AI robs jobs from recent college grads, no wage compression

"Researchers with the Stanford Digital Economy Lab say that workers between the ages of 22 and 25 in occupations most exposed to AI, like software developers, have seen a 13 percent relative decline in employment compared to other occupations. This omes as employment for more experienced workers in the same jobs, and workers of all ages in occupations less exposed to AI, has been stable or growing."

"Data released in February 2025, by the Federal Reserve Bank of New York, for example, found that the unemployment rate for recent college graduates was 5.8 percent compared to 4.0 percent for workers on average. And among those who studied computer science, the US unemployment rate was 6.1 percent, spiking to 7.5 percent for computer engineering. A report from SignaFire in May found that the hiring of new graduates dropped to 50 percent of pre-pandemic levels. The report attributed the shift in part to AI, describing the situation as a hiring reset where firms want more experienced workers and fewer entry-level hires."

""Previously, a Berkeley CS graduate, even if not a top student, would receive multiple appealing job offers in terms of work type, location, salary, and employer," he wrote. "However, outstanding students, like those with a 4.0 in-major GPA, are now contacting me worried because they have zero offers. I suspect this trend is irreversible and likely part of the broader trend imp"

Workers ages 22–25 in occupations most exposed to AI, such as software developers, experienced a 13 percent relative decline in employment compared to other occupations. Employment for more experienced workers in the same roles and for workers across ages in less AI-exposed occupations has been stable or growing. Federal Reserve Bank of New York data from February 2025 shows unemployment for recent college graduates at 5.8 percent versus 4.0 percent overall; computer science graduates 6.1 percent and computer engineering 7.5 percent. A SignaFire report found new-graduate hiring at 50 percent of pre-pandemic levels and attributed part of the shift to AI as firms prefer experienced hires. Reports and practitioner accounts note top graduates receiving few or no offers and some tech roles moving overseas.

Read at Theregister