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Cesifo Research

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CESifo study finds no rise in unemployment for recent college grads despite AI adoption

A new analysis from Munich's CESifo institute examined US Census Bureau data on bachelor's degree holders aged 22-25 not enrolled in further education, finding a summer 2026 unemployment rate of 7.3% — within the range seen since 2022. Researchers Robert Fairlie and Jane Wu tracked summer figures from 2022 through 2026, spanning the release and adoption of ChatGPT, and found the rate has fluctuated between 6.3% and 7.8% over that period without a clear worsening trend.

CESifo study finds no broad AI-driven hiring drop for recent college grads

A working paper from CESifo researchers Robert Fairlie and Jane Wu concludes there is no significant evidence that AI has widely reduced hiring or increased displacement among recent college graduates, contradicting an earlier Stanford study that found weaker entry-level employment in AI-exposed fields. The researchers note firms have recently increased AI spending and task automation, suggesting graduates in 2026 could face different conditions than those studied so far.