Federal Reserve Chairman Jerome Powell has already known what many new graduates know – getting a job outside the college is very difficult at the present time. Speaking at his regular press conference after the Federal Open Market Committee, Powell called “an interesting labor market”. He said that people “children leaving the college, youth, and minorities, are difficult to find jobs.” In general, the “job finding rate” is very low, as Powell said, but again, the rate of workers’ demobilization. “So you have a low employment environment.”
Modern work reports indicate that in reality, it is difficult there. The black unemployment rate rose above 7 % in August, while The rate of new graduates It rose above the total rate for the first time in modern history. Global Administration Apollo The chief economist Toristin Silok, famous in Wall Street for being the first to notice data wrinkles, I noticed that she was already falling For new graduates who are female and new graduates who are men. In general, I noticed Slok also shortly before the FOC meeting by America More people unemployed from job opportunities: 7.4 million to 7.2 million.
The past few months of 2025, called “Summer shift from ugly artificial intelligence“By German bankIt was full of anecdotal evidence that Development of artificial intelligence does not go smoothly At the level of the company, on the one hand, that is Destruction of employment for beginnersOn the other hand.
Powell himself has previously discouraged a discussion in Amnesty International, which witnessed 50 % of the jobs of white collars and a fourth industrial revolution that creates a reward from new positions, by leaving the middle position. “Certainly, there is a possibility, at least in the beginning, AI will replace many jobs, instead of just increasing people’s work,” Tell Powell the Senate Banking Committee In late June. “In the long run, artificial intelligence may raise productive and lead to increased employment. But it is a transformative technique, with unknown effects.”
On Wednesday, Powell refused to be attracted to this specifically, saying “There is a great uncertainty” about the issue of the impact of artificial intelligence on the labor market. “I think, my view, which is also a guess, but widely, on a large scale, is that you see some effects, but it is not the main thing, and not the main thing that leads it.” However, with regard to young people coming out of the college, he said, “There may be something there. Other companies or institutions that were employing young people outside the college may be able to use artificial intelligence more than they were in the past. This may be part of the story.”
Powell sought to focus the minds of journalists, saying that the economy may simply slow down and that creating job opportunities has slowed on a large scale. He added that artificial intelligence is “perhaps a factor.” “It is difficult to say how big is.”
Long -term consequences
The minority of the future Gen Z and Poickers in the future can hesitate, with repercussions not only for individual families but for the wider American economy. Research indicates that entering the labor market during the economic recession can reduce lifelong profits, delaying home ownership, and wealth defects, especially for those who already face regular barriers.
Academics are studying “the effects of scar” or “slowdown” in the labor market, which is caused by the economic contraction for decades. Professor Harvard David Ilwood Give “Permanent scars” In 1982, Olivier Blancard and Larry Samarz presented the research in a The 1986 PaperOn the pretext that unemployment, especially after the recession, can have a significant impact on the profession of someone for many years to come. Adam Bosen, head of the Peterson Institute for International Economy, Tell the Bloomberg Podcast In August, the economy seemed difficult to slow since the great recession in 2008 but did not find it.
David Blanchevilor of Dartmouth College and Alex Braison of the University of London College found something curious: Young wages and unemployment have not suffered significantly since 2010, but they see an unambiguous increase in “despair” among young workers, which extend over the past decade. Blashflower said luck Earlier this month, it is believed to be summarized in a position on “this job absorbs”. Now to that picture, you can add something unambiguous: unemployment is going in the wrong direction.
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