{"id":44261,"date":"2026-06-01T14:43:06","date_gmt":"2026-06-01T14:43:06","guid":{"rendered":"https:\/\/financialrush.com\/?p=44261"},"modified":"2026-06-01T14:43:06","modified_gmt":"2026-06-01T14:43:06","slug":"remote-work-is-worsening-youth-unemployment-new-york-fed","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=44261","title":{"rendered":"Remote work is worsening youth unemployment: New York Fed"},"content":{"rendered":"

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Morsa Images | Digitalvision | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Both remote work<\/a> and youth unemployment<\/a> are on the rise since the Covid pandemic \u2014 and the two trends are related, according to new research by the Federal Reserve Bank of New York. <\/p>\n

The unemployment rate for young college graduates swelled to 5.6% in March 2026 from 3.6% in March 2019, the New York Fed economists wrote in a blog post published Monday. They estimate that remote work can account for 64% of the recent increase.<\/p>\n

\u201cEmployers may not want to hire fresh graduates onto distributed teams because it is more difficult to teach them the requisite skills from afar,\u201d the authors said. <\/p>\n<\/div>\n

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Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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While the impact of artificial intelligence on entry-level jobs<\/a> has received much attention recently, the expansion of remote work has likely had a greater impact on youth unemployment, they wrote. <\/p>\n

The New York Fed researchers compared unemployment rates between inexperienced and more experienced employees across \u201cremotable\u201d jobs, such as software engineers and financial analysts, and \u201cnon-remotable\u201d jobs, such as funeral home managers and nurses. They also used proprietary data from an undisclosed Fortune 500 company. <\/p>\n

Very few Gen Z workers \u2014 6% \u2014prefer fully on-site work, a Gallup survey<\/a> from May 2025 found. Most, 71%, said they prefer a hybrid arrangement. <\/p>\n<\/div>\n

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Industries with higher rates of remote work showed bigger jumps in productivity, according to 2024 research<\/a> by the U.S. Department of Labor. <\/p>\n

But companies may be hesitant to hire inexperienced workers when they won\u2019t be in the office, the New York Fed researchers wrote.<\/p>\n

\u201cRemote work has weakened incentives to hire young workers by impeding on-the-job training,\u201d they wrote. <\/p>\n<\/div>\n

\u2018Lasting consequences\u2019 for college grads <\/h2>\n
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Those working separately from colleagues may receive less feedback, which can especially hinder the development of those newer to the workforce, the New York Fed authors wrote. <\/p>\n

Their research also found that one Fortune 500 company hired fewer inexperienced workers during the pandemic because of the challenges to providing education and mentorship from afar \u2014 a dynamic that they said could be playing out more broadly now with widespread remote work. <\/p>\n

\u201cThe high unemployment rates of young college graduates are particularly concerning because early-career experiences can have lasting consequences,\u201d according to the blog post. <\/p>\n<\/div>\n

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