Gen Z optimistic but anxious as AI narrows the path into work

Young Australians are increasingly worried that AI will eliminate junior roles. Employers don’t yet know how AI will change their junior hiring needs but are expecting more of the next gen than ever, asking for more real-world experience and human skills, like critical thinking and judgement.

According to findings from the 2026 Hatch Hotlist survey of 2,008 young Australians and 152 employers, young Australians are caught in an experience paradox that is worsening with the rise of AI and getting an entry level role has never been more competitive.

The research found that 95% of candidates say paid work experience is important for getting a job upon university graduation, but more than half say the biggest barrier to getting started is that most opportunities require students to already have experience.

The survey found 81% of Gen Z and 74% of Millennials are concerned AI will reduce or eliminate junior and early-career roles. Despite that, 84% of young Australians feel optimistic about their career growth, up from 79% in 2025 and 75% in 2024.

Young Australians are flocking to work at the world's top AI companies, with a wave of AI-first employers entering the Hatch Hotlist for the first time in 2026. Canva has also knocked Google off the top spot for the first time, as the Australian success story pushes deeper into AI.

The rise of Canva shows that young Australians want to work at companies putting AI at the forefront of what they do. 

Despite some uncertainty, young Australians are building the skills and experience they need outside the usual channels: running their own businesses and side hustles, learning AI skills on YouTube, and creating pathways into work that didn't exist for previous generations.

The biggest takeaways from Hotlist:

As AI reshapes entry-level roles there’s new emphasis on real world experience and human skills.

1. Work experience is critical to find a job - 95% of candidates say paid work experience is important for getting a job upon graduation.

2. Young people are being asked to show up more prepared, more polished, more experienced, most opportunities require students to already have experience. 

3. Internships, placements, paid part-time work, project-based experience: these are not nice-to-haves, they are required. 

Hatch co-founder and CEO Adam Jacobs has been struck by the challenges facing university students entering the workforce today.

"Gen Z are trying to get into a workforce where the ticket to entry is harder to earn than it's ever been, and yet they're still backing themselves,” Jacobs, who also co-founded THE ICONIC, said.

“This is a generation that wants to work at the AI companies changing the rules, and they're more confident in their long-term careers than they have ever been.”

Anxious, but optimistic

Employers are just as uncertain about what's coming. Almost 4/5 believe AI will change their early-career hiring volume, but 34% don't know how. More than a quarter expect to hire fewer juniors, 22% expect no change, and 17% expect to hire more.

Jacobs said the findings point to a generation adapting to a career ladder being reshaped beneath them.

"What strikes me most is how fast Gen Z is adapting to AI," Jacobs said.

"They're not waiting for permission, a training program or a memo from the top. Their adaptability is often running ahead of the organisations trying to hire them."

Canva takes the top spot

Canva has taken the number-one position on the Hatch Hotlist for the first time, ahead of Google and debutant Apple. The Australian-founded company was recognised for its homegrown-to-global story, AI-first product vision and culture of learning and growth.

The rise of Canva shows that young Australians want to work at companies putting AI at the forefront of what they do. 

Growth and development opportunities remain candidates' top job priority, and Canva has built its reputation on exactly that.

“We’re so proud to be recognised as the place where great talent wants to contribute their skills to our crazy big goals! We’ve been intentional about our culture since day one, and it’s wonderful to see that our focus on learning and growth of our team, alongside our strong AI-first product vision, is truly resonating with the talent of the future. Creating a workplace where everyone feels responsible for the culture and our product ensures great people can do the best work of their lives,” said Jennier Rogerson, Chief People Officer at Canva.

OpenAI and Anthropic are the first generative AI companies to enter the list, alongside fellow newcomers Notion, Coca-Cola, Coles, Mecca and Accor.

Despite the upheaval caused by AI, the fundamentals of a desirable job haven't changed much. Growth and learning opportunities remain candidates' top priority, followed by salary, while making a positive impact on the world has climbed from fourth to third place.

The experience gap

Work experience is proving to be the biggest barrier to a job for young Australians. Almost all (95%) candidates say paid work experience is important to securing a role after graduation, but 51% say most opportunities already require experience they don't have.

Employers are raising the bar in other ways too, increasingly prioritising judgement, critical thinking, communication and initiative over a polished resume. Yet 83% of employers rate universities poorly on how well they prepare students for work.

Building their own way through

Rather than waiting on employers or universities to close the gap, young Australians are building their own pathways. 89% believe they have at least some AI capability, and candidates are twice as likely to have learned AI skills through YouTube as through employer training.

Side hustles are becoming a mainstream route into work. 85% of candidates either have one or want one, often using them to build practical skills, earn extra income, put together a portfolio, or create the experience employers are asking for.

Young Australians are no longer relying on one predictable career ladder. They're building several pathways at once, through self-directed learning, freelance work, creative projects and side businesses, to find a way into a labour market that expects them to arrive ready.

2026 Hatch Hotlist top 20 (alphabetical):

Accenture, Accor, Adobe, Amazon, Anthropic, Apple, Atlassian, Canva, Coca-Cola, Coles, Commonwealth Bank, Deloitte, Google, Mecca, Microsoft, Notion, OpenAI, Qantas, Woolworths Group (in alphabetical order)

Special mention: NSW Government, for strong and consistent nominations across a wide range of departments and disciplines.

About Hatch

Hatch is Australia's fastest-growing junior talent platform, helping young Australians find work where they fit best. Hatch helps employers source and attract talent through AI matching and rich profiles, and has a community of more than 500,000 young professionals, with hundreds of top employers using Hatch to hire each month.

Media contact: Nancy McDonald nancy@nmdpr.com or press@hatch.team