Entry-Level Gen Z Graduates: Why They’re a Smart Investment for Small Business Growth

Recent narratives claim Gen Z graduates face a tough job market post-university, but what does the data say for Australia? According to the Australian Bureau of Statistics (ABS), youth unemployment (ages 15–24) was around 10.1% in early 2024, compared to the national average of 3.7%. While higher, it’s important to note that the youth unemployment rate has been steadily improving since the pandemic peak in 2020, which hit 15%.

Despite some challenges, entry-level roles are still available, and many small to medium businesses (SMEs) are perfectly positioned to tap into this talent pool — especially as internships have slowed and competition for skilled hires remains fierce.

The Business Case for Hiring Gen Z Graduates

1. Digital Native Advantage
Gen Z is Australia’s first fully digital generation. They spend over 3 hours daily on social media (eMarketer, 2023), and bring an innate understanding of platforms like TikTok, Instagram, and LinkedIn. For SMEs lacking in-house digital expertise, this is a ready-made resource that can enhance marketing and customer engagement at minimal cost.

2. Adaptability and Willingness to Learn
A survey by the Foundation for Young Australians (FYA, 2023) found that 65% of Gen Z value learning opportunities and growth when choosing jobs, meaning they’re likely to embrace training and mentorship. This adaptability is invaluable in fast-paced small businesses needing flexible team members.

3. Cost-Effective Staffing
Entry-level salaries in Australia start around $50,000 per year (Hays Salary Guide, 2023), which is often more affordable than hiring experienced staff. This allows SMEs to expand capacity without breaking the bank.

Ideal Roles for Gen Z in Small Businesses

• Digital marketing assistants — content creation, social media management, SEO

• Customer service reps — chat, phone, and email support with fresh communication styles

• Junior data analysts or admin — managing databases, digital records, and reports

• Sales support — cold outreach, lead generation, follow-ups

• Creative roles — video editing, copywriting, graphic design (often self-taught skills)

Are Internships Still Relevant?

Data from the National Careers Institute shows that only 27% of Australian small businesses offer internships, down from pre-pandemic levels. SMEs often lack capacity to support structured internship programs. Instead, hiring entry-level graduates directly can provide similar benefits — fresh talent eager to contribute, but with fewer administrative hurdles.

Why Small Businesses Should Prioritise Entry-Level Hires

In a competitive labour market, investing in Gen Z hires is about future-proofing your workforce. These graduates are socially conscious, eager to develop new skills, and can inject energy and innovation into your team. With mentoring, you can build loyal employees who grow with your business.

Final Thoughts

Hiring a Gen Z graduate isn’t just good CSR — it’s smart business. For SMEs cautious about budgets, entry-level staff offer cost-effective versatility, digital know-how, and fresh perspectives. In an evolving economy, these attributes are key to staying competitive.

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