The rise of remote work may be contributing significantly to higher unemployment among young college graduates, according to new research from the Federal Reserve Bank of New York.
The report found that unemployment among recent college graduates increased from 3.6% in March 2019 to 5.6% in March 2026. New York Fed economists estimated that remote work could explain roughly 64% of that increase.
According to the researchers, employers may be less willing to hire inexperienced workers into distributed teams because training, mentorship and skill development are more difficult when employees work remotely.
Remote work is worsening youth unemployment, New York Fed finds https://t.co/Ixd5j6GkxA
— CNBC (@CNBC) June 1, 2026
The study suggested that remote work may currently have a greater impact on entry-level employment than concerns surrounding artificial intelligence.
The report compared hiring patterns across occupations that can be performed remotely and those that require in-person work. Researchers also examined data from a Fortune 500 company that reportedly reduced hiring of inexperienced workers during the pandemic because of challenges associated with remote training.
The report warned that weaker early-career opportunities could have long-term consequences for young graduates entering the workforce.
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TIPP Staff
