The narrative says Gen Z can’t get hired. The data says they can — if they know AI.
A LinkedIn study published August 18 found that while young workers face the toughest job market in years, they are disproportionately landing the fastest-growing, highest-paying AI roles. Gen Z workers make up more than two-thirds of hires for two in-demand positions: forward deployed engineer and AI engineer, with median salaries of $199,000 and $166,000 respectively. Millennials account for 60% of new hires for head of AI roles, which pay a median of $236,000.
The same week, DataCamp’s State of AI Careers 2026 found that AI and data job postings surged 80% year on year, with AI engineering roles up 255% — the single highest growth rate of any role analysed across two million postings in 85 regions.
The career ladder hasn’t disappeared. It relocated.
The Paradox: Struggling in the Old Economy, Thriving in the New
The LinkedIn data lays out the contradiction sharply. The unemployment rate for workers aged 22 to 27 was 7.2% in June 2026, and 5.7% for recent college grads in the same age group — compared to 4.1% for all workers, according to the US Census Bureau and Bureau of Labor Statistics.
Yet in AI-specific roles, the same generation is outperforming everyone else.
“To see them taking advantage of the AI labour market in such a robust way was surprising,” Kory Kantenga, LinkedIn’s Head of Economics for the Americas, told CNBC. He noted that Gen Z workers have been able to “take advantage of this moment” to secure high salaries and move into leadership positions.
The median salary for a typical AI role is $177,000, according to LinkedIn’s analysis — more than double the $80,000 median for non-AI roles. The median annual salary for workers aged 25 to 34 across all occupations was $60,320 in the second quarter of 2026, per Federal Reserve Bank of St. Louis data. The gap between an AI engineer’s pay and a typical young worker’s pay is roughly threefold.
What’s Driving the Surge
DataCamp’s research, reported by Forbes on August 19, analysed two million job postings from January 2024 to April 2026. The findings go beyond AI engineering:
- Generative AI engineering roles rose 197% year on year
- Data science managers saw roughly 20% growth and held the highest average salary at nearly $190,000
- Python developers, data architects, and machine learning engineers all showed significant growth
- Traditional roles like data analysts and business intelligence professionals grew by less than 50%
The driver is venture capital. Hundreds of new AI startups launch daily, and VC firms are pouring capital into applied AI and frontier model companies. That creates intense demand for engineers who can build and deploy AI systems at scale. Startups tend to offer higher base salaries plus equity, hybrid work options, and benefits that legacy companies don’t match.
One Series B startup on Y Combinator is offering up to $250,000 for an AI engineer, per its job posting.
The Skills That Matter
Technical skills are necessary but not sufficient. DataCamp found that communication skills appeared as a requirement across all 25 AI and data career paths analysed — alongside Python, SQL, and computer science. AI skills were identified as a core competency in 22 of 25 roles.
Employers want professionals who can not only build and train AI systems but explain their process, connect insights, and relay technical work to non-technical colleagues. The premium is on judgement, not just code.
LinkedIn’s data shows 91% of workers in AI roles hold bachelor’s degrees or higher. Nearly half of those hired for head of AI roles have graduate degrees, and 20% hold doctoral degrees. The education bar is rising even as the age bar falls.
The Gender Gap
The good news comes with a significant caveat. Only 26% of new hires in AI roles were women in 2025, compared with 50% in non-AI occupations, according to LinkedIn. Women make up one-fifth of hires for head of AI roles, 26% for director of AI roles, and just 18% for member of technical staff positions — three of the highest-paying AI jobs.
The only role where women are hired as often as men is data annotator, the lowest-paying AI occupation on LinkedIn’s list, with a median salary of $51,000.
“Women are less well-represented at every rung of seniority” in AI firms, Kantenga said. The AI jobs boom risks widening an existing pay gap along gender lines, not just educational ones.
The Challenger Context: Layoffs Falling, Hiring Rising
The hiring surge data aligns with the broader picture from Challenger, Gray & Christmas. US employers announced 33,429 job cuts in July 2026 — the lowest monthly total in two years, down 27% from June. Hiring plans reached 16,095 in July, up 47% from June and well above the 3,200 announced in July 2025. It was the highest July hiring total since 2022.
AI was cited as the leading reason for job cuts for the fifth consecutive month, at 10,970 cuts — roughly 33% of July’s total. But hiring is also increasing. Through July, companies announced plans to hire 107,500 workers, up 25% from the same period in 2025.
“The pace of layoffs fell dramatically this summer,” said Andy Challenger. “Hiring has also increased over last year by 25%, so while AI is shifting the labour market, it is not dismantling it.”
NZ Angle: The Skills Gap Is the Story
Goldman Sachs research published August 19 placed New Zealand among developed economies at the lower end of AI adoption. The Stanford Digital Economy Lab’s updated payroll data through June 2026 shows employment among workers aged 22 to 25 in highly AI-exposed US occupations standing 19% below where it would have been without AI exposure.
Jobs and Skills Australia’s research on generative AI and the labour market found no clear evidence so far of declining entry-level roles because of generative AI, noting that displacement remained limited, with most effects involving upskilling and redeployment.
For NZ, the relevant signal is the skills gap. 63% of NZ businesses want to hire people with AI skills, and 70% can’t find them, per Hays’ 2026 workforce trends. The DataCamp and LinkedIn data suggest that the workers who close that gap — regardless of age — will command significant premiums. The ones who don’t will face the compression Apollo’s research describes.
The career advice from LinkedIn’s Kantenga is direct: pursue computer science, build a portfolio of shipped projects, and “buffer yourself against any changes down the road.” The AI jobs window is open. Whether it stays open, and for whom, depends on how quickly the supply of skilled workers catches up to demand.
❓ FAQ
What AI jobs are growing the fastest in 2026? AI engineering roles top the list with 255% year-on-year growth, according to DataCamp. Generative AI engineering grew 197%. Other fast-growing roles include Python developer, data architect, and machine learning engineer. Data science managers command the highest median salary at nearly $190,000.
How much do AI jobs pay compared to regular jobs? LinkedIn’s data shows a median salary of $177,000 for AI roles, more than double the $80,000 median for non-AI roles. At VC-backed startups, AI engineers can earn up to $250,000. The PwC 2026 AI Jobs Barometer found a 62% wage premium for workers with AI skills.
Are young workers really getting AI jobs? Yes. LinkedIn found Gen Z workers make up over two-thirds of hires for forward deployed engineer and AI engineer roles. Millennials make up 60% of head of AI hires. This is happening even as young workers face 7.2% unemployment in the broader market.
What skills do employers want for AI roles? DataCamp found communication skills appear across all 25 AI career paths, alongside Python, SQL, and computer science. AI skills were core in 22 of 25 roles. Employers want candidates who can explain technical work to non-technical colleagues and apply insights to business decisions. A portfolio of shipped projects matters as much as formal education.
📰 Sources: LinkedIn, CNBC, DataCamp, Forbes, Challenger Gray & Christmas, Stanford Digital Economy Lab, PwC, Goldman Sachs, Hays NZ
