Gen Z representation in major tech companies has declined over the past two and a half years, while the average employee age has increased. Experts warn that AI automation of entry-level roles threatens to slow innovation and create future talent shortages.
Gen Z representation in major tech companies has declined over the past two and a half years, while the average employee age has increased. Experts warn that AI automation of entry-level roles threatens to slow innovation and create future talent shortages.
Over the past two and a half years, the percentage of workers aged 21-25 in large public tech companies has dropped from 15% to 6,8%, according to data from the Pave platform covering more than 8,300 companies. Private firms show a similar trend, with the share decreasing from 9,3% to 6,8%.
Meanwhile, the average age of employees in the industry has risen sharply. In January 2023, it was 34.3 years, but by July 2025, it reached 39.4 years. Essentially, the industry is now sustained by millennials who are protecting their positions amid economic uncertainty, tariffs, inflation, and AI workplace automation.
«If you’re 35 or 40, you have skills that AI can’t yet replace. But if you’re 22 and your job revolves around Excel, you can easily be displaced by an algorithm,» explained Pave CEO Matt Schulman. He added that mass reductions in junior roles and the implementation of AI agents are eliminating career ladders for Gen Z, which could seriously hamper innovation and create a talent vacuum in the future.
In the US alone, companies announced more than 800,000 layoffs between January and July this year — a 75% increase from the previous year. «The current cutbacks and shortage of entry-level vacancies put Generation Z in an extremely difficult position,» added Justworks HR Director Jeri Doris. Meanwhile, young professionals themselves are increasingly choosing fields other than IT.
Experts also see opportunities: Gen Z could benefit from fresh perspectives on AI use, quick adaptation, and new skills. Experts advise them to focus on certifications, freelance projects, online portfolios, and areas such as UX, AI ethics, and cybersecurity. «Employers are reconsidering degree requirements. Today, the right certification can be more valuable than many years of experience,» noted LinkedIn Editor Priya Rathor.