As Gen Z faces the white collar freeze in hiring, law and business school applications are soaring | Fortune

"Good news for law schools and MBA programs: applications are on the rise. Amid a challenging job market, students are turning to what they see as a safer bet-skilling up in hopes of becoming more attractive to prospective employers. Gen Z graduates have faced a difficult path to landing full-time roles out of college. The entry-level job market has been challenging, with limited opportunities and the threat that AI tools will automate their roles."

"Instead of facing the bleak job market head-on, law school and MBA programs buy more time to figure out what's next while safeguarding themselves against the technology. The numbers show just how anxious recent grads are. The current pool of applicants to American Bar Association-accredited law schools is 33% larger than it was this time last year, according to data from the Law School Admission Council."

"Panic about applying to higher education amid economic anxiety is not a new phenomenon. From the 2008 financial crisis to COVID-19 lockdowns, demand for higher education typically comes as a strategic move to shield against economic downturns ahead, such as a recession. That's exactly what the younger generation feels it is, the latest "recession indicator." Whether or not that caution signals a downturn or if people feel worse about the economy, will unravel over time."

Applications to American Bar Association-accredited law schools are 33% larger than they were a year earlier, and graduate management education demand rose again in 2025 after prior growth. Recent college graduate unemployment exceeded 5% in August, higher than the national 4% rate. Gen Z faces limited entry-level opportunities and potential AI-driven automation of roles, prompting many to pursue law or MBA programs to upskill and buy time. Historical patterns show increased higher-education demand during downturns such as 2008 and COVID-19. Whether rising applications signal an imminent recession or heightened economic anxiety will unravel over time.

Read at Fortune