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The New York Fed blames remote work, not AI, for college grad unemployment. 

Jun 03 2026

The New York Fed blames remote work, not AI, for college grad unemployment. According to Liberty Street Economics, the New York Fed’s blog, Gen Z’s desire for remote work can explain 64% of the recent increase in unemployment for young college graduates. Additionally, it claims managers may not want to hire new grads onto remote teams because it’s more difficult to train them online versus IRL. This comes as experts battle over whether AI is causing shrinking job opportunities, with some warning that the tech is causing layoffs and others arguing that there is little proof to back it’s the main driver. There’s also a clear tension between Gen Z and how they view AI in their careers amid the sparse job market. YPulse data shows 55% of 18-24-year-olds think AI will take over people’s jobs, and more agree that AI is interfering with their career paths (53%) than those who see it as a future career path for themselves. (Business Insider)

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