Remote Work Linked to Sharp Rise in Graduate Joblessness

(MENAFN) A growing share of the recent increase in unemployment among young college graduates is tied to the expansion of remote work, according to a study released Monday by the Federal Reserve Bank of New York.

Researchers found that remote work accounts for 64% of the latest rise in unemployment among recent graduates. Their analysis also suggests that the trend emerged before generative artificial intelligence became a widespread workplace factor, indicating that remote work—not AI—is responsible for most of the increase.

The study showed that the average unemployment rate for college graduates younger than 29 climbed to 3.7% during the 2022-25 period, up from 3.1% recorded between 2017 and 2019. That represents a 20% increase over the earlier period.

According to the report, the deterioration in employment prospects was concentrated in occupations that can be performed remotely. In those roles, the unemployment rate for young graduates rose by nearly one percentage point between the 2017-19 and 2022-24 periods.

The researchers pointed to reduced workplace interaction as a key factor behind the trend. Employees working alongside colleagues typically receive more frequent feedback and guidance, while those operating in remote settings often experience significantly less mentorship and performance-related input.

Further evidence came from a proprietary dataset covering a Fortune 500 company. The study found that the firm scaled back hiring of less-experienced workers after offices closed during the pandemic. Hiring of younger employees increased again once in-person operations resumed, reinforcing the link between workplace presence and opportunities for early-career workers.

MENAFN02062026000045017169ID1111197346