AI-Exposed College Majors Linked to Weaker Employment and Pay, Study Finds
A U.S. Census Bureau study found a five-point drop in initial employment and a 13 percent earnings decline among the most exposed majors.
TL;DR
- Graduates from the 10 percent of college majors most exposed to AI saw a 5 percentage point decrease in finding jobs after graduation since late 2022.
- Initial quarterly earnings for these graduates fell by approximately 13 percent compared to those in less AI-exposed fields.
- Computer science, computer and information systems, and computer engineering majors experienced the most significant declines in employment and earnings post-2022.
- About half of the earnings decline is due to a shift from high-paying industries to lower-paying sectors like Retail Trade and Accommodation and Food Services.
- While the earnings gap narrows over two years, it's unclear if these graduates will fully catch up to those who entered the market before generative AI.
- A separate survey found that communications, journalism, and media graduates were most likely to wish they had chosen a different major due to AI's impact.
- A Federal Reserve Bank of St. Louis report suggests AI is part of a broader challenge for young workers, with a decline in job openings being a major factor.
- AI is seen as raising the bar for young workers, making it harder to secure their first job, rather than eliminating jobs across the economy.