I feel sorry for young college graduates. They are suffering the burdens of high college costs (many with debt), high cost of housing, uncertainty in hiring by employers and now AI.
Unemployment among young college graduates outpaces overall US joblessness rate
By CHRISTOPHER RUGABER, Associated Press, Updated 12:02 PM PDT, June 26, 2025
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Higher unemployment for younger graduates has also renewed concerns about the value of a college degree. More workers than ever have a four-year degree, which makes it less of a distinguishing factor in job applications. Murat Tasci, an economist at JPMorgan, calculates that 45% of workers have a four-year degree, up from 26% in 1992…
Job gains in professions with more college grads, such as information technology, legal services, and accounting have languished in the past 12 months…
For college graduates 22 to 27 years old, the unemployment rate was 5.8% in March — the highest, excluding the pandemic, since 2012, and far above the nationwide rate… [end quote]
https://www.wsj.com/tech/ai/ai-white-collar-job-loss-b9856259?mod=hp_lead_pos2
CEOs Start Saying the Quiet Part Out Loud: AI Will Wipe Out Jobs
Ford chief predicts AI will replace ‘literally half of all white-collar workers’
By Chip Cutter and Haley Zimmerman, The Wall Street Journal, July 2, 2025
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Several CEOs predict AI will significantly cut white-collar jobs, marking a shift from previous reluctance to acknowledge potential job losses.
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Ford’s CEO anticipates AI replacing half of white-collar workers, while JPMorgan Chase expects a 10% operations head count reduction via AI.
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Some, like OpenAI’s COO, believe fears are overblown, while others highlight potential for new roles, despite inevitable job displacement. [end quote]
The historian, Peter Turchin, coined the phrase “excess elites” in his excellent book, “Secular Cycles.” This book quantifies over a thousand years of economic and social boom and bust cycles.
As the population grows and wealth becomes concentrated, there’s also an “overproduction” of elites (e.g., more educated people, children of wealthy families) competing for a relatively fixed number of elite positions. This leads to increased intra-elite competition, disunity, and the formation of “counter-elites,” who are losers with a feeling of entitlement and resentment. Wealth concentration in a few leaves the many “immiserated.” Over and over, in many countries, this combination of large populations with declining resources led by resentful counter-elites has resulted in the greatest Macroeconomic Trend shift of all - revolution.
In fact, Peter Turchin wrote another book, “Ages of Discord,” published in 2016, which used his “cliodynamic” analysis to predict a crisis in 2020 when several economic and social trends hit problems at the same time. He didn’t predict Covid but the huge demonstrations in reaction to the killing of George Floyd probably qualify.
Zohran Mamdani, the Democratic nominee for mayor of New York City, a 33-year-old democratic socialist, turned out many young voters who usually don’t vote in primaries. Excess elites in action?
Politics is banned on METAR and the OBBBA is still in the kitchen (minestrone soup) but it’s likely that Medicaid will be slashed. Combine the 78.6 million Americans on Medicaid with college graduates who are losing jobs due to AI…there might be a Macroeconomic trend change in a crisis mode.
Wendy