Gen Z women are the new face of unemployment—and it’s not because they’re too choosy. Low grades and bad health are to blame, new research warns

Millions of workers are bracing for AI layoffs and restructurings. But a growing slice of Gen Z isn’t even making it onto the corporate ladder in the first place—and increasingly, they’re young women.

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PwC’s new Women in Work Index, which digs into Labour Force Survey data on 16‑ to 24‑year‑olds between 2020 and 2024, shows that around 1 million young people in the U.K. are now classed as NEET (not in education, employment, or training).

Female unemployment has been drifting down since the mid‑2010s (aside from the Covid spike), but that progress is now reversing. In 2024, the jobless rate for young women jumped from 9.5% to 11.8%—the fastest annual rise since PwC’s index began.

And in the latest ONS figures, released last month, the overall NEET rate ticked up to 12.8%, driven almost entirely by women: While the number of young men locked out of work actually went down quarter‑on‑quarter, 13,000 new women found themselves out of the job market.

While young men still slightly outnumber young women overall, the numbers are starting to skew female. In other words: the gap is closing—and fast.​

A sudden shift in unemployment: Why are young women being left behind?

Just two years ago, young men dominated the NEET data. When Fortune first covered the trend in 2024, one in five men under the age of 25 was unemployed—and not actively looking for work, either—despite having just graduated.

Experts at the time said the key reason for the phenomenon was that women were more flexible in accepting job offers that didn’t perfectly align with their career goals post-pandemic. Essentially, male Gen Z graduates were holding out for dream jobs that never materialised because the number of white-collar roles shrank. Instead of taking up a part-time job or an entry-level position outside their field, they disengaged.

But the new data suggests that for young women today, unemployment is less about choice. PwC pointed to two key drivers behind the sudden surge in female NEETs: poor grades and deteriorating health.

One in four young women who left high school with low grades end up NEET, compared with one in five young men. When low grades collide with a health condition, the damage compounds brutally: a young woman with both is almost four times as likely to be NEET as the average young woman—48% versus 12.2%.

The reason it’s causing unemployment now, all of a sudden, comes down to the sudden shift in career choices for young people who aren’t bookworms, says Lewis Maleh, CEO of the global recruitment agency Bentley Lewis.

“When young men leave school without strong grades, there are well-established routes waiting, like construction, trades, logistics, which are all hiring right now and don’t require further education,” Maleh explains. “Young women with the same low education go towards retail, care, or hospitality. These sectors have been shrinking and offer limited progression.”

It’s not “what are young women lacking?”, it’s “why haven’t we built them the same paths to employment?”

This is only being compounded further by the current AI race. The increase in focus on tech roles is further limiting the pool of jobs available to women, who are less likely to have studied STEM subjects. Another recruiter, Zara Amiry, echoes that the rate of female unemployment is a direct reflection of the roles available right now. “Certain roles tend to have more male applicants,” she added.

What to do if you’re unemployed and haunted by low grades

Don’t have straight A’s? Not a problem. Amiry says experience is as good as education in the eyes of recruiters.

“If you didn’t get top grades or study a super employer-friendly subject, you could try to get some free experience while you live at home,” she says, while adding that the skills attained will help you stack up, and make up for where you lack educationally. “It sounds silly, and it sounds like why would I want to work for free? But getting that sort of experience wherever you can will help beat another applicant out of the role.”

She also said that women tend to judge themselves more harshly when applying. “Men are more likely to apply for jobs even if they don’t meet every requirement, while women are less likely to apply.” The takeaway? Apply anyway. You don’t need to tick every box to be worth interviewing.

Whether you’re an unemployed man or woman, Maleh says the same rules apply: Get to grips with AI, get any experience you can, and don’t underestimate the power of your network.

“Learn to use AI tools properly,” he says. “Practical AI fluency doesn’t require a degree and employers are crying out for it.”

If you can get an apprenticeship—digital, green energy, and health tech are seriously underused, particularly by young women—then great. But failing that, don’t wait for the perfect opportunity to find you. “Build proof of what you can do, a portfolio, a side project, etc.”

“The candidates we place at the highest levels aren’t always the ones with the best grades; they’re the most curious, adaptable, and well-connected.”

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