‘Kids coming out of college…are having a hard time finding jobs’

Federal Reserve President Jerome Powell gave an alarm about what new graduates already know – it is really hard to get a job from the university. Speaking at a regular press conference after the Federal Open Market Committee meeting, Powell said, “An interesting labor market,” he said. People said, “Children and young people from the university, minorities, find it difficult to find a job,” he said. In general, the “job finding rate” is very low, Powell Powell said, but so is the dismissal rate. “So you have low ignition, low recruitment environment.”

The latest workers’ reports show that it is really difficult. The black unemployment rate increased to more than 7% in August Rate for new graduates For the first time in the recent history, it has been above the general rate. APOLLO GLOBAL MANAGEMENT Chief Economist Torsten Slok is famous for noticing a wrinkle in data in Wall Street, He stated that he actually fell For new graduates who are male and for new graduates with rising. More generally, Slok noted shortly before the US FOMC meeting. More unemployed people than business opening: 7.4 million to 7.2 million.

In the last few months of 2025,Summer AI is ugly” with Deutsche BankIt was full of anecdote evidence AI does not go smoothly At the institutional level, on the one hand and Destruction of the entry level recruitmentOn the other hand.

Powell had previously focused on the AI ​​business discussions, which created a reward of new positions by making a new position in the middle position, 50% of the white -collar jobs and a fourth industrial revolution. “At least in the beginning, AI is likely to replace many things instead of increasing people’s labor,” Powell told the Senate Banking Committee At the end of June. “In the long run, AI can increase productivity and lead to more employment. However, this is a transformational technology with unknown effects.”

On Wednesday, Powell refused to withdraw on this issue by saying “there is a great uncertainty around” around AI’s impact on the labor market. “I think, at the same time a little guess, but it is widespread, I think you see some effects, but this is not the main thing, it is not the main thing that directs it.” Nevertheless, there may be something there. Companies or other institutions that hire young people than university can use more than in the past. This may be part of the story. ” He said.

Powell tried to focus on the minds of journalists, saying that the economy was slowing down and creating employment has slowed down with it. AI, “probably a factor,” he added. “It’s hard to say how big it is.”

Long -term results

The situation of those who are and minority job seekers can echo well in the future with results not only for individual household peoples, but for a wider US economy. Research shows that entering the labor market during an economic collapse can reduce lifetime earnings, delay the hosting and prevent the reserve building.

Academicians examine the “wound track effects” or the workforce market “hysterisis olan, which have been caused by economic decline for decades. Harvard professor David Ellwood Introduced his language “Permanent scars” In 1982 and Olivier Blanchard and Larry Summers 1986 newspaperEspecially after a stagnation, unemployment may have a great impact on someone’s career for many years. Adam Posen, President of Peterson International Institute of Economics, He told Bloomberg’s Odd Lots Podcast In August, this economy has been harsh for hysterisis since the great stagnation of 2008, but could not find it.

David Blanchflower of Dartmouth College and Alex Bryson of the College of London found something curious: Youth wages and unemployment has not suffered significantly since the 2010s, but they see a significant increase in the last decade among young workers. Blanchflower told Luck At the beginning of this month, he thought that this could be summarized with a “this work terrible” attitude. Now you add something clear to this picture: unemployment is going in the wrong direction.

This story took place at the beginning Fortune.com