CS grads face higher unemployment as AI reshapes hiring

A New York Fed study shows rising unemployment for new CS grads amid AI driven hiring and large tech layoffs.

The computer science dream has become a nightmare

A New York Federal Reserve Bank study finds unemployment among fresh computer science graduates ranges from 6.1 to 7.5 percent, higher than many other majors. The finding undercuts the belief that coding automatically leads to prosperity and adds a layer of nuance to the tech career story. The New York Times piece behind the coverage shares personal examples such as Manasi Mishra, 21, who after Purdue University had only one interview and did not land a job, and Zach Taylor from Oregon State who has applied to thousands of tech roles since 2023 but has not received a single offer.

Analysts point to a tightening junior market as AI tools speed up screening and big employers trim staff. Students describe an AI driven doom loop where applications are mass submitted with the help of AI and recruiters respond with automated rejections within minutes. Mishra eventually finds a job, though not in software engineering, illustrating that success can still occur but through less conventional paths.

This moment reflects a broader shift in the tech economy. Demand for skilled workers persists, but the route into entry level roles is narrowing as automation accelerates hiring and reduce junior positions. Colleges and career services may need to broaden CS training to connect with practical outcomes in different tech fields and in related non technical roles.

Policy makers and schools should invest in reskilling and apprenticeships while employers rethink how they evaluate graduates beyond speed and AI screening. The risk is not merely financial for graduates but social as well if a generation feels it has bought into a promise that proves elusive. The lesson is clear education and industry must adapt together.

Highlights

The coming months will test whether education can keep pace with a fast changing tech economy.