Remote work — not AI — could be the main factor behind rising unemployment among young college graduates, according to a June 1 analysis from the Federal Reserve Bank of New York.
Unemployment among college graduates younger than 29 averaged 3.1% from 2017 to 2019, then climbed 20% to 3.7% from 2022 to 2025. The analysis’ authors — a research economist and two economics professors — estimate remote work accounts for 64% of that recent increase.
They tie the rise to the four-fold jump in remote work since the pandemic, which makes it harder for leaders to train and mentor new team members. Organizations may also be reluctant to hire less-experienced employees into remote roles. Comparing unemployment rates in “remotable” jobs with those in “non-remotable” ones, the authors found that the overall increase among young college graduates traces back to remotable occupations.
While some analysts have pointed to AI as a driver of young graduates’ job market struggles, the rising unemployment predates AI’s widespread adoption, according to the analysis. Still, AI was linked to 40% of U.S. job cuts across industries and age groups in May, according to a separate study.
The Federal Reserve Bank study authors also drew on proprietary data from a Fortune 500 company: Employees who work alongside their colleagues receive more feedback and mentorship, while those separated even by a short distance see that support drop off sharply — an effect that hits younger workers hardest.
Remote and hybrid work remains prevalent at many health systems, especially when it comes to filling key roles.
Nashville, Tenn.-based HCA Healthcare had 17,014 open roles on its website as of June 8, with 150 designated as “work from home.” Chicago-based CommonSpirit had 5,184 open positions, with 111 labeled “remote.” At Oakland, Calif.-based Kaiser Permanente, 2,246 total job openings included 340 listed as “flexible” and 30 as “remote.”
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
