DeLong warns against blaming AI for job struggles

Economist Brad DeLong highlights economic factors over AI in the job market.

Brad DeLong criticizes blame on AI for job market struggles

Recent college graduates are facing severe job market challenges, according to economist Brad DeLong. In a recent essay, he argues that the struggles are rooted in a weak economy and policy uncertainty rather than artificial intelligence. DeLong emphasized that widespread caution among companies leads to a significant slowdown in hiring, impacting entry-level positions. This trend is evident as even high-profile executives like Gary Cohn acknowledge troubling indicators in the economy. Despite low overall unemployment figures, new graduates find themselves in a precarious situation, with a growing gap in job prospects compared to previous generations. As businesses delay hiring decisions amid fears of changing regulations and economic shifts, DeLong's insights underscore a shift in the job market where traditional securities associated with a college degree are diminishing.

DeLong's perspective offers an essential counterpoint to the often-lamented narrative that attributes job market difficulties solely to advancements in technology. Instead, he identifies deeper, systemic issues such as policy uncertainty and a cautious business climate. This risks perpetuating a cycle of stagnation for new graduates, for whom opportunities are already diminishing. Companies are now more inclined to invest in infrastructure rather than nurturing young talent. As DeLong notes, the rising importance of entry-level jobs may falter under the weight of economic insecurity, shifting the expectations for future graduates and the workforce as a whole. The decline of the college wage premium only adds to these complexities.

Highlights

Understanding these dynamics could reshape how universities prepare students for the workforce.