Jerome Powell, chairman of the Federal Reserve, has been playing the alarm, which many recent graduates already know – it is really difficult to get a job from university at this time. Speaking at his regular press conference after the Federal Open Market Committee meeting, Powell called it “an interesting labor market”. He said people “children get out of college and younger people, minorities, hard to find a job.” In general, Powell said the “job determination percentage” is very low, but again, and thus the percentage of forgiveness. “So you have a low shooting, low rental environment.”
The latest job reports show that it is really difficult. Black unemployment rate in August. Increased by greater than 7%, and the percentage of recent graduates increased for the first time in the last history above the general level. The Apollo Global Management chief economist Torsten Slok, famous for its first time noticed data wrinkles, noted that recently recent graduates of recent time, which are female and are due to the latter graduates who are men. In general, Slokas also noted shortly before the FOMC meeting that America has more unemployed than jobs, from 7.4 to 7.2 million.
Last 2025 The months called “Deutsche Bank”, “The Summer Ai became ugly”, was full of anecdotal evidence that Ac is not smooth on the one hand, and that it destroys an initial level of lease.
Powell himself has previously considered discussions on AI’s jobs, which predicted 50% of the white collar workplaces and the fourth industrial revolution that creates the blessing of new positions, forming a middle position. “Of course, there is a possibility that at least at the beginning, a lot of work will be changed, not just to increase people’s work,” Powell told the Senate Banking Committee at the end of June. “In the long run, AI can increase productivity and lead to higher employment. However, it is a transformative technology that is unknown.”
On Wednesday, Powell refused to be drawn to it specifically, saying, “There is a great uncertainty” due to AI impact on the labor market. “I think my attitude, which is also a little guessing, but I think it is widely shared that you see a certain effect, but that’s not the main thing, not the main thing.” However, when it comes to young people leaving the college, he said, “There may be something. It may be that companies or other institutions that hire younger people directly from college may use AI that more than before. It can be part of history.”
Powell tried to focus on the minds of journalists, saying that the economy simply slowed down and that job creation was fundamentally slowed down. PG is “probably a factor,” he added. – It’s hard to say how big it is.
Long -term consequences
The situation of Gen Z and minorities could be well distanced from the future, as the consequences are not only for individual households, but also to a wider US economy. Studies show that entering the labor market during an economic downturn can reduce income from life, postpone home property and interfere with property creation, especially those who are already facing systemic obstacles.
Academics have studied the effects of “scars” or the “hysteresis” of the labor market due to decades of economic downturn. Harvard Professor David Ellwood 1982 Presented the language of “permanent scars”, while Olivier Blanchard and Larry Summers improved research into innovative 1986. Paper, stating that unemployment, especially after a decline, can have a major influence on someone’s career for many years. Adam Poseen, President of the Peterson Institute of International Economics, in August. Bloomberg’s Odd Lots Podcast said that since 2008 The economy of the great downturn looked hard for hysteresis, but did not find it.
David Blanchflower from Dartmouth College and London University College Alex Bryson found something interesting: youth wages and unemployment have been severely affected, but they have seen the undoubted increase in young employees in the last decade. Blanchflower said Fate Earlier this month, he thinks it can be summarized in the light of “this work sucks”. Now you add something undoubted to this photo: unemployment goes in the wrong direction.
This story was initially displayed by fortuna.com