ServiceNow CEO Says More Graduates Will Be Unemployed
Bill McDermott, the CEO of ServiceNow, said that artificial intelligence could make it very hard for new graduates to find work. He said that unemployment among recent college graduates could go up a lot as more jobs are automated.
McDermott thought the rate might go up to the mid-30% range in the next few years. His comments show that people are more worried than ever that automation will take over entry-level jobs in businesses.
Source: Bloomberg.com
AI Agents Transform Workplace Productivity And Hiring
In many fields, artificial intelligence agents are taking on more and more tasks that used to be done by people. These tools help with customer service, manage data analysis, and automate workflows.
Companies that use these technologies often say that they are more productive and that their costs go down. But the gains in efficiency may make fewer people want to enter the job market.
Entry Level Jobs Face Growing Automation Risk
AI can now do a lot of the tasks that people do in entry-level corporate jobs quickly and well. More and more, companies use automated systems for tasks like coding assistance, marketing analysis, and technical support.
Companies may need fewer junior employees as they start to use AI agents in their daily work. This change could make it harder for recent college graduates to get work experience early in their careers.
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Companies Reduce Hiring While Investing In AI
As artificial intelligence capabilities grow, a number of big tech companies have already started reorganizing their workforces. Some companies are cutting back on hiring plans and putting more money into advanced automation systems.
These choices are part of a bigger plan to use digital infrastructure to boost productivity as much as possible. Companies want AI tools to do jobs that used to need a lot of people to do them.
Tech Leaders Say Companies Will Have Fewer Workers
Leaders in the tech industry have all agreed that artificial intelligence could have an effect on the workforce. According to executives, automation could help businesses make more money while keeping or even lowering the number of employees.
Amazon leaders have also said that AI tools could slowly cut down on the number of employees at the company. Similar strategies can be seen in technology companies that are adapting to the fast-changing digital world.
Economic Data Already Shows Labor Market Pressure
Recent research from the Federal Reserve Bank of New York shows that new graduates are already having trouble finding jobs. At the end of 2025, about 5.7% of recent graduates were out of work.
During the same time period, 42.5% of college graduates were underemployed. These numbers show that a lot of graduates are having trouble finding jobs that match their level of education.
AI Adoption May Accelerate Future Workforce Changes
Experts say that AI is a different kind of technological disruption than the changes that happened in the past in industry. Before, automation waves mostly affected jobs in manufacturing and manual labor.
AI systems now have an effect on white-collar jobs like software development, marketing analysis, and administrative services. As more people use it, businesses and schools may need to come up with new ways to train workers for changing job markets.
