Remote Jobs Linked to Wider Unemployment Gap for Young Workers: New York Fed

Economists say youth unemployment rose before the AI surge and persists even after controlling for AI exposure.

An employee sets up a laptop for a job application page during a hiring fair for postal workers and mail carrier assistants at a U.S. Postal Service facility in Inglewood, Calif., on July 18, 2022. Patrick T. Fallon/AFP via Getty Images

There has been a rise of both remote work and youth unemployment since the COVID-19 pandemic—and new research suggests that the two trends are connected, according to the Federal Reserve Bank of New York.

In an analysis published on June 1, New York Fed economists found that the unemployment rate for college graduates younger than 29 increased to 3.7 percent in 2022–2024 from 3.1 percent in 2017–2019. Over the same period, unemployment among more experienced college graduates aged 29 and older edged down to 1.8 percent from 1.9 percent.