The proportion of Generation Z employees in global technology companies is declining sharply, as artificial intelligence (AI), cost-cutting strategies, and brain drain continue to redefine the digital economy.
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According to data from 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 slide, from 9.3 percent to 6.7 percent within the same period.
The figures point to a broad restructuring of the tech workforce, with companies prioritising efficiency and accelerating automation. Entry-level roles in software engineering, customer support, and data analysis positions traditionally filled by younger workers are increasingly automated or eliminated. Consequently, the average employee age in public tech companies has risen from 34.3 years to 39.4 years in less than three years.
A Stanford University study supports 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 remain relatively unaffected. Even elite graduates are feeling the squeeze: 15 percent of Harvard Business School graduates in 2024 were still seeking jobs three months after graduation, compared with just four percent in 2021.
Samson Simon, chief economist at ARKK Economics & Data Limited, described the situation as complex, linking the shrinking Gen Z presence to broader economic realities. “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 said.
The World Bank has also flagged an alarming trend in sub-Saharan Africa, where the youngest and most educated workers are increasingly leaving for North America and Europe. In Nigeria alone, more than 65 percent of emigrating tech professionals are under 30, many drawn by better pay, global mobility, and remote work opportunities.
The Nigerian Economic Summit Group (NESG) has warned that the brain drain could stifle innovation at home and widen the country’s digital divide as foreign companies continue to lure the best software engineers, product designers, and data scientists.
Experts argue that preparing for the future requires young people to acquire rare and high-demand skills that go beyond basic coding or entry-level roles. “Unemployed youths must ensure they acquire rare skills that are in high demand—making themselves indispensable to their employers,” Simon advised.
Professor Uchenna Uzo of the Lagos Business School added that companies must also do their part by investing in workplace culture and policies that attract and retain young talent. However, he cautioned against assuming the global decline mirrors Nigeria’s reality.
“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 noted.
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