By Folake Balogun

Copyright businessday

The proportion of Generation Z employees in technology companies is shrinking rapidly as Artificial Intelligence (AI), cost-cutting measures, and brain drain shift the landscape, raising concerns about the future of youth employment in the global digital economy.

According to data from the compensation analytics platform, Pave, the share of employees aged 21 to 25 in large public tech companies fell from 15 percent in January 2023 to 6.7 percent in July 2025. Private tech firms recorded a similar drop, from 9.3 percent to 6.7 percent over the same period.

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The figures highlight a broad restructuring in the tech workforce, with firms prioritising operational efficiency and accelerating the adoption of artificial intelligence (AI).

Entry-level roles in areas like software engineering, customer support, and data analysis, traditionally filled by younger workers, are being automated or eliminated. As a result, the average employee age in public tech companies has climbed from 34.3 years to 39.4 years in less than three years.

A Stanford University study proves this trend, showing that employment among 22 to 25-year-olds in automation-prone occupations has fallen by 13 percent since 2022, while older workers largely retain their roles.

Elite graduates are not immune to this as 15 percent of Harvard Business School graduates in 2024 were still job hunting three months after graduation, compared with just four percent in 2021.

Samson Simon, chief economist at ARKK Economics & Data Limited, said the situation is more complicated, linking the declining presence of Gen Z in tech to broader economic realities, including cost-cutting, the inflation squeeze, and Nigeria’s high youth unemployment.

“Tech companies might be employing fewer Gen Zers because they are trying to cut costs. Gen Zers are also opting for international jobs that pay in the almighty US dollar. Furthermore, AI is playing a role, and many talented young techies are choosing to start their own businesses instead of working for someone else,” he stated.

A World Bank report highlighted that sub-Saharan Africa has been losing its youngest, most educated workers to international markets, particularly to North America and Europe.

In Nigeria alone, over 65 percent of emigrating tech professionals are under 30, many lured by better pay, global mobility, and remote work opportunities, the report stated.

The Nigerian Economic Summit Group has also warned that brain drain in the tech sector could stifle innovation at home and widen the country’s digital divide, as foreign companies increasingly attract the best software engineers, product designers, and data scientists.

In preparing for the future, experts have said the solution lies in equipping young people with skills that go beyond traditional coding or entry-level tech roles.

“Unemployed youths must ensure they acquire rare skills that are in high demand—making themselves indispensable to their employers,” Simon stated.

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“It is not just for Gen Zs to prepare themselves to be more marketable. Tech companies also need to prepare themselves to attract the right young talent they need to grow their businesses,” Uchenna Uzo, professor of Marketing Management at the Lagos Business School.

He noted that tech firms must match this with deliberate investment in workplace culture.

But he cautioned against assuming the global decline applies directly to Nigeria.

“I wouldn’t say that amongst tech companies in Nigeria, the proportion of Gen Zs is dropping yet. Tech companies here work predominantly with young people, and many of their CEOs are also very young,” he said.