New York Fed Says Remote Work Drove 64% of Young Graduate Joblessness, Not AI
Updated
Updated · The Associated Press · Jun 1
New York Fed Says Remote Work Drove 64% of Young Graduate Joblessness, Not AI
5 articles · Updated · The Associated Press · Jun 1
College graduates aged 22 to 27 saw unemployment hit 5.8% in 2025, the highest outside the pandemic since 2012, as the New York Fed tied the deterioration mainly to remote work.
The study found unemployment in remotable jobs rose about 1 percentage point for young graduates from 2017-2019 to 2022-2024, while joblessness for workers 29 and older in those fields edged down.
Researchers said distributed teams make training and mentoring harder, weakening employers' incentive to hire inexperienced workers; remote work accounted for nearly two-thirds of the post-pandemic rise in under-29 graduate unemployment.
AI showed little effect when the authors compared occupations by AI exposure, and the worsening job picture predated tools such as ChatGPT.
Data from an unnamed Fortune 500 tech company matched the broader pattern: it hired fewer inexperienced workers when offices were closed, then shifted back toward younger hires after reopening, though remote teams still favored experience.
With Gen Z demanding hybrid work, how can companies onboard new talent without a traditional office?
Is remote work the real problem, or does it just expose flawed corporate training and mentorship?
As youth unemployment rises post-pandemic, are we facing a generational 'career scarring' crisis?
Remote Work Leaves Young Graduates Sidelined: The 2026 Youth Unemployment Crisis
Overview
Youth unemployment in the U.S. remains high in 2026, especially for recent graduates, leading to long-term risks like slower career progression, reduced earnings, and skill gaps. The rise of remote and hybrid work has made it harder for young talent to get informal mentoring and on-the-job training, causing companies to prefer experienced hires. This cycle makes it even tougher for graduates to gain essential skills and integrate into workplaces. As a result, universities are adapting their programs to focus on foundational skills and remote readiness, while companies and policymakers seek new ways to support young workers in a changing job market.