A shortage of job openings in the US is playing a much bigger role in young people’s unemployment than their lack of artificial intelligence skills, according to a new study from the Federal Reserve Bank of St. Louis.
The unemployment rate among 18- to 24-year-olds rose 2.9 percentage points between April 2023 and December of last year because of a lack of job openings. That’s more than double the 1.1-point increase seen from employers shifting to more AI-related jobs and demanding specialized skills, though the AI effect remains significant.
