AI's Impact on Job Market: 5.7% Unemployment for Recent Graduates

Artificial intelligence (AI) is changing the hiring landscape for recent graduates. As of June 2026, the unemployment rate for college graduates aged 22 to 27 stands at 5.7%, above the national average, marking a one percentage point increase from two years ago. Additionally, 42% of college graduates are underemployed, working in positions not requiring a bachelor's degree. The Federal Reserve Bank of New York reports that 66% of recruiters plan to enhance AI usage for pre-screening interviews in 2026. This shift towards AI in hiring processes will require students to adapt their job search strategies effectively.

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