As artificial intelligence continues to make appearances in almost all aspects of our lives, there have been rising concerns for whether it’s taking jobs, especially those of new college graduates entering the labor market.
Colorado State University student Eleanora Proffitt said AI has caused her to worry for the future in an already tight labor market.
“We’re already in a job shortage,” Proffitt said. “AI should be helping us, … not taking our jobs away.”
The unemployment rate of newly graduated college students reached its highest percentage since July 2021 — 5.8% — in April, according to a report by the Federal Reserve Bank of New York. This number, compared to an unemployment rate of 4% for all workers that same month, has raised some alarms regarding AI’s impact.
Oxford Economics, a global economic advisory firm, stated in a recent report that “there are signs that entry-level positions are being displaced by artificial intelligence at higher rates.”
Various job sectors have been affected by AI differently. A working paper published by Stanford Digital Economy Lab found that between late 2022 and July 2025, areas of employment for young workers in software engineering, which SDEL referred to as an “AI-exposed occupation,” has declined by nearly 20%.
Other fields such as customer service, accounting and auditing, secretarial and administrative work, computer programming and sales revealed a similar pattern, according to the paper.
According to CNBC, Some major firms and companies such as JPMorgan Chase, Amazon and Walmart are starting to make the switch to AI for lower-level white-collar jobs because of its cheaper price and supposed efficiency. However, there are still many findings that claim AI is not a major component regarding recent unemployment rates for all recent college graduates.
“Will (AI) take jobs? Yes,” said Martin Shields, a Colorado State University professor of economics. “Will it take all the jobs? Certainly not. And will it create a lot of opportunities? Yes, it will.”
According to an article by The Budget Lab at Yale, the broader labor market has not been hugely disrupted since the release of ChatGPT — a popular AI chatbot developed by OpenAI. The lab notes that an impact on the labor market is likely to take much longer than just 33 months and can take decades to fully settle in.
A current trend in the labor market is that fewer people are quitting their jobs, and fewer employers are hiring because of economic uncertainty. This is known as a labor market tightening, which poses an even greater challenge for fresh college graduates trying to get their foot in the door.
Adjustments to technological progress has been done throughout history and are expected to a certain degree, but some are concerned that job losses may look a little different now, as AI is replacing jobs that were generally thought of as “safe.” Despite the current state of the job market, the Future of Jobs Report 2025 by World Economic Forum estimated that although AI could displace 92 million jobs by 2030, it could add 170 million new ones.
These positions could be in areas of AI development, research and safety, as well as robotics.
“People who can use the technology, lead the use of this technology, communicate it, can check it, can ask it the right questions — those people will thrive with that skill set,” Shields said.
A report by Lightcast, a labor insight platform, found that in an analysis of over 1.3 billion job postings, there has been a surge in demand for AI skills — and higher average pay for jobs that required them.
CSU alumnus and Chief Operating Officer for ZenRows, a web data company, Robert Mata said he has been in tech for 15 years and pays close attention to AI usage when hiring. Mata is not just interested in whether new hires use AI, but more so how they use the tool in the context of the role they are applying for.
“It goes way beyond, ‘Hey, do you use AI daily for X, Y, Z?’” Mata said. “It really depends on the role and the usage of AI.”
Mata said he has had to assess how potential candidates for various positions utilize AI. For example, he asks applicants for sales positions how they use AI to better find leads, source data, acquire contact information and more.
Taking on the potential growth and challenges brought by AI, CSU has begun integrating AI literacy into higher education. The webpage titled AI @ CSU has news related to AI, resources for learning how to use AI and pages describing the institution’s mission and vision with AI.
CSU also offers a range of classes available to students who wish to expand their skills in AI, with more to come. As the job market adjusts to new technology, experts suggested that no matter what field students dream of working in, learning how to better navigate AI and use it as a tool are what experts and the job market are alluding to as crucial in this job climate.
“Let’s use this tool,” Shields said. “Let’s recognize its limitations. Let’s recognize that there are a lot of things that we can do that it can’t and hone in on those skills.”
Reach Katya Arzubi at news@collegian.com or on social media @RMCollegian.