How Gen-Z Became the Most Resilient Generation in the UK Job Market

After a year of fragility, the UK job market is finally showing signs of balance. For young people, however, that picture is a little murkier.

Unemployment is rising across the board, according to the Office for National Statistic’s (ONS) labour market data, this month reaching a four-year high driven largely by that cohort. 

Liz McKeown, Director of economic statistics at ONS, points out that while “the falls we have seen in both payroll numbers and vacancies are now levelling off”, not all ages are experiencing this period of recovery the same way. 

A fragile recovery, but not for everyone

With mere weeks to go until this year’s Autumn Budget, the ONS data shows that payroll employment is beginning to level off. Between July and August, it rose by 10,000, while provisional estimates for September show a 10,000 month-on-month fall.

But, as McKeown notes: “We see different patterns across the age ranges with record numbers of over-65s in work, while the increase in unemployment was driven mostly by younger people.”

In some respects, this bleak narrative around younger workers today is justified. Job vacancies have declined for the 39th consecutive quarter, falling to around 717,000 in between July and September this year. 

Wages Cooling and Competition Rising

Wage growth has cooled too –  to 4.4% to be precise – making it the slowest in a number of years. This slowdown comes as inflationary pressures ease but costs of living challenges remain.

It means younger workers are facing much harsher competition for fewer roles, and the pressure to settle for lower-quality or lower-paid jobs may intensify. Employers, meanwhile, are becoming more selective, often prioritising experience and flexibility, which disadvantages new entrants still finding their footing.

The Rise of Dual Employment

Employment Hero’s figures paint a similar story of hardship for younger people in the workforce, even among members of Gen-Z who are employed. September’s data shows that 42% of this age group have taken on two jobs, compared to 21% of all employees. 

This kind of dual employment isn’t just about survival – it’s a structural adaptation to a less forgiving labour market. Side gigs, while not necessarily a sign of ambition, also offer flexibility, giving people capacity to respond to fluctuating primary job prospects, buffer against income shocks, and build alternative revenue streams to compensate for slower wage growth.

From Struggle to Strength

Yet, there’s reason to believe that Gen Z’s struggles today could set them up for long-term strength. Forced to navigate a tougher market, they’re becoming more agile, digitally fluent, and confident in figuring out how to diversify their income. 

It may not look like it now, but their embrace of side hustles, portfolio careers and constant upskilling may make them more adaptable to the changing world of work than any generation before them. 

In learning to survive without guarantees, they’re building the kind of creativity, self-reliance and skill that future economies will demand. In the end, that hard-won talent could leave them better equipped than the rest of the workforce when stability returns.