Gen Z women are emerging as the new face of unemployment—and it’s not because they’re overly selective. Poor grades and declining health are the causes, new research warns

Millions of workers are preparing for layoffs and restructurings. Yet, a growing portion of Gen Z isn’t even entering the corporate ladder to begin with—and this group is increasingly composed of young women.

PwC’s new report, which analyzes Labour Force Survey data on 16- to 24-year-olds from 2020 to 2024, reveals that approximately 1 million young people in the U.K. are currently categorized as NEET (not in education, employment, or training). 

Female unemployment has been declining since the mid-2010s (excluding the spike during Covid), but this progress is now reversing. In 2024, the unemployment rate for young women increased from 9.5% to 11.8%—the steepest annual increase since PwC’s index started. 

And in the report, released last month, the overall NEET rate rose slightly to 12.8%, with the increase almost entirely driven by women: While the number of young men excluded from work decreased quarter-over-quarter, 13,000 additional women became disconnected from the job market.

Though young men still outnumber young women overall by a small margin, the figures are starting to tilt toward females. In simpler terms: the gap is narrowing—and rapidly. 

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

Just two years ago, young men were the dominant group in the NEET category. When first covered the trend in 2024, [they were]—and not actively seeking work, either—despite having recently graduated.

Experts at the time cited that the key reason for this dynamic was that women were more flexible in accepting job offers that didn’t perfectly align with their post-pandemic career goals. Essentially, [young men] were holding out for dream jobs that never materialized as the number of white-collar roles diminished. Instead of taking part-time or entry-level positions outside their field, they withdrew from the job market.

But the latest data indicates that for young women today, unemployment is less about choice. PwC identified two primary factors behind the sudden rise in female NEETs: poor academic performance and worsening health.

One in four young women who left high school with low grades end up NEET, compared to one in five young men. When low grades coincide with a health condition, the impact is severely compounded: a young woman with both challenges is nearly four times more likely to be NEET than the average young woman—48% versus 12.2%.

The reason this is suddenly driving unemployment now stems from a shift in career options for young people who aren’t high academic achievers, according to Lewis Maleh, CEO of global recruitment agency Bentley Lewis.

“When young men leave school with weak grades, there are well-established pathways available, such as construction, trades, and logistics—sectors that are currently hiring and don’t require further education,” Maleh explains. “Young women with the same low educational attainment tend to pursue retail, care, or hospitality. These sectors have been contracting and offer limited opportunities for advancement.”

It’s not “what are young women lacking?”—it’s “why haven’t we created the same employment pathways for them?”

The ongoing AI race is exacerbating this issue. The heightened focus on tech roles is further reducing the number of jobs accessible to women, who are less likely to have studied STEM subjects. Another recruiter, Zara Amiry, agrees that the female unemployment rate directly reflects the current availability of roles. “Certain jobs tend to attract more male applicants,” she added.  

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

Don’t have straight A’s? That’s not an issue. Amiry notes that experience is as valuable as education in recruiters’ eyes. 

“If you didn’t achieve top grades or study a highly employer-preferred subject, you could try gaining free experience while living at home,” she says, adding that the skills acquired will help you stand out and compensate for educational gaps. “It sounds odd, and you might think, ‘Why would I want to work for free?’ But securing that kind of experience wherever possible will help you outcompete other candidates for the role.”

She also pointed out that women tend to be more self-critical when applying for jobs. “Men are more likely to apply for roles even if they don’t meet every requirement, while women are less inclined to do so.” The takeaway? Apply regardless. You don’t need to meet every criterion to be worth interviewing. 

Whether you’re an unemployed man or woman, Maleh says the same principles apply: Get comfortable with AI, gain any experience you can, and don’t underestimate the power of your professional network.

“Learn to use AI tools effectively,” he says. “Practical AI proficiency doesn’t require a degree, and employers are eager for this skill.” 

If you can secure an apprenticeship—in digital fields, green energy, or health tech (areas significantly underutilized by young women)—that’s ideal. If not, don’t wait for the perfect opportunity to find you. “Build evidence of your capabilities, such as a portfolio or side project.”

“The candidates we place in top roles aren’t always those with the best grades; they’re the most inquisitive, adaptable, and well-connected individuals.”