- Telecommuting can account for around two-thirds of the increase in unemployment
- Young graduates need more personal time to learn and acquire vital skills
- AI’s impacts may continue to be felt as entry-level roles disappear
New data has revealed that artificial intelligence may not be solely responsible for a rise in youth unemployment. While that may account for some job losses, the Federal Reserve Bank of New York said hybrid work could also be to blame.
According to the data, telecommuting could explain about two-thirds (64%) of the increase in unemployment among university graduates.
It appears that unemployment actually started to rise after the pandemic, before the AI boom.
Is telecommuting to blame for rising unemployment?
Between 2017 and 2022, the data shows that the unemployment rate for students under the age of 29 rose from 3.1% to 3.7% – an increase of 20%. While older workers haven’t seen quite the same trend, younger workers have been more receptive, with New York Fed data revealing that 22-27-year-old graduates have seen the unemployment rate rise from 3.6% in 2019 to 5.6% in 2026.
And it may all have to do with the need for in-person work—newbies typically require frequent feedback, on-the-job coaching, and mentoring opportunities, which are generally stronger in office environments.
As a result, employers may be more inclined to hire already experienced workers rather than having to balance training new graduates across hybrid workplace environments.
The findings suggest that mandates to return to the office could actually be driven by a new for in-person graduate experience, rather than the usual productivity benefits that managers like to cite.
That said, artificial intelligence is not completely off the hook, and experts also warn that automation of entry-level roles and administrative tasks could ultimately lead to a shortage of skilled workers in the future. Furthermore, it is not excluded that AI will have a greater influence in the coming years.
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