{"id":22926,"date":"2025-11-15T19:20:07","date_gmt":"2025-11-15T19:20:07","guid":{"rendered":"https:\/\/finderica.com\/?p=22926"},"modified":"2025-11-15T19:20:07","modified_gmt":"2025-11-15T19:20:07","slug":"ai-puts-the-squeeze-on-new-grads-looking-for-work","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=22926","title":{"rendered":"AI puts the squeeze on new grads looking for work"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108226107\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108226107\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000395614\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>A college degree is often considered the ticket to a well-paying career, and more than three million new graduates enter the workforce every year banking on that promise.<\/p>\n<p>However, this year, those armed with a newly minted diploma have faced one of the toughest job markets in a decade. And next year could be as bad or worse.<\/p>\n<p>As the artificial intelligence boom reshapes the workforce at an unprecedented pace, some large employers have said they&#8217;re replacing workers with AI in order to streamline operations and cut costs. Concerns about the economy, persistent inflation and a slowdown in consumer spending are also likely contributors to a reduced hiring outlook, other research shows.<\/p>\n<p>Employers are even less optimistic about the overall job market for upcoming graduates than they were in the last several years, according to a <a href=\"https:\/\/www.naceweb.org\/job-market\/trends-and-predictions\/hiring-flat-for-the-college-class-of-2026\" target=\"_blank\" rel=\"noopener\">new report<\/a> by the National Association of Colleges and Employers.\u00a0About half, or 51%, of employers rated the job market for this year&#8217;s college seniors as poor or fair, the highest share since 2020-21.<\/p>\n<p>The integration of AI has &#8220;rendered moot certain types of skills that were once good currency in the labor market, and a number of entry-level jobs are going to continue to be, at the very least, crimped,&#8221; said Joseph Fuller, a professor of management practice at the Harvard Business School.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Read more CNBC personal finance coverage<\/h2>\n<div class=\"group\">\n<ul>\n<li>How baby boomers can close a retirement savings gap<\/li>\n<li>After a layoff, don&#8217;t forget about your 401(k) \u2014 it&#8217;s &#8216;one of your biggest assets,&#8217; CFP says<\/li>\n<li>IRS announces 2026 401(k) contribution limits, raises savings cap<\/li>\n<li>IRS unveils 2026 IRA contribution limits, raises savings cap<\/li>\n<li>IRS announces 401(k) catch-up contributions for 2026, raises cap<\/li>\n<li>IRS unveils Roth IRA income limits for 2026<\/li>\n<li>What the Visa, MasterCard settlement means for your rewards credit card<\/li>\n<li>Where SNAP benefits stand amid negotiations to end the government shutdown<\/li>\n<li>Why the AI stock boom mainly benefits the wealthy<\/li>\n<li>Boomers are less bullish on ETFs than younger generations \u2014 with good reason<\/li>\n<li>Trump floats $2,000 tariff rebate checks: Here&#8217;s what you need to know<\/li>\n<li>This is the &#8216;biggest mistake&#8217; you can make with your IRA, attorney says<\/li>\n<li>Consumers on edge as ACA &#8216;subsidy cliff&#8217; looms: &#8216;Quite frankly, it&#8217;s terrifying&#8217;<\/li>\n<li>How to have tricky money talks as a couple: &#8216;Money Together&#8217; authors<\/li>\n<li>CNBC&#8217;s Financial Advisor 100: Best financial advisors, top firms for 2025 ranked<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>That puts direct pressure on colleges and their career services departments, he said. &#8220;The pathways to get into certain careers are going to be narrower and the burden of credentials will be steeper.&#8221;<\/p>\n<p>Already, postings for entry-level jobs in the U.S. sank 35% since January 2023, according to labor research firm Revelio Labs, with AI playing a big role.<\/p>\n<p>As a result, there are suddenly\u00a0fewer white-collar positions\u00a0for bachelor&#8217;s degree holders just starting out.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline0\"><\/a>A worsening job market for new grads<\/h2>\n<div class=\"group\">\n<p>In total, employers announced 1.1 million cuts so far this year, a 65% jump from a year ago and the highest level since the Covid pandemic year of 2020, according to outplacement firm Challenger, Gray &amp; Christmas. The highest level of layoffs came from the technology sector amid a time of restructuring due to AI integration, the report said.\u00a0<\/p>\n<p>Some industries are more prone to disruptions than others. Jobs in technology and finance, for example, are at greater risk largely due to generative artificial intelligence, which can supplant a human&#8217;s analytical skills, according to a separate\u00a0<a href=\"https:\/\/www.hiringlab.org\/2025\/09\/23\/ai-at-work-report-2025-how-genai-is-rewiring-the-dna-of-jobs\/\" target=\"_blank\" rel=\"noopener\">report<\/a>\u00a0by Indeed. Alternatively, nursing and blue-collar jobs in manufacturing or construction are more insulated, the report found. They simply can&#8217;t be done by AI \u2014 at least not yet.<\/p>\n<p>Recent\u00a0<a href=\"https:\/\/www.philadelphiafed.org\/community-development\/workforce-and-economic-development\/occupational-exposure-to-generative-artificial-intelligence-in-the-third-federal-reserve-district\" target=\"_blank\" rel=\"noopener\">data<\/a>\u00a0from the Federal Reserve Bank of Philadelphia also shows that higher-paying jobs that require a bachelor&#8217;s degree are more likely to be affected by AI.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108146959\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108146959\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000376410\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108146963-17474240436ED3-REQ-EPPERSON-051625.jpg?v=1747424042&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"New college grads face tough job market\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Although the Class of 2025 submitted more job applications than their 2024 counterparts, they received fewer job offers, on average, than the previous class, the <a href=\"https:\/\/www.naceweb.org\/job-market\/trends-and-predictions\/facing-a-tough-job-market-class-of-2025-responded-accordingly\" target=\"_blank\" rel=\"noopener\">National Association of Colleges and Employers<\/a> found.<\/p>\n<p>Just 30% of 2025 college graduates secured a full-time job in their fields. That is down from 41% who secured full-time work in the Class of 2024, according to a separate\u00a0<a href=\"https:\/\/www.cengagegroup.com\/edtech-research\/employability-report\/\" target=\"_blank\" rel=\"noopener\">graduate employability report<\/a> by Cengage Group, an education technology company.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline1\"><\/a>College career offices under pressure<\/h2>\n<div class=\"group\">\n<p>At Gettysburg College in Pennsylvania, some employers who had typically attended the job and internship expo in the past did not participate this year \u2014 though they didn&#8217;t specify why, according to James Duffy, Gettysburg&#8217;s assistant vice president for co-curricular education.<\/p>\n<p>But as companies restructure due to AI, many are cutting back on entry-level jobs that accounted for a significant share of employment opportunities for new grads, Duffy said.<\/p>\n<p>&#8220;If we look at the jobs that AI has absorbed \u2026 there are a number of jobs that students used to move right into. Some of those jobs are no longer available,&#8221; he said.<\/p>\n<p>The proliferation of new technology puts immense pressure on colleges to recalibrate at a time when higher education, as a whole, is already facing a crisis of confidence.<\/p>\n<p>Amid rising college costs and ballooning\u00a0student loan\u00a0balances, more students are questioning the\u00a0return on investment.\u00a0<\/p>\n<p>Among those with student loan debt, 77% call it a &#8220;huge burden,&#8221; and 63% say the education they received hasn&#8217;t been worth the impact student loan debt has had on their overall well-being, according to a newly released study from <a href=\"https:\/\/www.businesswire.com\/news\/home\/20251104672430\/en\/Skills-Crisis-Intensifies-as-AI-Reshapes-Workplace\" target=\"_blank\" rel=\"noopener\">EdAssist by Bright Horizons<\/a>.<\/p>\n<\/div>\n<div class=\"group\">\n<p>The worst-case scenario is taking on debt and graduating without a job, colleges say. \u00a0<\/p>\n<p>Duffy, who oversees Gettysburg&#8217;s center for career engagement, said families of both current and prospective students are more concerned about potential job prospects after graduating than before. &#8220;Parents want to know more data and details about where students are going,&#8221; he said. &#8220;Parents want to know, &#8216;If I&#8217;m going to spend this money, where are they headed after four years?&#8217; We know that is top of mind.&#8221;<\/p>\n<p>To that end, Duffy said giving students as much career-readiness experience as possible is increasingly important, primarily through internships, externships and hands-on work: &#8220;It makes them more marketable, which gives them the agency of choice.&#8221;<\/p>\n<p>Indeed, said Harvard&#8217;s Fuller, &#8220;more schools will need to develop coop-type opportunities.&#8221;<\/p>\n<p>However, in time, such smaller private colleges like Gettysburg may be at a disadvantage compared to urban institutions that are more closely tied to big employers, Fuller added: &#8220;It&#8217;s going to be helpful to be in a school with a fair amount of employment opportunities locally.&#8221;<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline2\"><\/a>&#8216;It&#8217;s not enough for students to graduate with a degree&#8217;<\/h2>\n<div class=\"group\">\n<p>In July, the City University of New York kicked off a <a href=\"https:\/\/www.cuny.edu\/about\/administration\/offices\/ocip\/cuny-beyond\/\" target=\"_blank\" rel=\"noopener\">sweeping effort<\/a> to improve career outcomes for its 180,000 undergraduates by integrating career-connected advising, paid internships, apprenticeships and collaborations with industry specialists across every academic concentration.<\/p>\n<p>&#8220;Success depends on our ability to change and adapt,&#8221; said CUNY&#8217;s chancellor F\u00e9lix Matos Rodr\u00edguez in a statement about the announcement. &#8220;It&#8217;s not enough for students to graduate with a degree &#8230; they must leave with direction, preparation, experience and connections.&#8221;<\/p>\n<\/div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107250029\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Graduates of Baruch College participate in a commencement ceremony at Barclays Center in Brooklyn, New York, June 5, 2017.<\/p>\n<p>Bebeto Matthews | AP<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>CUNY&#8217;s goal is that all future graduates would either be enrolled in a post-graduate program or &#8220;have a job offer in hand in the field that they study,&#8221; Matos Rodr\u00edguez told CNBC. &#8220;If we develop a reputation for being a place where students have opportunities, that goes a long, long way to address some of the concerns about ROI.&#8221;<\/p>\n<p>Still, the challenge remains how to measure post-graduation career success in such a quickly changing labor market, he said.<\/p>\n<p>At the same time, colleges and universities are notoriously slow to adapt, according to Fuller. &#8220;Higher ed is singularly ill-equipped to deal with rapid change,&#8221; he said.<\/p>\n<p>Despite those hurdles, colleges need to &#8220;create structures that allow us to pivot,&#8221; said CUNY&#8217;s Matos Rodr\u00edguez.<\/p>\n<p>That means directing students toward in-demand career paths, particularly as AI creates opportunities in one industry or another, he said: &#8220;It shouldn&#8217;t be like higher ed failed because they weren&#8217;t able to read that crystal ball.&#8221;<strong>\u00a0<\/strong><\/p>\n<p><a href=\"https:\/\/www.youtube.com\/c\/CNBC?sub_confirmation=1\" target=\"_blank\" rel=\"noopener\"><em><strong>Subscribe to CNBC on YouTube.<\/strong><\/em><\/a><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/11\/15\/ai-puts-the-squeeze-on-new-grads-looking-for-work.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A college degree is often considered the ticket to a well-paying career, and more than three million new graduates enter the workforce every year banking on that promise. However, this year, those armed with a newly minted diploma have faced one of the toughest job markets in a decade. And next year could be as<\/p>\n","protected":false},"author":1,"featured_media":15224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[6094,4079,1219,360],"class_list":{"0":"post-22926","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-grads","9":"tag-puts","10":"tag-squeeze","11":"tag-work"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/22926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22926"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/22926\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/15224"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}