Exploring the Rise in Unemployment Among Recent College Graduates
For decades, recent college graduates enjoyed lower unemployment rates than their peers, but a shift has occurred since late 2018. Here’s why:
- Increasing Unemployment: Recent graduates now face higher unemployment rates—approximately 2 points above the overall workforce.
- Generative AI Misconception: Many attribute these trends to AI tools like ChatGPT. However, evidence suggests longer-term factors are at play, predating AI advancements.
- Sector Performance: Majors with high AI exposure haven’t consistently seen worse outcomes. In fact, some sectors with significant AI integration, like Engineering, show improved employment rates.
Alternative explanations for the unemployment spike include:
- Supply and Demand Dynamics: A higher number of graduates competing for jobs.
- Macroeconomic Trends: Broader economic slowdowns affecting hiring rates.
The conversation regarding generative AI’s impact requires a nuanced understanding.
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