Recent college graduates are struggling to find jobs due to significant policy uncertainty and a sluggish economy rather than the impact of artificial intelligence and automation. Economist Brad DeLong highlights the effect of this uncertainty on business planning, leading to hiring freezes. This environment particularly harms new entrants to the job market who depend on entry-level opportunities. Gary Cohn has identified critical economic warning signs that contribute to this trend, including a notable decrease in the quits rate, indicating poor economic conditions.
DeLong emphasized that policy uncertainty has paralyzed business planning, causing a self-reinforcing cycle of hiring freezes that negatively impacts new job entrants.
The uncertainty surrounding trade, immigration, and technology leads to hiring delays, particularly detrimental for recent graduates seeking entry-level positions.
Graduates of 2025 are particularly unlucky, facing significant barriers to employment due to firms' risk aversion and a lack of available entry-level jobs.
Cohn pointed to the declines in the quits rate as a concerning indicator of economic health, reflecting broader challenges in the job market.
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