A tough labor market for young workers may be partly due to AI

 A tough labor market for young workers may be partly due to AI.

Recent graduates are facing the most challenging job market in years, with unemployment rates for new grads reaching 5.6% in early 2026, up 1.6 percentage points from 2023. This rise has fueled concerns that AI is replacing many of the jobs recent graduates once sought. Junior roles often involve routine research, analysis, and writing tasks that can now largely be done with AI. Consistent with this intuition is empirical evidence that AI may be dampening demand for new hires.

Source: Stanford University
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