(NewsNation) — Gen Z has several challenges coming out of college, both economically and technologically, in a rapidly changing job market.

A May report from SignalFire, a data-driven venture capital firm, suggests AI is responsible for a 25% decrease in the hiring of recent graduates by major tech companies, including Meta, Microsoft, and Google.

Other graduates‘ troubles may stem from the economy, with an annual Zip Recruiter study noting that inflation and salary expectations can stifle some new graduates.

Among 3,000 surveyed, 82% expected to have landed a job within three months of graduation. However, salaries can play a role in whether a student accepts or even applies for a job.

Nearly half of the students and graduates surveyed said they would look to negotiate their salary.

Some were not lucky enough to achieve it, with 42% of recent grads admitting they had to decrease their lifestyle expectations in order to compensate for not getting the salary they had hoped for.

Rising graduates surveyed expected a salary of $101,500, which differed significantly from the average pre-tax income of $68,400 received by graduates.

Flexibility is key to young workers, and those surveyed were no exception, with 90% admitting schedule flexibility is a priority.

Regarding hybrid work, 44% had hoped to work remotely at least 3 days a week, with 82% hoping for at least one day away from the office.

“Compensation is just one part of the equation,” Josh Welch, Aptia Group’s Chief Product Officer, told NewsNation.

“Today’s early-career talent is looking for benefits that reflect and support who they are – and who they’re becoming. The best employers are expanding their benefits to offer plans that meet your needs today like mental health support, financial wellness, and preventive care – which are top needs identified in surveys of young workers.”