Jerome Powell, Chairman of the US Federal Reserve, admitted on Wednesday that Gen Z kids are having a tough time finding jobs. He confirmed that hiring is a “nightmare” and acknowledged that the labor market is hard. “Kids coming out of college and younger people, minorities, are having a hard time finding jobs. So you’ve got a low-firing, low-hiring environment,” he said.

The recent jobs report published by the Bureau of Labor Statistics (BLS) indicates that Jerome Powell is right about his comments on Gen Z. Unemployment has seen a rise to 4.3% with a decrease in average hourly earnings of 0.1%. However, job growth was seen only in the healthcare sector, but it was offset by losses in other departments. The federal government and mining sectors faced the most job cuts with a freeze in hiring.

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Job Search For Gen Z Becoming Harder, AI Replacing Talented People: Jerome Powell

Apart from the 4.3% unemployment rate, the Black unemployment rate climbed above 7% in August. Even recent graduates are unable to net a well-paying job based on their degree. Jerome Powell needs to do more to make the job market easier for the Gen Z generation. Job seekers are having limited options due to geopolitical uncertainty that is affecting leading companies.

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Chief Economist Torsten Slok said ahead of the FOMC meeting that the US has more unemployed people than job openings. To keep in context, there are 7.4 million unemployed people in America with only 7.2 million job openings available. AI is also a cause of concern, where the technology is replacing talent. Fed Chief Jerome Powell said that AI is also a threat to Gen Z’s job prospects. “There’s certainly a possibility that, at least in the beginning, AI will replace a lot of jobs, rather than just augmenting people’s labor.”