parents say school is preparing their young adult for the workforce, but 52% of employers say there is a mismatch in school curricula and the skills their industry needs.
Of the about 30 million Americans between 18 and 24 years old, many are struggling to tap their full potential in the Broken Marketplace. More than half are unemployed, churning through low-wage jobs or are working roles beneath their educational attainment, according to an analysis by the Burning Glass Institute.
"What we found is that employers, educators, and parents are caught in a finger-pointing loop in the Broken Marketplace, each expecting the other to fill the gap," said Dritan Nesho, CEO and head researcher at HarrisX. "The result is a vacuum of relevant and reliable support for young adults, which has pushed them increasingly towards social media and away from traditional guidance systems."
Other significant findings include:
- Social media is the new career coach: Seven in 10 young adults learn about educational (79%) or career (70%) pathways on social media, but only 16% of parents and 22% of navigators encourage social media as a tool for self-exploration.
- Young women are facing a quiet mental health crisis: Despite conventional wisdom about young men feeling "lost," the study found young women are facing greater mental health challenges and job market anxieties. Only 50% of young women ages 18-24 feel prepared for the jobs of the future, compared to 60% of their male peers, while 51% of young women say they've experienced mental health challenges compared to 36% of men.
- AI is seen both as an essential tool and a threat to skills: 30% of young adults rely on AI to learn new skills but 60% of educators say AI is hindering skill-building for the future workforce.
- Mental health is top priority: 37% of young adults rank mental health as one of the most important factors to their success, ahead of building a career or pursuing more education. 75% of young adults are still feeling impacts of COVID shutdowns, with 31% citing a direct impact of the pandemic on their mental health today.
"The findings illuminate how a broad swath of Generation Z remains far from tapping its full potential because of systemic inertia that leaves too many young people stranded at the moment they should be starting their careers," said Rajiv Chandrasekaran, a Managing Director of the Schultz Family Foundation. "This Broken Marketplace poses a significant risk to building the future workforce our nation needs, particularly at a time when the country is seeking to increase domestic industrial production."
HarrisX conducted 5,771 quantitative and qualitative interviews for the study. Quantitative online interviews were conducted with 2,820 16-to-24-year-olds, with a focus on middle-to-low-income households; 992 parents of young adults; 1,267 educators, guidance counselors, community leaders and career/workforce specialists; and 607 human resources and hiring managers.
To learn more, visit www.brokenmarketplace.org
About the Schultz Family Foundation
The Schultz Family Foundation's mission is to create greater opportunity, accessible to all. Our work is deeply rooted in the lives and values of our co-founders, Sheri and Howard Schultz, who believe talent is everywhere, but opportunity is not. We seek to apply the lessons they have learned over the decades to seed innovations and scale solutions to help young people successfully navigate the transition to adulthood and positively impact the trajectory of their lives. We are investors in unleashing potential and unlocking opportunity, working in partnership with employers, entrepreneurs, non-profits, and governments that share our aspiration of enabling everyone to access the full promise of America. Learn more at: www.schultzfamilyfoundation.org.
About HarrisX
HarrisX is a leading strategic research, data analytics and AI consultancy focused on emerging technologies, business and social trends, social impact, public policy and politics. HarrisX conducts multi-method research in the United States and over 50 countries around the world on behalf of Fortune 100 companies, public institutions, NGOs, global leaders and philanthropic organizations. HarrisX was one of the most accurate pollster of the 2020 U.S. presidential election, and one of the most accurate outfits in the 2024 presidential election, correctly calling the results in five out of seven battleground states and the national vote. For more info visit: www.harrisx.com
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