IOWA CITY, Iowa (KCRG) – More college graduates are struggling to land their first jobs, and one of the reasons is artificial intelligence.
According to a recent New York Federal Reserve report, unemployment data show that graduates between the ages of 22 and 27 had an unemployment rate of around 5%. That’s higher than the national average of all employed people.
Dana Powers often uses AI in her role at the University of Iowa. It’s a job she started less than a year ago.
“I use it typically on an every-other-day basis,” said Powers.
While she’s using it in her everyday work, it’s also something she was thinking about when she entered the job market last year.
“One of my big concerns was how fast we are able to move now with the world of AI being so popular,” she said. “So, when I was putting in my application, I was worried about is someone getting an application in sooner than I am while leveraging AI.”
Powers is in that demographic of Americans who are struggling to land jobs. Director of Career Services at the Tippie College of Business, Cindy Meis said one of the factors is employees reacting to AI.
“They’re slowing hiring down,” she said. “They are being cautious in the roles that they are hiring. They might invest more in a seasoned professional who has some more experience than an entry-level because they don’t know yet.”
Meis believes AI could slow hiring for recent college graduates for the next five years. And that an enrollment cliff is coming. With a lower birth rate, there won’t be as many people going into college. This will help people find work after getting their degrees.
“In about four to five years, we are going to see fewer students graduating, which will then impact the number of candidates available to fill these pipelines for hiring,” said Meis.
How AI is changing the workplace is not yet fully known. Powers said it’s something newly graduated students need to be aware of.
“I think it’s important to understand how to use it,” Powers said. “I think it is something that can be leveraged in the workplace to the best of their ability while staying ethical.”
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