Recent graduates blame AI for hiring woes, economists debate the cause
Many new college graduates say artificial intelligence is making entry-level jobs harder to obtain, while economists point to other factors such as remote work.
Recent graduates, including Irene Chang and Jacqueline Kline, have each submitted over 450 job applications and still lack offers, leading them to suspect artificial intelligence is reducing entry-level opportunities. The Federal Reserve Bank of New York reports a 5.7% unemployment rate for recent graduates, above the 4.1% rate for all workers. Economist Erik Brynjolfsson notes a 16% relative employment decline for young workers in AI-exposed roles since late 2022, attributing it partly to the nature of AI training data.
Harvard economist David Deming argues the timing of the hiring slowdown predates ChatGPT and points to remote work reducing firms' willingness to train junior staff remotely. University of Chicago economist Anders Humlum cites a study showing companies that spend heavily on AI actually increased entry-level headcount by 12% after adoption. All three agree the labor market is undergoing a significant transformation, though they differ on AI’s current impact.
Why it matters
Understanding why recent grads struggle to find work informs policy and career decisions in a shifting economy.
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