Remote work may be contributing to a tougher job market for recent college graduates, according to new research from the Federal Reserve Bank of New York. The study found employers are increasingly favoring experienced workers for roles that can be performed remotely, while hiring fewer younger workers who typically require more training and mentorship.
The research compared occupations that can largely be done remotely, such as software development, with jobs that require in-person work, such as nursing.
Between 2017โ2019 and 2022โ2024, unemployment among young college graduates working in remote-capable fields increased by about one percentage point. Meanwhile, unemployment among older workers in those same occupations declined slightly, widening the gap between early-career and experienced professionals.
The pattern was not seen in jobs that require in-person work, where unemployment rates remained more consistent across age groups, according to AP News.ย
Employers Prioritizing Experience
Researchers concluded that remote work has reduced employers’ willingness to hire inexperienced workers because training and skill development can be more challenging when teams are distributed.
The study estimates that remote work accounts for nearly two-thirds of the increase in unemployment among young college graduates since the pandemic.
Data from a Fortune 500 technology company supported the broader findings. During periods of fully remote work, the company hired fewer inexperienced workers and increased recruitment of more experienced candidates. After offices reopened, hiring of younger workers rebounded, though teams with remote arrangements still leaned toward experienced hires.
A Tougher Market for New Entrants
The findings arrive as concerns grow about artificial intelligence disrupting white-collar jobs. However, the worsening employment outlook for younger college graduates began before generative AI tools became widespread.
The study found unemployment among college graduates under age 29 rose 20% compared with pre-pandemic levels, averaging 3.7% between 2022 and 2025. For graduates aged 22 to 27, unemployment reached 5.8% last year, the highest level outside the pandemic period since 2012.
The findings suggest that while remote work remains popular among many employees, it may be altering hiring practices in ways that make it harder for younger workers to get a foothold in the labor market.
