Young and unemployed? Remote work, not AI, may be the problem, study finds
Researchers say remote-capable jobs account for 64% of the rise in unemployment among young college graduates, while artificial intelligence has little effect.
- The New York Fed reported Monday that remote work drives 64% of the recent surge in youth unemployment, with unemployment for young college graduates climbing to 5.6% from 3.6% in 2019.
- Remote work weakens hiring incentives by impeding on-the-job training, researchers wrote; training fresh graduates on distributed teams is harder from afar, making mentorship difficult.
- While unemployment for college graduates 28 or younger in 'remotable' roles spiked, jobless rates for older workers in those same fields declined slightly, the Federal Reserve Bank found.
- "The high unemployment rates of young college graduates are particularly concerning because early-career experiences can have lasting consequences," the authors said. One Fortune 500 company hired fewer inexperienced workers during the pandemic due to mentorship challenges.
- Despite 71% of Gen Z workers preferring hybrid arrangements and only 6% wanting fully on-site work, businesses remain reluctant to hire inexperienced staff into remote roles, complicating career entry.
23 Articles
23 Articles
Which Workers Are Being Hit Hardest By The Rise Of Remote Jobs
The rise of remote work may be contributing significantly to higher unemployment among young college graduates, according to new research from the Federal Reserve Bank of New York. The report found that unemployment among recent college graduates increased from 3.6% in March 2019 to 5.6% in March 2026. New York Fed economists estimated that remote work could explain roughly 64% of that increase.According to the researchers, employers may be less…
Associated Press News
Young and unemployed? Remote work, not AI, may be the problem, study finds
The rise of remote work since the pandemic has made businesses more reluctant to hire young, inexperienced workers and is the key driver of higher unemployment rates for recent college graduates, a study released Monday has found.
Remote work -- not AI -- has sidelined recent college graduates, research finds
Research from the New York Fed finds that younger college graduates have been sidelined by remote work in recent years, as companies may be reluctant to hire those needing more training and mentoring.
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