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AI puts the squeeze on new grads looking for work

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9 months ago

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How AI is reshaping work

A college degree is often considered the ticket to a well-paying career, and more than three million new graduates enter the workforce every year banking on that promise.

However, this year, those armed with a newly minted diploma have faced one of the toughest job markets in a decade. And next year could be as bad or worse.

As the artificial intelligence boom reshapes the workforce at an unprecedented pace, some large employers have said they’re replacing workers with AI in order to streamline operations and cut costs. Concerns about the economy, persistent inflation and a slowdown in consumer spending are also likely contributors to a reduced hiring outlook, other research shows.

Employers are even less optimistic about the overall job market for upcoming graduates than they were in the last several years, according to a new report by the National Association of Colleges and Employers. About half, or 51%, of employers rated the job market for this year’s college seniors as poor or fair, the highest share since 2020-21.

The integration of AI has “rendered moot certain types of skills that were once good currency in the labor market, and a number of entry-level jobs are going to continue to be, at the very least, crimped,” said Joseph Fuller, a professor of management practice at the Harvard Business School.

That puts direct pressure on colleges and their career services departments, he said. “The pathways to get into certain careers are going to be narrower and the burden of credentials will be steeper.”

Already, postings for entry-level jobs in the U.S. sank 35% since January 2023, according to labor research firm Revelio Labs, with AI playing a big role.

As a result, there are suddenly fewer white-collar positions for bachelor’s degree holders just starting out.

A worsening job market for new grads

In total, employers announced 1.1 million cuts so far this year, a 65% jump from a year ago and the highest level since the Covid pandemic year of 2020, according to outplacement firm Challenger, Gray & Christmas. The highest level of layoffs came from the technology sector amid a time of restructuring due to AI integration, the report said. 

Some industries are more prone to disruptions than others. Jobs in technology and finance, for example, are at greater risk largely due to generative artificial intelligence, which can supplant a human’s analytical skills, according to a separate report by Indeed. Alternatively, nursing and blue-collar jobs in manufacturing or construction are more insulated, the report found. They simply can’t be done by AI — at least not yet.

Recent data from the Federal Reserve Bank of Philadelphia also shows that higher-paying jobs that require a bachelor’s degree are more likely to be affected by AI.

New college grads face tough job market

Although the Class of 2025 submitted more job applications than their 2024 counterparts, they received fewer job offers, on average, than the previous class, the National Association of Colleges and Employers found.

Just 30% of 2025 college graduates secured a full-time job in their fields. That is down from 41% who secured full-time work in the Class of 2024, according to a separate graduate employability report by Cengage Group, an education technology company.

College career offices under pressure

At Gettysburg College in Pennsylvania, some employers who had typically attended the job and internship expo in the past did not participate this year — though they didn’t specify why, according to James Duffy, Gettysburg’s assistant vice president for co-curricular education.

But as companies restructure due to AI, many are cutting back on entry-level jobs that accounted for a significant share of employment opportunities for new grads, Duffy said.

“If we look at the jobs that AI has absorbed … there are a number of jobs that students used to move right into. Some of those jobs are no longer available,” he said.

The proliferation of new technology puts immense pressure on colleges to recalibrate at a time when higher education, as a whole, is already facing a crisis of confidence.

Amid rising college costs and ballooning student loan balances, more students are questioning the return on investment. 

Among those with student loan debt, 77% call it a “huge burden,” and 63% say the education they received hasn’t been worth the impact student loan debt has had on their overall well-being, according to a newly released study from EdAssist by Bright Horizons.

The worst-case scenario is taking on debt and graduating without a job, colleges say.  

Duffy, who oversees Gettysburg’s center for career engagement, said families of both current and prospective students are more concerned about potential job prospects after graduating than before. “Parents want to know more data and details about where students are going,” he said. “Parents want to know, ‘If I’m going to spend this money, where are they headed after four years?’ We know that is top of mind.”

To that end, Duffy said giving students as much career-readiness experience as possible is increasingly important, primarily through internships, externships and hands-on work: “It makes them more marketable, which gives them the agency of choice.”

Indeed, said Harvard’s Fuller, “more schools will need to develop coop-type opportunities.”

However, in time, such smaller private colleges like Gettysburg may be at a disadvantage compared to urban institutions that are more closely tied to big employers, Fuller added: “It’s going to be helpful to be in a school with a fair amount of employment opportunities locally.”

‘It’s not enough for students to graduate with a degree’

In July, the City University of New York kicked off a sweeping effort to improve career outcomes for its 180,000 undergraduates by integrating career-connected advising, paid internships, apprenticeships and collaborations with industry specialists across every academic concentration.

“Success depends on our ability to change and adapt,” said CUNY’s chancellor Félix Matos Rodríguez in a statement about the announcement. “It’s not enough for students to graduate with a degree … they must leave with direction, preparation, experience and connections.”

Graduates of Baruch College participate in a commencement ceremony at Barclays Center in Brooklyn, New York, June 5, 2017.

Bebeto Matthews | AP

CUNY’s goal is that all future graduates would either be enrolled in a post-graduate program or “have a job offer in hand in the field that they study,” Matos Rodríguez told CNBC. “If we develop a reputation for being a place where students have opportunities, that goes a long, long way to address some of the concerns about ROI.”

Still, the challenge remains how to measure post-graduation career success in such a quickly changing labor market, he said.

At the same time, colleges and universities are notoriously slow to adapt, according to Fuller. “Higher ed is singularly ill-equipped to deal with rapid change,” he said.

Despite those hurdles, colleges need to “create structures that allow us to pivot,” said CUNY’s Matos Rodríguez.

That means directing students toward in-demand career paths, particularly as AI creates opportunities in one industry or another, he said: “It shouldn’t be like higher ed failed because they weren’t able to read that crystal ball.” 

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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