Why has youth unemployment risen so dramatically? It may not be AI.

https://www.highereddive.com/news/youth-unemployment-rise-ai-remote-work/821917/

Publish Date: 2026-06-08 05:12:00

Source Domain: www.highereddive.com

Rise in Remote Work: The Federal Reserve Bank of New York analysis found that remote work may account for up to 64% of the recent unemployment increase among recent college graduates.
Job Type Disparities: Younger workers experienced a one percentage point rise in unemployment in remotable (remote-friendly) jobs, while older workers’ unemployment slightly declined in these same roles.
Training and Mentorship Impact: Increased remote work has negatively impacted younger workers by making it harder to receive adequate training and mentorship, according to researchers Natalia Emanuel, Emma Harrington, and Amanda Pallais.
Historical Context: The rise in youth unemployment predates the widespread adoption of artificial intelligence (AI), and the difference in unemployment rates between younger and older workers persists even when AI exposure is factored out.
Empirical Example: An example from a Fortune 500 firm showed a preference for hiring experienced workers during remote work, due to challenges in training and development. Upon returning to the office, the firm began hiring younger workers more frequently.
Continued Remote Hiring Bias: Even after reopening, the firm continued to favor hiring experienced workers for its distributed teams, indicating a reluctance to invest in training for inexperienced remote employees.
Generational Work Preferences: According to a Flexa report, younger generations such as Generation Z express a preference for in-office work when the option is available, indicating a potential resistance among them to remote-first roles.