This weekly update reveals a major shift happening in the American workforce as AI agents reshape the job market in ways that are hurting workers, especially young people just starting their careers.

The numbers paint a clear picture of struggle for new graduates. Research shows that 59% of recent college graduates describe finding full-time, entry-level work as "very challenging" in 2025. This is a dramatic change from previous years. Only 9% of new graduates are finding jobs easily, which shows just how tough the market has become.

When asked what's making job hunting so hard, graduates point to familiar problems. About 25% say they don't have enough experience, and 24% blame excessive competition. But there's a new worry that wasn't there before - artificial intelligence. A huge 79% of recent graduates believe that AI could be reducing the number of entry-level positions available in their chosen fields.

Scientific research is proving that these fears are real. Stanford University's Digital Economy Lab studied millions of workers and found some shocking results. They discovered that early-career workers aged 22-25 in jobs that AI can easily do experienced a 13% relative drop in employment. This decline happened even when researchers accounted for company-specific factors, which means AI's impact goes beyond just individual business decisions.

The research shows that AI affects different age groups differently. While young workers in AI-exposed jobs like software development and customer service saw big drops in employment, older workers in the same fields kept their jobs or even saw growth. For example, employment for software developers aged 22-25 declined nearly 20% by July 2025, while opportunities for more experienced developers at the same companies stayed stable or grew.

The overall job market is showing signs of stress. U.S. unemployment rose to 4.3% in August, and the Federal Reserve expects it to reach 4.5% as the labor market continues to cool. So far in 2025, the economy has only created 85,000 new jobs per month, which is much lower than the 168,000 monthly average from last year.

Worker anxiety about AI is at an all-time high. A comprehensive survey found that 89% of workers are worried about AI's impact on their job security. This isn't just fear of the unknown - 43% of workers say they personally know someone who has lost their job due to AI. This shows that AI job displacement is not just a future concern but a current reality affecting real people.

Major technology companies are leading the charge in AI-driven workforce changes. Big names like Oracle, Amazon, Microsoft, and Meta have announced substantial job cuts often directly linked to AI adoption. Amazon's CEO Andy Jassy has been particularly direct, warning employees that the company will likely need "fewer people doing some of the jobs that are being done today" as it increases its use of generative AI and AI agents.

The impact on young workers is particularly severe at large technology companies. Data shows that the number of Gen Z employees at big public tech companies has been cut in half. This dramatic reduction is happening because AI agents can now handle many of the entry-level tasks that traditionally served as stepping stones for young people starting their careers.

Faced with these challenges, workers are adapting their strategies in several ways. The data shows that 65% of job seekers now let recession fears influence their willingness to negotiate salary and benefits. Many are becoming more flexible: 38% are open to different work environments, 31% are applying to jobs outside their target industry, 27% are applying for roles they're overqualified for, and 21% are willing to accept lower salaries.

Interestingly, young people are turning to non-traditional work arrangements. 46% of recent graduates are considering temporary or flexible jobs instead of traditional full-time positions due to AI concerns. This includes 20% seeking remote or freelancing roles, 17% pursuing temporary work, and 13% exploring gig-based opportunities.

The financial pressure is forcing many to abandon their career dreams. Nearly half (49%) of recent graduates say they're now open to any job that pays well, putting financial security ahead of pursuing their ideal careers. This represents a significant shift in how young people think about work and career development.