Remote Work, Not AI, Is the Real Threat to Entry-Level Jobs: New Studies Reveal Why

For the first time in years, recent college graduates are more likely to be out of work than the average American. As of March 2026, the unemployment rate for young professionals was 5.6 percent, which is 2.6 percent higher than the overall unemployment rate, according to the Federal Reserve Bank of New York.

How Does Remote Work Affect Entry-Level Hiring?

Two recent studies suggest that remote work can reduce demand for junior employees because managers face greater challenges training and supervising inexperienced workers from a distance. As a result, employers on remote teams are hiring experienced professionals who require less guidance.

Several studies have attributed the decline in entry-level job prospects to the launch of generative AI tools. However, two new studies suggest that AI may not be the entry-level job killer we thought it was — and that the blame might be more appropriately cast on another post-pandemic phenomenon: working from home.

Is Remote Work Causing an Entry-Level Job Shortage?

Based on an analysis of resume and job board data, researchers found a sharp shift in hiring patterns. Comparing 2017-2019 and 2023-2025, entry-level hiring dropped 29 percent and junior-level hiring dropped nearly 26 percent, while hiring for senior-level roles increased more than 5 percent. Notably, the decline began in 2022, just before the launch of ChatGPT.

When evaluating the impact of AI and remote work separately, the study found both predicted a decline in junior-level new hires. But when analyzed together, remote work continued to cause junior-level hiring declines, while AI's impact became statistically insignificant.

Remote Work May Impact Training and Development

Another study by the Federal Reserve Bank of New York found that unemployment among college graduates under 29 rose from 3.1% to 3.7% between 2017-19 and 2022-25. The researchers found that remote work accounted for 64 percent of the increased unemployment rates for young professionals.

A previous study, "The Power of Proximity," found that software engineers who sat in the same office received 18 percent more coding feedback, improving their work quality. They were also more likely to ask follow-up questions and less likely to leave for better opportunities.

What This Means for Young Professionals

Historically, employers have been willing to invest time into training early-career employees. But if early-career workers cannot absorb knowledge effectively in remote environments, the "organizational frictions" of training and supervising young employees can erode the value proposition of investing in early-career talent.

Early-career professionals struggling to find a job may want to focus their search on companies that offer in-person work and a willingness to invest in their development. Stanford economist Nick Bloom advises his students to go into the office at least three days per week in the first five years of their careers.

There's some evidence that early-career professionals are already seeking out opportunities to go into the office. A Gallup poll found that Gen Z workers favored hybrid work more than any other generation and were the least enthusiastic about exclusively remote work.