LAGOS: The presence of Generation Z in the global technology workforce is shrinking rapidly as artificial intelligence (AI), cost-cutting strategies, and migration reshape the industry, raising alarm about the future of youth employment in the digital economy.
Fresh data from compensation analytics platform Pave shows that employees aged 21 to 25 now make up just 6.7 percent of staff in large public tech companies down from 15 percent in January 2023.
Private firms recorded a similar fall, sliding from 9.3 percent to 6.7 percent in the same period.
This shift reflects a wider restructuring across the sector. Tech giants are streamlining operations and leaning heavily on AI, leading to the automation or outright elimination of entry-level jobs once dominated by younger hires.
Roles in software engineering, data analysis, and customer support are among the most affected. Consequently, the average employee age in public tech companies has risen from 34.3 years to 39.4 years in under three years.
A Stanford University study confirms the trend, revealing that employment among 22- to 25-year-olds in automation-prone fields has dropped by 13 percent since 2022, while older workers largely hold on to their positions.
Even elite graduates are not insulated: in 2024, 15 percent of Harvard Business School graduates were still job hunting three months after graduation, compared to just 4 percent in 2021.
Samson Simon, chief economist at ARKK Economics & Data Limited, links the decline in Gen Z representation to multiple pressures.
Tech companies are cutting costs, AI is displacing certain jobs, and many young professionals prefer international roles with stronger currencies. On top of that, some are choosing to launch their own startups instead of taking traditional jobs,” he explained.
The World Bank warns that sub-Saharan Africa is losing a large share of its young, skilled workforce to Europe and North America.
In Nigeria, more than 65 percent of emigrating tech professionals are under 30, drawn by better pay, global exposure, and remote work opportunities.
The Nigerian Economic Summit Group has cautioned that this brain drain could slow innovation and widen the country’s digital divide.
Experts argue that the future lies in equipping young people with advanced, high-demand skills that go beyond traditional coding or entry-level tech functions.
“Unemployed youths must focus on acquiring rare skills that make them indispensable,” Simon advised.
Uchenna Uzo, Professor of Marketing Management at Lagos Business School, stressed that companies must also adapt. It’s not only about Gen Z making themselves marketable.
Firms must create workplaces that attract and retain young talent if they want to grow sustainably, he said, adding that a strong workplace culture will be crucial.
Still, Uzo cautioned against assuming the global downturn mirrors Nigeria’s reality.
In Nigeria, most tech firms are still youth-driven, with many CEOs themselves in their twenties and thirties, he noted.
As automation deepens and global competition intensifies, the balance between technology, talent, and opportunity will shape whether Gen Z thrives or is left behind in the digital economy.
