Recent reporting from The Washington Post indicates that AI-driven job substitution, tighter economic conditions, and extended careers among Baby Boomers have combined to create a particularly challenging job market for entry‑level Gen Z candidates. According to Revelio Labs data cited by the Post, the share of workers aged 25 and under fell from 14.9% to 8.8% between 2022 and 2025, with hiring inflows for this cohort dropping 45% compared to 2019. In a resource‑constrained environment, many employers have been reluctant to commit the time required for training and mentoring early‑career employees.

However, as noted in our 2026 Year-Ahead Investment Banking Outlook, the banking industry offers a counterpoint. Because investment banking operates through highly structured analyst programs, firms continue to recruit Gen Z talent aggressively, recognizing that early investment in junior analysts supports long‑term growth. As we noted in November, M&A activity is expected to expand as capital markets reopen and dry powder builds; younger workers will be necessary to facilitate the surge in dealflow, especially as recent analyst classes have been relatively small.