In a previous reading note post, I summarized NBC News reporting on graduates booing commencement speakers who praised AI, a sign of the broader unease many new graduates feel about the technology and its impact on their job prospects. This companion piece examines the job market itself.

In a recent NPR report, labor correspondent Andrea Hsu highlights new research that complicates the prevailing narrative. The assumption on many campuses is that AI is closing doors for young graduates. But economists at the Federal Reserve Bank of New York point to a different culprit: remote work.

Below are key highlights from the article:

• The surprising finding. Hsu notes the prevailing view on campus is that AI is driving the weak entry-level job market. But the New York Fed researchers point instead to remote work, at least for now, arguing that it accounts for nearly two-thirds of the increase in unemployment among young college graduates since the pandemic.
• What the numbers show. Comparing 2017 to 2019 with 2022 to 2024, Hsu reports, unemployment among college grads under 29 rose about 20 percent, while it dipped slightly for older grads. The gap was widest in jobs that can be done from home, and it grew as remote work increased fourfold.
• Why remote work hurts beginners. Hsu explains that the study originated from research inside a large technology company, where software engineers received about 20% more feedback when seated near colleagues than when working apart. Co-author Emma Harrington of the University of Virginia says remote arrangements make it harder for managers to train and mentor new hires, creating the biggest challenges for early-career workers.
• Where AI fits in. Hsu adds that the researchers also tested AI’s role by separating occupations with higher exposure to AI, such as engineering and accounting, from those with lower exposure, such as teaching and nursing. For the 2022–2024 period, AI exposure did not explain the gap. Harrington cautions that this could change: “It’s always hard to make guesses about what’s going to happen with generative AI,” she says. Hsu notes that AI’s impact may already be starting to emerge.
• Why it matters. The report warns that a difficult start can have lasting consequences. “Early-career experiences can have lasting consequences,” the authors wrote, noting that people who enter the workforce during a weak job market often face lower earnings and slower career advancement for years afterward.

Taken together with the commencement boos, Hsu‘s report adds a wrinkle to the story many students are telling about the job market. The anxiety surrounding AI is real, but the early evidence she cites suggests that, for now, where work happens may be playing a larger role than the technology itself.

Acknowledgement: This summary was generated using AI writing tools as part of my AI Explorations process. For more, see the original articles linked below.

Related Resource Links

• Remote work, not AI, has sidelined recent college graduates, research finds | NPR
• Remote Work Leaves Younger Workers Sidelined | Federal Reserve Bank of New York
• Student commencement boos are a sign of wider AI woes | NBC News