Gen Z Business Applications Jump 66% in June as AI and Job Strains Spur Startups
Updated
Updated · CBS New York · Aug 6
Gen Z Business Applications Jump 66% in June as AI and Job Strains Spur Startups
3 articles · Updated · CBS New York · Aug 6
Summary
Gen Z filed 66% more business applications in June than a year earlier, Bank of America Institute data showed, outpacing every other generation in a broader U.S. startup surge.
More than 531,000 U.S. business applications were filed in June, according to the St. Louis Fed, with researchers tying Gen Z's rise to stronger interest in self-employment and weaker prospects in traditional hiring.
AI is lowering startup costs and speeding execution: tasks that once took three months and about $15,000 for a developer can now be done over a weekend, Columbia's Angela Lee said.
Lower-income households accounted for 25% of new businesses, up from 20% in 2020, suggesting the entrepreneurship boom is spreading beyond elite campuses and wealthier founders.
The shift comes as entry-level work is being reshaped by automation—38% of employers in a ZipRecruiter survey said they had moved basic data-processing tasks from junior workers to AI.