AI is getting too much of the blame for graduate hiring prospects, and there could be a job perk that is actually behind it all

Date:
Wed, 03 Jun 2026 20:05:00 +0000

Description:
New York Federal Reserve Bank data shows that graduate unemployment started rising before AI was really a thing.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Remote work could account for around two-thirds of the increase in unemployment Young graduates need more in-person time to learn and pick up vital skills AI's impacts might continue to be felt as entry-level roles disappear New data has revealed that artificial intelligence alone might not be responsible for a rise in youth unemployment. While it may account for some job losses, the Federal Reserve Bank of New York said that hybrid working could also be to blame.

According to the data, remote work could explain around two-thirds (64%) of the increase in unemployment among college graduates. It seems that unemployment actually started rising post-pandemic, preceding the AI boom. Latest Videos From Watch full video here: Is remote work to blame for rising unemployment? Between 2017 and 2022, the data shows that college graduate unemployment for those aged under 29 rose from 3.1% to 3.7% a 20% increase. While older workers haven't quite seen the same trend, younger workers have been more susceptible, with New York Fed data revealing that 22-27-year-old graduates have seen unemployment rates rise from 3.6% in 2019 to 5.6% in
2026.

And it could all be to do with the need for in-person working entry-level workers typically require frequent feedback, on-the-job coaching and mentorship opportunities, which are generally stronger in office
environments. You may like LinkedIn exec says AI isn't causing a big drop-off in hiring just yet 'So much of the work is going to be done by agents': ServiceNow CEO says graduate unemployment could reach 30% because of AI
agents MIT AI expert warns against automating Gen Z entry-level jobs

As a result, employers could be more likely to employ already-experienced workers, instead of having to balance training new graduates across hybrid workplace environments.

The findings suggest that return-to-office mandates could actually be driven by a new for in-person graduate experiences, rather than the usual productivity benefits that execs like to cite. Are you a pro? Subscribe to
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That said, AI isn't totally off the hook, with experts also warning that automating entry-level roles and administrative tasks could ultimately lead
to a lack of skilled workers in the future. Furthermore, AI having a greater impact in the years to come has not been ruled out. Follow TechRadar on
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