Remote work -- not AI -- has sidelined recent college graduates, research finds

New research finds remote work has sidelined younger college graduates since the pandemic. Maksym Belchenko/iStock / Getty Images Plus hide caption

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The buzz on college campuses is that AI is disrupting the job market for young college graduates.

But new research from the Federal Reserve Bank of New York finds that the culprit may be something else: remote work.

An analysis of federal employment data, paired with a deep dive into the flexible work arrangements at one unnamed Fortune 500 tech company, reveals that companies are less likely to hire recent college grads into occupations that can be done remotely.

Researchers speculate that employers are reluctant to put such workers in a setting where it's harder to absorb lessons from coworkers.

The researchers found the unemployment rate among younger college grads — those under the age of 29 — rose 20% after the pandemic, while unemployment among older college grads fell slightly.

The study compares unemployment rates pre-pandemic, from 2017 to 2019, with unemployment rates after the pandemic, from 2022 to 2024.