Remote work, not AI, has sidelined recent college graduates, research finds

4 hours ago

Remote work, not AI, is identified as the primary factor reducing hiring of recent college graduates, based on research from the Federal Reserve Bank of New York.
Unemployment among young college graduates (under 29) increased by 20% post-pandemic, while it slightly decreased for older graduates, correlated with a fourfold rise in remote work.
Feedback for software engineers dropped significantly after the pandemic, especially affecting younger workers who rely more on mentorship, leading companies to hire older, more experienced employees for remote roles.
A return-to-office policy at a Fortune 500 tech company reversed the trend, resuming the hiring of new graduates, highlighting the link between remote work and mentorship challenges.
Analysis of broader occupational data shows unemployment gaps between recent and older graduates were larger in 'remotable' jobs compared to in-person roles, with remote work explaining nearly two-thirds of the rise in youth unemployment.
AI exposure did not significantly explain the unemployment divergence among young graduates in the 2022-24 period, though this could change in the future as generative AI evolves.
High unemployment early in careers can lead to lasting negative impacts, including lower earnings and slower career progression, emphasizing the concern over current trends.

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