{"id":6374,"date":"2026-09-01T08:10:18","date_gmt":"2026-09-01T08:10:18","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=6374"},"modified":"2026-09-01T08:10:18","modified_gmt":"2026-09-01T08:10:18","slug":"it-turns-out-that-gen-z-didnt-quit-on-careers-the-work-force-quit-on-them","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=6374","title":{"rendered":"It turns out that Gen Z didn\u2019t quit on careers. The work force quit on them"},"content":{"rendered":"
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Paul Osterman, professor emeritus at the MIT Sloan School of Management, has spent decades testing that kind of assumption against hard labor-market data, and in his new book, he says the evidence points in the opposite direction. \u201cIs that rhetoric really reflected in the attitudes of younger people?\u201d Osterman asked. \u201cThe evidence is that it\u2019s absolutely not.\u201d<\/p>\n

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The labor economist has built his career studying job quality, from long-term care workers to middle managers to what makes some employers create \u201cgood jobs\u201d and others not. His book, Disposable Workers: The Transformation of Employment<\/em>, is his latest attempt to quantify a shift he believes has been building since the postwar era: what employers are willing to offer.<\/p>\n

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The 35% number<\/h2>\n

Drawing on an original survey of more than 6,000 U.S. adults aged 24 and up, plus nearly 100 interviews with workers, employers, and staffing agencies, Osterman calculates that 35% of the American workforce, more than 55 million people, now falls into what he categorizes as \u201cdisposable\u201d work: freelancers, contractors, gig workers, and a group he named \u201cmarginal workers.\u201d<\/p>\n

Marginal workers are W-2 employees of an organization who are not treated as real members of it\u2014hired with an implicit understanding that they won\u2019t stick around or advance. \u201cThey\u2019re not really attached to the organization,\u201d Osterman told Fortune<\/em>. \u201cNo one has job security anymore, but these folks are hired with that expectation and are not going to be around for long.\u201d<\/p>\n

The category spans a surprisingly wide swath of the economy, from adjunct faculty and staff attorneys hired for single cases, to high-turnover retail and service jobs, to even contract employees embedded for years inside big tech companies without ever being on a path to full-time status. The point, Osterman added, is that they are all hired with the expectation of high turnover: that they\u2019ll be disposable, in other words.<\/p>\n

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Gig work is a rounding error by comparison. \u201cGig jobs are not really the story,\u201d Osterman said. \u201cThey\u2019re about 2% of the workforce.\u201d Contracting and marginal employment, he argues, are the much larger and more consequential trend hiding in plain sight. Osterman said he was surprised by the \u201cmagnitude\u201d of what he found. \u201cI mean, 35% is a big number.\u201d<\/p>\n

Debunking the generational narrative<\/h2>\n

Osterman said he specifically tested the idea that younger workers are voluntarily opting out of traditional careers in favor of entrepreneurial reinvention, financial risk-taking, or gig flexibility.<\/p>\n

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\u201cThe only shift in the attitudes of young people is towards work-family issues,\u201d he said. \u201cThose are more salient for younger people than for older people. But the desire to get a real job and have a career? That\u2019s stable.\u201d<\/p>\n

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\u201cWe\u2019re in a different social strata,\u201d he said. \u201cAnd we kind of generalize our social strata to the world. That\u2019s not actually accurate.\u201d A survey of young workers in Ohio or Indiana, he argued, would tell a very different story than one drawn from Manhattan or Brooklyn.<\/p>\n

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Osterman\u2019s finding lands as a key, complicating datapoint to the narrative that Gen Z has embraced \u201ccareer minimalism,\u201d or trading \u201cthe rigid career ladder for the career lily pad,\u201d per the findings of Glassdoor and chief economist Daniel Zhao, who told Fortune<\/em> that his findings actually agree with what Osterman discovered. \u201cWe are still in a job market where hiring is very sluggish and workers feel stuck in their careers.\u201d<\/p>\n

Zhao pointed to one concrete sign the strain is intensifying rather than easing: mentions of burnout in Glassdoor reviews were up 43% in May compared with a year earlier, a trend he attributes to accumulated pressure from layoffs, leadership demands, and AI-driven anxiety, with little relief in sight. He rejected the idea that any of this reflects diminished ambition on the part of Gen Z: \u201cIt\u2019s not because of a lack of ambition or laziness or that sort of thing. In fact, it\u2019s the opposite\u2026 they are just as committed to growing their career as their peers from previous generations were at the same age.\u201d<\/p>\n

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\u201cI don\u2019t think that attitudes are very different between Gen Z and previous generations,\u201d Zhao added. \u201cThe work that is available\u2026 [has] changed more than people\u2019s attitudes towards work.\u201d<\/p>\n

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A 25-year arc, not a new trend<\/h2>\n

Osterman traced the roots of this transformation back to the breakdown of the postwar labor \u201caccord\u201d\u2014a period of high unionization, employer caution about provoking unions, and political support for long-term, stable employment that began fraying decades ago. He pointed to a famous, familiar inflection point: President Reagan\u2019s 1981 firing of striking air traffic controllers, which Osterman called a signal that it was \u201copen season on post-World War II employment systems.\u201d<\/p>\n

From there, he traced a longer, also familiar arc: the financialization of corporate strategy, rising competitive pressure, the legal fights over whether staffing agencies counted as the \u201cemployer of record,\u201d and a shift in management ideology toward \u201ccore competency\u201d thinking\u2014the idea that most workers simply aren\u2019t essential to a firm\u2019s core business and can be treated accordingly.<\/p>\n

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He also pointed to attitude, not just economics, as a driver. Osterman cited a McKinsey report claiming 95% of a firm\u2019s value is delivered by just 5% of its workforce as telling evidence of how corporate America has come to see the majority of its employees. \u201cThat says something about the attitude towards the rest of the workers,\u201d he said.<\/p>\n

Where AI fits and doesn\u2019t<\/h2>\n

Osterman was careful to separate his findings from the current AI panic. \u201cThis trend preceded AI,\u201d he said. \u201cI think it\u2019ll be exacerbated by AI, but it\u2019s not an AI story.\u201d He argues that AI\u2019s primary effect so far has been to inject uncertainty into employer staffing decisions\u2014and that uncertainty itself pushes companies further toward disposable labor arrangements, regardless of whether AI ultimately displaces large numbers of jobs. \u201cNo one has any idea what the overall impact of AI will be,\u201d he said. \u201cBut I\u2019m pretty confident it will exacerbate the move towards disposability because of the uncertainty it introduces.\u201d<\/p>\n

Zhao\u2019s data adds a wrinkle worth noting alongside Osterman\u2019s caution: Glassdoor research from his colleague Chris Martin found Gen Z workers are the most critical of AI in workplace reviews, ahead of millennials and Gen X. \u201cI think they are positioned well to benefit from it in the long run, but understandably, they are very skeptical of AI right now.\u201d<\/p>\n

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The apparent contradiction has a structural explanation. Goldman Sachs research, Zhao noted, suggests mid-career workers tend to struggle most during technological transitions: they\u2019ve built up experience and skills that may no longer be as relevant, with 10 to 20 years of working life still ahead of them. Younger workers, by contrast, adapt quickly and move toward opportunity. \u201cThere is a lot of disruption,\u201d Zhao said, \u201cbut they tend to adapt very quickly.\u201d<\/p>\n

What makes Gen Z\u2019s relationship to AI different from prior generations\u2019 relationship to new technology, Zhao argued, is that the ambivalence is partly a function of familiarity. The same quality that makes them most critical of it also makes them most likely to use it and redirect it toward their own ends. He pointed to the sustained explosion of new business applications tracked by Census Bureau data since 2020 as one concrete signal: entrepreneurship has kept accelerating well past the pandemic, and AI may be a partial driver. \u201cIs it being partially driven by AI right now?\u201d Zhao said. \u201cI think the answer is probably yes.\u201d<\/p>\n

Osterman, for his part, hears something simpler in all the AI anxiety: \u201cPeople are freaked out. There\u2019s no question about that.\u201d But the mechanism he\u2019s confident about isn\u2019t mass displacement, it\u2019s that uncertainty becomes a management tool. Employers who don\u2019t know how their staffing needs will change in an AI-driven world will default to arrangements that preserve maximum flexibility, which means more disposable workers. \u201cMaybe you\u2019re going to need more people or different people, but you don\u2019t know,\u201d he said. The rage about AI is really rage about a long-fraying workplace contract.<\/p>\n

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But those bright spots are the exception. Pay is lower across every disposable category compared with standard employment, and Osterman found contractors and marginal workers report substantially lower job satisfaction than freelancers or traditional employees\u2014the group bearing the brunt of a labor market redesigned, in his telling, around cost control and flexibility rather than long-term investment in people.<\/p>\n

For this story,\u00a0<\/em>Fortune\u00a0journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.<\/em><\/p>\n

Read more Gas topped $4 daily in August for the first time. New U.S. strikes on Iran are sending oil prices even higher again<\/a><\/p>\n

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MIT’s Paul Osterman found 35% of the workforce has what he calls “disposable jobs” in his newbook of the same title. “I mean, that’s a big number.”<\/p>\n","protected":false},"author":1,"featured_media":6373,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[93],"tags":[],"class_list":["post-6374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gen-z"],"yoast_head":"\nIt turns out that Gen Z didn\u2019t quit on careers. 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