Remote work drives surge in unemployment for young grads

A significant rise in unemployment among young college graduates is more closely linked to the expansion of remote work than to the proliferation of artificial intelligence, according to a new study from the Federal Reserve Bank of New York. The research, published Monday, estimates that remote work can explain nearly two-thirds of the increase in joblessness for graduates under age 29 since before the pandemic.

The unemployment rate for this group averaged 3.1 percent from 2017 to 2019 but rose to an average of 3.7 percent from 2022 to 2025. During the same period, the jobless rate for more experienced college graduates aged 29 and over declined slightly. Researchers found this disparity is concentrated in occupations where tasks can be performed remotely, such as software development and engineering.

In these "remotable" jobs, the unemployment rate for young graduates increased by approximately one percentage point between the pre-pandemic and post-pandemic periods analyzed. Conversely, the rate for older workers in the same fields declined, widening the gap. In "non-remotable" occupations, like nursing or mechanical engineering, the unemployment gap between younger and older...