Fed Study Links Remote Work to Rise in Youth Unemployment

(MENAFN) A new study released Monday suggests that the expansion of remote work has played a major role in the recent increase in unemployment among young university graduates, as employers face difficulties training and guiding less-experienced workers outside traditional office settings.

According to the research, remote work accounts for 64% of the recent rise in unemployment among college graduates entering the workforce. The findings also indicate that the timing of the increase aligns more closely with changes in workplace arrangements than with the growing adoption of generative artificial intelligence.

The study found that the unemployment rate among college graduates under the age of 29 climbed from an average of 3.1% during the 2017-2019 period to 3.7% between 2022 and 2025, representing a 20% increase.

Researchers concluded that most of the overall rise occurred in occupations that can be performed remotely. In those fields, unemployment among young graduates increased by nearly one percentage point between the 2017-2019 and 2022-2024 periods.

The report also emphasized the importance of in-person workplace interaction, noting that employees working alongside colleagues typically receive more direct guidance, feedback and mentorship, while those working remotely often experience a significant reduction in those opportunities.

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