Job Struggles: It’s the Economy, Not AI, to Blame

Recent college graduates are facing a challenging job market, with economist Brad DeLong attributing their difficulties not to AI but to broader economic factors. In his analysis, DeLong highlights policy uncertainty and a sluggish economy as primary reasons for hiring slowdowns, particularly affecting entry-level positions. Despite low overall unemployment, graduates are disproportionately impacted, as the gap between graduate unemployment and general job rates reaches record highs. Concerns about trade, inflation, and regulatory environments lead companies to adopt a cautious approach, delaying hiring decisions. DeLong emphasizes that while employers are investing in AI infrastructure rather than new talent, they are not actively firing staff. This risk-averse climate hampers the chances for new entrants in the job market, signaling a shift away from the traditional value of a college degree. The conclusion: young professionals should focus on navigating a cautious job landscape shaped more by economic fears than technological advancements.

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