Who should new grads boo more? AI or remote work?

The U.S. labor market demonstrated continued resilience in May, adding 172,000 jobs while maintaining a steady 4.3% unemployment rate. Growth was primarily driven by the leisure, hospitality, local government, and healthcare sectors, though average hourly wage increases of 3.4% still trail the current 3.8% inflation rate. While public perception often blames artificial intelligence for the hiring struggles of young graduates, recent economic research suggests remote work is the primary culprit; employers are increasingly hesitant to hire junior workers due to the difficulties of virtual onboarding and training. Additionally, the unemployment rate for Black workers, which fell to 6.6% in May, serves as a critical leading indicator for the broader economy. Historical data suggests that a one percentage point rise in Black unemployment typically precedes a 0.2 percentage point increase in the national rate within four to seven months, making this demographic a vital signal for overall labor market health.