AI boom pushes many computer science grads into retail and food-service jobs

Two recent Census Bureau papers reveal that the introduction of ChatGPT in late 2022 triggered a rapid contraction in entry-level hiring for young workers in industries most vulnerable to AI, with a 12% decline in hires for ages 22 to 24 over ten quarters. The effect hit computer science and related majors hardest, cutting their chance of landing a job within a quarter after graduation by five percentage points and reducing first-quarter earnings by 13%, a drop comparable to a severe recession.

About half of the earnings loss reflects lower pay in the few AI-exposed jobs that remain, while the other half results from graduates moving into sectors like restaurants and retail. Although hiring volumes began to recover by early 2025, they did so from a reduced base, leaving a persistent employment and earnings gap for these graduates. Enrollment in computer science programs has also slipped, with an 8.4% decline in spring 2026 after earlier drops, indicating students are reacting to the changing job landscape. Broader surveys show underemployment among recent graduates remains high, with more than half working in roles that do not require a degree.