Remote work—not artificial intelligence—is the primary force sidelining young college graduates in the post-pandemic job market, according to new research from the Federal Reserve Bank of New York. Unemployment among grads under 29 rose about 20% from 2022 to 2024 versus pre-pandemic levels, even as older grads’ joblessness edged down. The study links the gap to a sharp rise in remote arrangements, which make it harder for managers to coach and for new hires to learn by osmosis; engineers who sat near colleagues received roughly 20% more feedback than distant peers. A Fortune 500 tech firm in the analysis shifted hiring away from new grads as it went remote, then reversed course after imposing a strict return-to-office policy. Exposure to AI did not explain the divergence in 2022–24, though researchers caution the picture could change. The Fed warns elevated early-career unemployment can leave lasting scars on earnings and progression.
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