Skip to main content

Top Economists Agree That Gen Z's Hiring Nightmare Is Real

1 month 2 weeks ago
An anonymous reader quotes a report from Fortune: The dramatic rise in unemployment among Americans under 25 -- especially recent graduates -- has become one of the most troubling economic headlines of 2025. Recent insights from economists, central bankers, and labor market analysts signal that this appears to be a uniquely American challenge, underpinned by a "no hire, no fire" economy rather than solely by the rapid ascent of artificial intelligence. For many Gen Z workers, the struggle to land a job can feel isolating and fuel self-doubt. But that frustration recently got some high-level validation: Federal Reserve Chair Jerome Powell echoed economists' concerns about the cooling labor market, telling reporters at his regular press conference following the Federal Open Market Committee that it's an "interesting labor market" right now, adding that "kids coming out of college and younger people, minorities, are having a hard time finding jobs." Noting a low job finding rate, along with a low redundancy rate, he said, "you've got a low firing, low hiring environment." and noting that it's harder than ever for young jobseekers to break in. While recent months have been dubbed by Deutsche Bank "the summer AI turned ugly," and some major studies find AI adoption disrupting some entry-level roles, Powell was less sure. AI "may be part of the story," but he insisted the main drivers are a broadly slowed economy and hiring restraint. Top economists at Goldman Sachs and UBS tackled the subject soon after and found Powell to be mostly on the money. This isn't an AI story, at least not yet. "The U.S. labor market experience is peculiar," said Paul Donovan, UBS Chief Economist. "Young Euro area workers have a record low unemployment rate. In the UK, the young persons' unemployment rate has fallen steadily. Employment participation by young Japanese workers is near all-time highs. It seems highly implausible that AI uniquely hurts the employment prospects of younger US workers." "It might be tempting to blame technology... Machines, robots, or computers replacing humans is an ever-popular dystopian scenario." Donovan concludes that the U.S. pattern "more convincingly fits a broader hiring freeze narrative, affecting new entrants to the workforce." Goldman Sachs economist Pierfrancesco Mei said last Thursday that "finding a job takes longer in a low-turnover labor market." He argued that "job reallocation," or the pace at which new jobs are created and existing ones destroyed, has been on the decline since the late 1990s... "almost all the variation in turnover since the Great Recession mostly falls on younger workers" and is taking place as "churn." Goldman found that in 2019, it took a young unemployed worker about 10 weeks to find a new job in a low-churn state; now that's 12 weeks on average.

Read more of this story at Slashdot.

BeauHD

Nvidia adds more air to the AI bubble with vague $100B OpenAI deal

1 month 2 weeks ago
Promises, promises

analysis  OpenAI and Nvidia have signed a letter of intent wherein OpenAI agrees to buy at least 10 gigawatts of Nvidia systems for its datacenters, while the AI arms dealer returns the favor with an investment of up to $100 billion in the house that Altman built.…

Iain Thomson and Matt Rosoff

LinkedIn Set To Start To Train Its AI on Member Profiles

1 month 2 weeks ago
LinkedIn has said it will start using some member profiles, posts, resumes and public activity to train its AI models from November 3, 2025. From a report: Users are rightly frustrated with the change, with the biggest concern isn't the business networking platform will do so, but that it's set to be enabled by default, with users instead having to actively opt out. Users can choose to opt out via the 'data for generative AI improvement' setting, however it will only apply to data collected after they opt out, with data up until that point still retained within the training environment.

Read more of this story at Slashdot.

msmash

Meta's AI System Llama Approved For Use By US Government Agencies

1 month 2 weeks ago
The U.S. General Services Administration has approved Meta's AI system Llama for use by federal agencies, declaring that it meets government security and legal standards. Reuters reports: "It's not about currying favor," [said Josh Gruenbaum, the GSA's procurement lead, when asked whether tech executives are giving the government discounts to get President Donald Trump's approval]. "It's about that recognition of how do we all lock in arms and make this country the best country it could possibly be." Federal agencies will be able to deploy the tool to speed up contract review or more quickly solve information technology hiccups, among other tasks, he said.

Read more of this story at Slashdot.

BeauHD

Don't panic: H-1B visas will cost companies $100K only for new petitions

1 month 2 weeks ago
However, the changes could lead to more offshoring

In a surprise announcement on Friday, President Trump issued a proclamation on the H-1B visas many tech companies use to import qualified foreign workers. The headlines mentioning a $100,000 fee caused panic among many visa holders, leading the White House to issue a clarification: Only new applicants will cost their companies this exorbitant price.…

Iain Thomson