Gen Z Job Trends Shift to Second-Tier Cities with Tech and Health Growth
Recent research by ADP highlights a shift in the U.S. job market preferences for Generation Z, revealing a growing trend towards second-tier cities such as Raleigh, NC, Birmingham, AL, Milwaukee, WI, Baltimore, MD, and Austin, TX. These cities offer a combination of robust job opportunities, attractive salaries, and sectors with strong concentrations in technology, healthcare, and finance, making them competitive alternatives to traditional major metropolitan hubs like New York and Los Angeles. The analysis drew on payroll data spanning January 2019 to April 2025, focusing on employment trends among 20- to 29-year-olds across 55 metropolitan areas to identify these promising urban centers for young professionals.
The findings accentuate the importance of adapting to technological evolution, particularly AI integration, in securing entry-level roles. AI-driven automation is reshaping job functions by increasing efficiency through task automation and workflow optimization, which necessitates that new entrants into the workforce develop proficiency with these digital tools to maintain a competitive edge. Career experts emphasize the pivotal role of AI in recruitment processes and workplace productivity, urging job seekers to cultivate relevant technical skills to align with industry trends.
Additionally, behavioral trends among Gen Z candidates reveal a significant incidence of embellishment on job applications, with nearly half admitting to exaggerating qualifications or experience to attract employer attention. This trend, while observed across generations, is most pronounced in this cohort, highlighting the intense competition for entry-level positions and the pressures candidates face in a challenging employment landscape. Employer verification processes and applicant screening methodologies are increasingly critical to ensure compliance and maintain workforce integrity.
This evolving workforce dynamic in secondary cities presents notable implications for insurers and employers, particularly in terms of talent acquisition strategies, workforce planning, and regional economic development. Insurers focusing on employee benefits, health plans, and wage-related underwriting may find these markets favorable due to their growing economic bases and diversified industry presence. Understanding these migration and employment trends is vital for aligning insurance products with the needs of younger professionals who prioritize comprehensive benefits and career development opportunities.
Overall, the study underscores a strategic shift wherein both geographic and technological factors play central roles in shaping career outcomes for early-career professionals. Insurers and industry stakeholders must consider these factors when addressing workforce-related risks, benefits design, and compliance to remain responsive to an evolving labor market landscape.