Figures recently released by the Federal Reserve Bank of New York show unemployment, underemployment, and other data for recent college graduates, and it's not pretty. The majors with the highest unemployment rates are, in order: Anthropology (9.4%), Physics (7.8%), then Computer Engineering (7.5%). Computer Science is tied for seventh with Chemistry at 6.1%. Right after those comes Information Systems & Management at 5.6%. Another study by Oxford Economics confirms that new grads in the tech sector are finding it tougher and tougher to find work, attributing those changes to the advent of AI. What is going on here?
AI is able to do more and more entry-level work
AI is constantly improving, and shown itself to be equal to or better than people at many tasks. New applications are being rolled out daily, covering everything from data entry to scheduling to fraud detection. Without a doubt, businesses are leveraging AI to accomplish organizational and research tasks, things that used to given to interns. And this may be shrinking the entry-level job market.
Economic uncertainty is slowing hiring
Between AI, tariffs, immigration issues, and even war, businesses are taking a more cautious approach in hiring. No one knows how to project what will happen in the coming year, so why commit to a permanent employee whom you might not need in a year or two? Companies may pivot to hiring more temporary workers or outsourcing work to consultants, so that they can keep payrolls flexible. STEM majors need to be aware of the realities of the market moving forward.
Be excellent at whatever you do
So what is a college student to do? There are still proportionately a lot of tech jobs out there, but the influx of new computer science majors has flooded the market. Having a degree no longer guarantees you a job, so the only choice is to work hard. And if you find that computers are not for you, don't hesitate to zig where others are zagging. Some of the lowest unemployment rates were reported in nutrition sciences, construction services, animal and plant sciences, and civil engineering. The best way forward is to find what you are good at, and do it the very best you can.