Gen Z and Millennial Owners Plan to Hire Despite Freeze

Last verified: October 16, 2026.

The short answer

New data shows young business owners are bucking the trend and planning to hire even as the broader market slows. According to Fortune, a Justworks and U.S. Chamber of Commerce report found 46% of Gen Z and millennial owners plan to increase staff in the next year, compared to only 19% of baby boomer owners. This divergence highlights a shift in how newer generations approach growth versus older ones.

The hiring gap between generations

Young owners are generally more confident about investing in their businesses right now. While older owners are sitting on their hands, younger owners are moving. But you have to look at the context. The Bureau of Labor Statistics reported a 1.9% nonfarm worker quits rate in August. Employers added just 29,000 jobs in September while unemployment rose to 4.2%. So the market is definitely tight everywhere.

What's different is the appetite for risk and growth. Younger owners see the slowdown as a chance to grab market share or build systems while competitors are freezing. They're also dealing with a workforce that looks different than it used to. ZipRecruiter's 2026 Graduate Report indicates that nearly 38% of recent and soon-to-be college graduates are considering starting their own business. Grads are piecing together experience through internships, side work, and stepping-stone roles instead of taking traditional entry-level paths.

Entry-level roles are disappearing

If you're planning to hire, you need to know that the bottom of the pyramid is shrinking fast. A Graduate Management Admission Council survey found that one in three employers are replacing entry-level roles with artificial intelligence. That means the pipeline for training new people from scratch is drying up.

My read? You can't rely on hiring a fresh grad and teaching them everything like you might have ten years ago. The math has changed. You either need to hire for skills that AI can't replicate, or you find ways to leverage technology to do the entry-level work yourself so you can focus on high-value tasks.

What this means for your hiring strategy

You're asking how to strategically hire and invest when the overall labor market is tight and entry-level roles are shrinking. Honestly, I'd stop trying to reinvent the wheel and look at what's already working.

First, consider fractional help. You don't need to hire someone full time for every gap. Oftentimes the position you need filled can be done by someone part time because they're very good at what they do. Get out of your own way and empower people to be in the position that you've hired them for.

Second, think about acquisition. If you can't find the right person or the market is too cold, buy a business that already has the team in place. I had two clients back in September of 2025 who acquired businesses in 30 days, an HVAC company and a medical transport company, both 10+ years old with employees and repeat customers. They didn't waste months posting jobs or training rookies. They stepped right into existing cash flow and systems. That's ownership. You take over the team that's already there and focus on growing what works.

Frequently asked questions

Why are Gen Z and millennial owners hiring more than older generations?

Data from Justworks and the U.S. Chamber of Commerce shows 46% of Gen Z and millennial owners plan to increase staff, while only 19% of baby boomer owners plan to do the same. Younger owners tend to be more bullish about investing in their businesses and less constrained by legacy structures or risk aversion.

Is the labor market actually getting worse for small businesses?

The broader economy is slowing down. Employers added just 29,000 jobs in September while unemployment rose to 4.2%, according to the Bureau of Labor Statistics. The quit rate was only 1.9% in August, indicating workers are staying put rather than moving for new opportunities.

How is AI changing entry-level hiring?

One in three employers are replacing entry-level roles with artificial intelligence, according to a Graduate Management Admission Council survey. This reduces the traditional pipeline for new talent and forces owners to hire for higher-skill tasks or use technology to handle routine work.

What should small business owners do about hiring right now?

Focus on fractional help, acquire businesses with existing staff, or hire for skills AI can't replicate. You don't need to hire someone full time for every gap. Oftentimes the position you need filled can be done by someone part time because they're very good at what they do.

Why are more graduates considering starting their own business?

Nearly 38% of recent and soon-to-be college graduates are considering starting their own business, according to ZipRecruiter's 2026 Graduate Report. Grads are piecing together experience through internships, side work, and stepping-stone roles as traditional entry-level paths shrink.

Sources

• Gen Z founders are hiring while Boomers' corporate America freezes | Fortune