Generation Z is beginning to lose its footing in the global tech economy. Once celebrated as “digital natives” destined to dominate coding, design, and data jobs, they are now being edged out of the very industry they grew up in. The culprits? Artificial intelligence, corporate cost-cutting, and a wave of talent leaving for opportunities abroad.

Recent figures from compensation analytics platform Pave show that the share of employees aged 21 to 25 in large public technology companies has plummeted from 15 percent in January 2023 to just 6.7 percent by July 2025.

Private firms reflect a similar decline, dropping from 9.3 percent to 6.7 percent in the same period. The average age of workers in public tech firms has climbed from 34.3 years to 39.4 years in less than three years, underscoring a structural change in how companies hire and retain talent.

The implications are clear: roles once filled by young graduates, such as customer support, software engineering, and data analysis, are being automated or eliminated. A Stanford University study confirms the trend, finding that employment among 22 to 25-year-olds in automation-prone occupations has fallen by 13 percent since 2022. Even elite graduates are struggling, with 15 percent of Harvard Business School’s 2024 cohort still job hunting three months after graduation, compared with just four percent in 2021.

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The situation is even more complex in Nigeria and sub-Saharan Africa. With youth unemployment at record highs, young tech professionals are increasingly seeking opportunities abroad.

A World Bank report shows that Africa is losing its youngest and most educated workers to North America and Europe, with over 65 percent of emigrating Nigerian tech professionals under 30. They are being lured by better pay, global mobility, and the chance to work remotely for international firms.

Economists warn that this combination of automation and migration could deepen Nigeria’s “digital divide.” The Nigerian Economic Summit Group has raised alarms that sustained brain drain will stifle local innovation and reduce the talent pool available to domestic firms. Foreign companies are already drawing away the best software engineers, product designers, and data scientists, leaving startups and small businesses struggling to compete.

“Tech companies may be hiring fewer Gen Zers as part of cost-cutting efforts, but there’s also a strong push factor,” explained Samson Simon, chief economist at ARKK Economics & Data Limited. “Many young professionals want international roles that pay in dollars, while others are taking the entrepreneurial route, preferring to build their own startups rather than work for someone else. AI is only accelerating this transition.”

But some analysts argue that Nigeria’s tech sector remains distinct from global patterns. “I wouldn’t say that the proportion of Gen Z in Nigerian tech companies is declining yet,” noted Uchenna Uzo, professor of Marketing Management at the Lagos Business School. “Here, tech is still largely driven by young people. Many of the CEOs themselves are in their twenties and thirties.”

What is clear, however, is that the traditional entry point into tech is closing rapidly. As firms embrace AI and leaner operations, there is less room for training fresh graduates in roles that can be automated. This reality demands a new approach to preparing young people for the future of work.

Experts stress that the next wave of opportunities will favour those with rare, specialised skills. Fields such as cybersecurity, machine learning engineering, cloud infrastructure, and product management are seen as harder to automate and more globally competitive. “Unemployed youths must ensure they acquire high-demand skills that make them indispensable to employers,” Simon said.

At the same time, companies must adapt. Beyond simply cutting costs, firms that wish to thrive long term will need to invest in attracting and retaining young talent. This includes improving workplace culture, offering growth opportunities, and aligning with the aspirations of younger workers who increasingly value flexibility, purpose, and innovation.

For Nigeria and much of Africa, the challenge is twofold: keeping young people at home while also ensuring they are equipped for the global digital economy. Without deliberate action, the shrinking presence of Gen Z in tech could exacerbate existing unemployment, deepen inequality, and slow the continent’s drive toward a knowledge-based economy.

Meiza Nigeria