3 Reasons New Grads Feel the Economy Is Against Them — and How To Handle It
If you know a new college graduate about to enter the workforce (or are one yourself), then you know that this current crop of graduates has a great deal of anxiety about the future — and, it seems, for very good reason.
According to recent reportage by Fortune, there’s a growing backlash among Gen Z graduates toward the increasingly AI-driven economy they are inheriting. At commencement ceremonies across the country in 2026, students have booed speakers who praised new innovations in AI and automation, reflecting generational fears about the elimination of entry-level jobs, the rising American cost of living and an evermore-unstable future.
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The traditional life route of “Go to college, get a career and amass a livable retirement savings” is feeling increasingly impossible for young graduates now more than ever. Here are three major reasons — and what new graduates can do about them.
AI Anxiety Is Creating a Weak Entry-Level Job Market
A primary fear among new college grads? That artificial intelligence is eroding away the very jobs designed for early-career workers looking to get their start. Per Fortune, studies have already found steadily declining hiring numbers for entry-level jobs that are vulnerable to automation.
That fear is especially intense for younger workers hunting for a post-graduation entryway into their career path; in fact, a 2025 Harvard Kennedy School poll found that approximately 59% of recent graduates view AI as the major threat to their career prospects.
One way to counter this threat is to build skills that AI has difficulty replicating: communication, leadership and creative problem-solving. Additionally, learning AI tools within their specific career field can also make a graduate more employable, rather than less.
Cost of Living Is Getting Higher
Even the college graduates who are finding jobs are encountering another problem: the cost of living in America is getting more and more expensive. Housing, transportation/gas costs, healthcare — all have become more costly over the last decade. To many young Americans, it feels like rungs of the economic ladder have been removed, making it impossible to ascend. On top of the growing cost of living, many Gen Z grads are also carrying student loan debt, which can make saving for rent deposits and future retirements extremely difficult.
To survive against a rising tide of costs, graduates should consider making life decisions that can decrease their budgetary bottom lines: Consider living with roommates in order to split rent, utilities and grocery bills. Carpool or take public transportation rather than try to finance a car and pay weekly for expensive gas. Develop a side gig like working for rideshares or delivery apps. Any or all of these can be used to cut into the increasing cost of living in the United States.
Mental Health Pressures Are Rising
That same Fortune report also noted that young graduates have become one of the most despairing age groups in the United States due to their growing anxiety levels (which are tied to economic instability, post-pandemic stress and doomscrolling on social media). While mental health may not feel like an economic driver, crushing stress, anxiety and depression can severely hamper your ability to function in your post-college life and your ability to earn a living.
Graduates should consider that a great deal of mental health can come down to setting boundaries. Specifically, setting a boundary by limiting their time on social media platforms that stew in negativity. Further, educating yourself economically and learning the nuts and bolts of finance can actually greatly reduce economic stress — the more you understand the financial world, the less scary it becomes and the more you find yourself able to see opportunities where once were only anxieties.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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