The growing use of AI in the job market is worsening graduate unemployment and accelerating concerns that the traditional college model is losing its economic value.
Colleges and universities in the United States are facing renewed scrutiny as artificial intelligence reshapes entry-level employment, raising questions about the value of higher education. University enrollment fell nearly 15 percent between 2010 and 2022, while rising tuition and funding cuts have intensified concerns over return on investment for students.
Recent graduates are now encountering weak job prospects as AI reduces hiring and internships. According to the Federal Reserve Bank of New York, unemployment among recent college graduates stands at 5.8 percent. Author Ryan Craig warned that “colleges and universities face an existential issue before them.”