Overview

• Jerome Powell described a "low firing, low hiring" labor market and said recent graduates and minorities are struggling to find work.
• Goldman Sachs reported that job reallocation has declined across states and industries, with churn below pre-pandemic levels and young workers’ average job searches lengthening from roughly 10 to 12 weeks since 2019.
• UBS called the U.S. youth unemployment surge "peculiar" compared with improving youth outcomes in Europe and Japan, arguing it reflects a broad hiring freeze rather than AI displacement.
• Powell said AI may contribute but is not the primary driver, while experts warn of lasting scarring for cohorts who begin careers during prolonged hiring restraint.
• Fresh analysis points to structural pressures including more college-educated workers competing for entry-level roles, higher unemployment in several computer-related majors, and a growing shift by some Gen Zers toward trade jobs.