There is a widespread belief that Gen Z is somehow ill-equipped for the modern workplace: unambitious, disengaged, unwilling to put in the hours. It’s an easy headline, but it is the wrong conclusion to draw.
The reality is far more nuanced. Gen Z is hard-working, entrepreneurial, and represents the future of the global workforce and economy. What they are facing is not a lack of motivation – but a fundamentally different and more challenging entry point into work.
Young people today are entering one of the toughest job markets in decades. Research from Randstad and the Institute of Student Employers (ISE) highlights the growing squeeze on early-career roles, with global entry-level job postings falling by 29% between January 2024 and late 2025.
At the same time, competition has reached historic highs. In 2002, a graduate vacancy received roughly 38 applications; by 2025/26, that number has skyrocketed to 140 per vacancy. Large employers also forecasted a 7% reduction in graduate hiring for the 2025/26 cycle.
Why governments are backing Gen Z
This challenge is global, and policymakers are responding accordingly. Governments across the world are introducing schemes to incentivise hiring and training of young people, recognising both the scale of the issue as well as the opportunity. Similarly in India, there lies a real opportunity with a young, dynamic population and a rapidly AI-driven economy. India’s Ministry of Electronics and IT projects that AI could add $1.7 trillion to the economy by 2035[1]. The question is whether businesses and governments move fast enough to make the most of it, leveraging the Gen Z demographic.
To ensure its workforce is ready for this shift, the Indian government has built a comprehensive upskilling pipeline that addresses both entry-level workforce training and foundational education. At the entry level, the government launched the Skill India Mission[2] in 2015, one of the most ambitious professional development programmes ever attempted. With a target of training 400 million people across more than 40 sectors, the mission actively supports post-education job training through apprenticeships and internships.
Alongside this, the flagship scheme of India’s Ministry of Skill Development and Entrepreneurship, PM Kaushal Vikas Yojana (PMKVY)[3], has already delivered on its promise, training over 16 million people—nearly half of whom are women. Today, equipping this young workforce with AI readiness sits at the very heart of these myriads of initiatives.
Complementing these entry-level upskilling efforts, India’s Union Budget 2026-27 is pushing for skill development to be included even earlier into the talent pipeline. The government is embedding these capabilities directly into schools by committing to Content Creator Labs for AI, animation, gaming, and digital media across 15,000 secondary schools. This ensures that by the time the next generation enters the workforce, foundational digital skills are already ingrained[4].
These measures are designed to support Gen Z in navigating an evolving job market while giving businesses the opportunity to develop their talent and benefit from their digital native skills
A generation defined by change
Yes, the job market is more competitive than ever no matter where you are, but the very nature of work itself is also shifting. Far from lacking drive, this generation is navigating unprecedented complexity, balancing intense competition, rapid technological change, and global uncertainty while building their careers.
What Gen Z brings is a unique strength: fluency in technology. Smartphones, high-speed connectivity, and social platforms are second nature.
At the recent India AI Impact Summit, Prime Minister Narendra Modi referenced how the speed and trust with which the world’s youth are embracing AI, taking ownership of it, and using it, is truly extraordinary. Today, India is home to one-sixth of the world’s population and the largest youth cohort globally, while growing as both a creator and a rapid adopter of emerging technologies[5].
But in today’s economy, fluency alone is not enough. The real differentiator is AI literacy: those who actively experiment with AI tools, understand how to apply them, and integrate them into their work bring not just technical capability but new ways of thinking – unlocking productivity, innovation, and growth for the organisations they join.
The India AI Impact Summit along with the Voluntary Guiding Principles for Skilling and Reskilling in the Age of AI, endorsed by over 20 countries, offered the clearest signal on the next steps forward — investing in people is the precondition for any AI-led economic transformation. The commitment reinforces the global consensus that AI must augment human capability, not displace it. It also serves as a call to action for skilling systems to evolve alongside technology, ensuring that those entering the workforce can grow into future-ready leaders of AI[6].
We are already seeing this play out in practice. Recent research from IWG shows that Gen Z employees are instrumental in driving AI adoption across the workforce. Nearly two-thirds of younger workers are actively helping older colleagues learn and use AI tools – from hands-on coaching to practical tips that embed AI into everyday workflows. In India, there is also enthusiasm among professionals to seize AI and unlock value in their work. A study found that 94% of Indian professionals view mastering AI as vital to career advancement, one of the highest readings globally and 94% of Indian desk workers say they feel a personal imperative to master AI, with 61% already using AI tools in their day-to-day roles and 80% excited about AI automating routine tasks[7].
This enthusiasm and form of reverse mentoring seen from younger employees are delivering tangible results, improving collaboration and accelerating productivity. It also highlights a broader shift: younger employees are not just learning from organisations – they are actively shaping how work gets done.
In the AI era, initiative is the advantage
Of course, developing these capabilities requires initiative. Just as previous generations learned to code in their spare time or pursued additional qualifications, today’s young professionals must take ownership of building AI capability and broader future-ready skills. Increasingly, that learning happens beyond formal education – through online communities, peer networks and hands-on experimentation.
Planning a career in this environment requires a more intentional approach. Young people should be asking: “Where will I gain the best experience?” and “Am I building the skills future employers will value?” For those not yet in work, volunteering can play a critical role, offering a way to build practical experience, develop soft skills and demonstrate initiative in a competitive market.
Supporting talent through upskilling and flexible working
The onus cannot rest solely with individuals. Employers also have a crucial role to play in upskilling their teams and ensuring they have the best tools in the business. Companies that invest in training, mentorship and meaningful development opportunities will unlock enormous potential.
At IWG, we’re seeing this first-hand. We’ve invested in extensive training and development programmes, with hundreds of online courses, because keeping teams at the top of their game is essential in a fast-moving environment.
Employers who offer their teams flexibility with the ability to work in convenient locations closer to home, alongside supportive and innovative environments, will also be better positioned to engage and develop emerging talent, all whilst driving productivity. That’s because flexibility is no longer optional; it is expected. That shift is only accelerating, with 79% of 11–17-year-olds anticipating flexible working to be the norm by 2040.
An opportunity businesses can’t miss
Governments around the world are incentivising businesses to hire Gen Z because they recognise the opportunity: younger employees bring skills, entrepreneurialism, and innovation that can transform productivity and competitiveness. Young people are already adapting, by learning new tools, navigating uncertainty, and competing in historically challenging markets.
For businesses, those that invest in this generation will not only unlock extraordinary talent but also secure their own future in a competitive, AI-driven world.
About Author
The author is the Founder and Executive Chairman of International Workplace Group (IWG), the world’s largest provider of flexible workspace. He founded Regus in Brussels in 1989 and has been a pioneer in shaping the flexible workspace industry for more than three decades. Today, IWG operates a global network of workspaces across more than 120 countries. Mark is a prominent voice on the future of work, flexible working, commercial real estate and the evolving relationship between technology, businesses and the workplace.
[1] Transforming India with AI
[4] Government Accelerates Orange Economy; Expands Content Creator Labs and Skill Development Initiatives Nationwide
[5] PM’s address at India AI Impact Summit 2026
[6] India AI Impact Summit 2026 Witnessed Extensive Participation of Public
[7] Global Workplace Skills Study2025: Spotlight on India
