1 in 4 college grads could soon be unemployed, senator warns
Senator Mark Warner has predicted that 25 percent of college graduates could soon be unemployed due to the impacts of AI on the labor market.
"The concern is that, we know AI is going to transform the economy. It’s going to eliminate a lot of jobs. It’s also going to create some jobs downstream," the Virginia Democrat told CNBC on Thursday.
"What I’m particularly concerned about is not so much the elimination, but the fact that entry level jobs may very quickly disappear. We're already at 9 percent recent college graduate unemployment. I think that number will go to 25 percent very shortly."
Why It Matters
Rising unemployment rates among college graduates has sparked growing concerns about how AI could reshape the U.S. job market.
Warner, like other lawmakers and experts, acknowledged that AI may create new opportunities in the future, but that it could also displace workers in the interim, particularly recent graduates seeking entry-level jobs.
What To Know
The latest jobs report from the Bureau of Labor Statistics showed that the U.S. economy added 119,000 jobs in September, but that the overall unemployment rate had increased to 4.4 percent from 4.3 percent.
The anticipated report was published after weeks of delay due to the federal government shutdown.
The unemployment rate of college graduates between the ages of 20 and 24 reached 9.3 percent in August, the highest rate since the COVID-19 pandemic, according to separate data from the BLS’ Current Population Survey.
Warner told CNBC that while AI may eventually create more jobs, it could be five years or so before these materialize.
He urged AI companies to help fund and design retraining programs in the interim.
"Let's go to the AI community and say, work with us. And frankly, let's put in place this retraining program so that as AI jobs come about, we don't have this level of, particularly coming out of college, job loss," Warner said.
Warner is working with Republican Senator Josh Hawley to introduce legislation that would require major companies and federal agencies to report AI related layoffs to the Department of Labor.
What People Are Saying
Senator Mark Warner told CNBC: "I already know all the big banks are cutting their internship programs. They're hiring in half. They intend to cut again next year. And my feeling is if we eliminate that front end of the pipeline, how are people ever going to get to that mid-career spot?
Senator Josh Hawley said in a press release about the bipartisan legislation: "Artificial intelligence is already replacing American workers, and experts project AI could drive unemployment up to 10-20% in the next five years," adding: "The American people need to have an accurate understanding of how AI is affecting our workforce, so we can ensure that AI works for the people, not the other way around."
What Happens Next
As AI continues to disrupt the jobs market, some lawmakers are pushing for more transparent reporting on AI-driven job losses and retraining programs.