Young Americans have turned sharply more pessimistic about the labor market, creating the widest generational divide in job confidence globally, according to a Gallup report released Monday.

In 2025, only 43% of Americans aged 15 to 34 said it was a good time to find a job locally, 21 percentage points lower than adults aged 55 and older. Gallup said the U.S. stands apart because older Americans remained relatively upbeat even as younger workers grew increasingly negative about job prospects.

The shift reverses a long-standing trend in which younger Americans were typically more optimistic about employment opportunities than older generations. Since 2023, job market optimism among young Americans has fallen by 27 points, with the steepest declines among young women, college-educated workers and those not yet employed full-time.

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AI Restructuring Adds Pressure

The weakening confidence comes as employers continue cutting jobs and scaling back hiring plans.

U.S.-based employers announced 83,387 job cuts in April, up 38% from March, according to Challenger, Gray & Christmas. Technology companies led all sectors in layoffs, while artificial intelligence was cited as the leading reason for cuts for the second straight month.

Hiring plans also weakened sharply. Companies announced plans to hire 10,049 workers in April, down 69% from March.

The restructuring wave has spread across major technology firms including Amazon.com (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Oracle (NYSE:ORCL) and Snap (NYSE:SNAP), as companies redirect spending toward AI infrastructure and automation.

Workers Turn Defensive

Worker sentiment has weakened alongside hiring activity.

A recent New York Federal Reserve labor market survey showed the share of workers expecting to switch employers fell to 9.7%, the lowest level since 2021. Job satisfaction tied to wages and promotion opportunities also dropped to record lows.

Broader economic sentiment has also weakened. The Gallup Economic Confidence Index fell to -38 in April, below pandemic-era lows, according to data highlighted by The Kobeissi Letter.

The pullback in job mobility was steepest among workers under 45 and women, closely matching Gallup's findings on youth pessimism.

Gallup noted that concerns around automation and AI replacing entry-level roles may partly explain the decline in confidence, though the survey did not directly measure AI fears.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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