Traditional career paths lose appeal as Gen Z turns to portfolio careers

Rising living costs, financial uncertainty, and the growing influence of AI are prompting young professionals to diversify their income streams and career paths.

Traditional linear career paths are becoming less appealing to Gen Z workers, with many opting for side hustles and multiple income pathways as they seek greater financial security and career resilience in the age of AI.

New research from International Workplace Group (IWG) found that a new career model is gaining traction among Gen Z workers – ‘portfolio careers’ – a more agile and diversified approach that combines multiple roles, side hustles, and entrepreneurial ventures, similar to Hong Kong’s well-known ‘slasher’ lifestyle.

Based on a survey of 1,000 Gen Z professionals in the UK, the study showed that 33% already have, or are considering, a side hustle.

*While the survey was conducted in the UK, HRO believes the results remain relevant to our readership in Asia.

Nearly half (48%) of respondents cited the need to earn extra income and strengthen financial security amidst rising living costs and inflation as their primary motivation for pursuing portfolio careers.

Beyond financial concerns, the trend is also being accelerated by AI, with 55% of respondents believing the technology will reshape their careers. In response, young professionals are proactively developing new skills and diversifying their income sources to stay adaptable as roles continue to evolve.

In fact, earning potential remains a key driver for career decisions. Among respondents who had changed jobs in the past three years, 30% said their main motivation was securing a higher salary, while 43% reported changing roles two to three times during this period.

Rather than climbing traditional career ladders, many Gen Z professionals are embracing what the report describes as ‘career lily pads’, whereby workers strategically move between jobs, industries, and projects to increase earning potential, broaden their skillsets, and stay ahead of financial commitments such as rent, bills, and other household expenses.

Hybrid and flexible working are also driving this shift. Nearly one-quarter (24%) of respondents said hybrid work reduces commuting time, freeing them up to reinvest in personal projects or additional income streams. Meanwhile, 65% of Gen Z respondents said they would be less likely to pursue entrepreneurship or multiple income streams if required to commute long distances daily.

ALSO READ: Beyond the "lazy worker" myth: Are legacy systems failing to reward young talent?