The case

Young adults risk being shut out of the labour market before their careers have even taken off.

Source: NZZ am Sonntag – na./mep – page 11 – 05.07.2026

The commentary

Generation Z, already expected to shoulder the financial burden of increasingly strained pension and social security systems, now faces another challenge: An unprecedented number of young people risk being excluded from the workforce before they have even had a chance to establish themselves professionally.

“For the first time, even highly educated young people are affected,” says economist Monika Bütler. One major reason is the rapid adoption of artificial intelligence, which has led to a sharp decline in entry-level job opportunities.

At the same time, more young adults than ever have been claiming disability benefits, an increase driven primarily by mental health conditions, many of which are linked to the uncertainty surrounding the transition from education to employment and the growing difficulty of securing a foothold in the labour market.

“I do not envy this generation for having to enter the labour market today,” says organizational researcher Hans Rusinek. “The labour market is out of balance.” As AI transforms the workplace, companies are becoming increasingly reluctant to invest in training early-career employees. Yet it is precisely these entry-level positions that have traditionally enabled young workers to acquire the experience and skills required for more advanced roles