More Young Americans Are Starting Their Own Businesses as Jobs Get Harder to Find

Young Americans are turning to entrepreneurship more than before because finding entry-level jobs has become tougher. Many are choosing to create their own opportunities rather than wait for traditional jobs to open up.

The job market for young people has been challenging lately. While overall unemployment rates remain low, young adults often struggle to find work. This is partly because companies are hiring less frequently but not laying off many workers. With fewer new jobs available, young people have a harder time getting a foot in the door.

At the same time, there’s been a noticeable increase in new business applications, especially from Generation Z—the youngest group of workers. In June 2026, Gen Z business applications grew by about 66% compared to the previous year. This surge is much faster than for other age groups.

Technology, especially artificial intelligence (AI), is helping young entrepreneurs get started. AI tools can automate routine tasks and reduce startup costs, making it easier to launch a business without a big budget. Many young founders say they wouldn’t have started their businesses without AI.

But the rise in entrepreneurship isn’t only among well-off or highly educated young people. More lower-income households are starting businesses now than in previous years, showing that starting a business is becoming more accessible.

Still, the road isn’t easy. Recent college graduates face higher rates of unemployment and underemployment, and entry-level jobs now often require more experience and AI skills. Employers are shifting some basic tasks to AI, meaning new workers must come prepared with stronger skills.

Despite these challenges, the trend shows many young Americans are betting on themselves by starting their own businesses. They’re adapting to a tough job market by creating new paths rather than waiting for traditional employment to come their way.