New Study Finds No Widespread AI Displacement of Recent College Graduates

A working paper by economists Robert Fairlie and Jane Wu from Munich’s CESifo challenges earlier claims that AI is hurting entry‑level hiring. The study, titled “The Early Impacts of AI on Employment Among Recent College Graduates,” finds no evidence of significant or widespread reductions in the hiring of recent graduates, either in absolute or relative terms. The authors argue that as AI becomes capable of performing standardized tasks, firms may cut new hires for simpler roles rather than lay off experienced staff. They note that 2026 graduates could face higher risk than those who graduated a year or two earlier, citing a sharp rise in firms replacing tasks with AI, increased AI spending per employee, and higher ChatGPT Enterprise token usage in the past year.