Gen Z Job Crisis: Maybe there are many university graduates now

This means that the workforce’s share with a Bachelor’s degree is greater than it was in previous generations, which creates a new dynamic for General Zires who have just finished from the university and look forward to launching their career.

On Thursday note, Ed Yardini, the president and the largest investment strategies in Yardeni Research, examined the unemployment between graduates of modern universities and the potential factors that contribute to this.

He pointed out that the graduates from the age of 22 to 27 have a historical rate of unemployed less than the total workforce. But that began to change around 2015 – before the appearance of Chatbot from Openai in late 2022 and the rush to the bewitous artificial intelligence that followed.

In reality, Data collected by the Federal Reserve in New York It shows that the unemployment rate for new graduates is less than the total rate in December 2014, when it was 5.6 % compared to 5.5 %. The years after those concerned, back and forth, witnessed trading places.

But during the epidemic, unemployment among modern universities graduates began to overcome the total rate continuously. In early 2022, the separation of two directions began to expand.

In contrast, the unemployment rate for all university graduates in each age group has been much lower than the total rate for at least 35 years.

According to the latest data, the unemployment rate for the new graduates was 4.8 % in June, while it was 4.0 % for all workers.

“Why is this change? This may be due to the college increased educated in the workforce in general these days, and therefore the new arrivals compete for jobs with more experienced university graduates,” Yardini wrote.

Quoting from Education Data InitiativeHe added that the percentage of Americans with a Bachelor’s degree or above now 37.5 %, up from 25.6 % in 2000. Between 1993 and 2023, the number of university graduates increased by 74.9 %, while the number of diploma in high school increased 14 %.

At the same time, a Separate Federal Reserve analysis in New York This shows unemployment rates by the main college that the graduates with certificates in computer engineering, computer science, physics, systems, information and management have higher emotional rates than workers in general.

“This indicates that many children chose to go to computer fields and faced more difficult time than expected to get a good job,” said Yardini.

Certainly, the evidence is escalating that artificial intelligence shrinks opportunities, especially in Entry level. The most prominent Yardeni recently reconnaissance By the Cengage Group, which has shown artificial intelligence among the most important reasons that make more employers plan to employ the same workers or less than last year.

But he was also killed 2023 paper Through the National Office for Economic Research, which found that artificial intelligence has already led to companies that have more minimum employees who are able to use technology, which allowed them to make decisions without management and establish a flattering organization.

And do not forget the tariff for President Donald Trump, which led to some inflation and enhanced uncertainty about the economy, making it difficult for companies to plan for the future and develop the number of employees.

Others in Wall Street are also Skeptical about the role of artificial intelligence in the work crisis, General Z. The UBS Senior Economists described Paul Donovan the US labor market as strange, noting that young workers in the eurozone have recorded low unemployment, their average in the United Kingdom has decreased steadily, and that their labor participation in Japan is near its highest levels ever.

He wrote in a memorandum on Friday: “It seems very unreasonable for Amnesty International uniquely hurt the employment prospects for younger American workers,” he wrote in a memorandum on Friday.

But after years of telling them that the college was a necessity to get a good job, the pendulum may swing in the other direction. Commercial jobs have become more popular, especially between General Zires who enjoy the idea of ​​not commenting in front of the computer and seeing a future not vulnerable to AI.

At the same time, the Gen Z’s work crisis collides with the student debt crisis, making young people more frequent in borrowing huge amounts of money to obtain a questionable certificate.

It is not surprising that Americans have a faded view of college now. According to Gallup survey earlier this monthOnly 35 % say that going to college is “very important” – which is a low standard – a decrease from 51 % in 2019 and 75 % in 2010.

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