Young and unemployed? Remote work, not AI, may be the problem, study finds.

Remote work is identified as the primary factor behind higher unemployment for recent college graduates, a New York Fed study finds, not AI. The analysis compares remotable occupations like software development with in-person roles such as nursing, showing the unemployment rate for young graduates in remote-capable jobs rose by about one percentage point from 2017-2019 to 2022-2024. Unemployment for grads under 29 in remotable fields reached about 3.7% on average in 2022-2025, up roughly 20% from pre-pandemic levels, while those aged 22-27 hit 5.8% last year. Older workers (29+) in remote roles saw slight declines, widening gaps with younger peers; non-remotable occupations showed little age-related difference. The study, led by Natalia Emanuel of the New York Fed, attributes the trend to firms’ hesitancy to hire fresh graduates into distributed teams, where training and mentorship are harder. It also notes the rise predates broad AI adoption and finds AI exposure had limited impact on youth unemployment, underscoring training and onboarding as the central issue for young job seekers.