{"id":95782,"date":"2026-03-18T19:08:49","date_gmt":"2026-03-18T22:08:49","guid":{"rendered":"https:\/\/ubirataonline.com.br\/servicenow-ceo-says-that-new-college-graduate-unemployment-could-reach-30-thanks-to-ai-automation\/"},"modified":"2026-03-18T19:08:50","modified_gmt":"2026-03-18T22:08:50","slug":"servicenow-ceo-says-that-new-college-graduate-unemployment-could-reach-30-thanks-to-ai-automation","status":"publish","type":"post","link":"https:\/\/ubirataonline.com.br\/en\/servicenow-ceo-says-that-new-college-graduate-unemployment-could-reach-30-thanks-to-ai-automation\/","title":{"rendered":"ServiceNow CEO says that new college graduate unemployment could reach 30% thanks to AI automation"},"content":{"rendered":"

<\/p>\n

AI tools<\/a> are already spurring fierce job competition<\/a> among Bambi-legged Gen Zers hoping to land their first entry-level job out of college. And the situation could get even worse, one tech boss is warning.<\/p>\n

\n

\u201cI think young people coming out of university today [are experiencing] 9% unemployment,\u201d Bill McDermott<\/a>, the CEO of AI-driven software company ServiceNow<\/a>, recently told<\/a> CNBC.<\/em> \u201cI think it could easily go into the mid-30s in the next couple of years.\u201d<\/p>\n

When evaluating what is disrupting the budding workforce, the boss of the $123 billion American tech giant pointed the finger at AI agents<\/a>. McDermott predicted that there will be about three billion digital, non-human agents added to enterprises by 2030, which have the ability to automate routine tasks typically done by entry and mid-level employees.\u00a0<\/p>\n

\u201cWhat\u2019s happening now, for the non-differentiating roles, [is] so much of the work is going to be done by agents,\u201d the ServiceNow<\/a> CEO continued. \u201cSo it\u2019s going to be challenging for young people to differentiate themselves in a corporate environment.\u201d<\/p>\n

Already, around 5.6% of recent U.S. college graduates aged 22 to 27 are unemployed, compared to 4.2% of the general population, according to the<\/a> Federal Reserve Bank of New York. And looking ahead, CEOs and experts alike are hesitant that<\/a> entry-level hiring will make a comeback anytime soon. McDermott added that if other leaders follow ServiceNow in giving AI agents use cases humans were once assigned, \u201cthat will definitely put a damper on who you need to hire.\u201d<\/p>\n

Fortune<\/em> reached out to ServiceNow for comment.\u00a0<\/p>\n

Fresh-faced graduates are caught in the crosshairs of an AI work revolution\u00a0<\/h2>\n

Tech leaders with a front-row seat to the AI-driven workforce revolution have been sounding the alarm of a job takeover. The \u201cgodfather of AI\u201d Geoffrey Hinton <\/a>warned that unemployment<\/a> will balloon because \u201crich people are going to use AI to replace workers\u201d; Anthropic<\/a> CEO Dario Amodei predicted that half<\/a> of white-collar jobs would be automated by 2030; and OpenAI<\/a> leader Sam Altman <\/a>said the advanced tech<\/a> is already giving entry-level workers a run for their money.\u00a0<\/p>\n

\u201cToday [AI] is like an intern that can work for a couple of hours, but at some point it\u2019ll be like an experienced software engineer that can work for a couple of days,\u201d Altman said during a panel<\/a> with Snowflake CEO Sridhar Ramaswamy last year.\u00a0<\/p>\n

As AI continues to advance at a breakneck pace, employment for vulnerable young workers has taken a turn for the worse. Since ChatGPT took the world by storm in 2022, U.S. job postings have plummeted by nearly 32%, according to a November 2025 analysis<\/a> of Federal Reserve data<\/a>. And 2026 reports have failed to drum up optimism, as the American economy unexpectedly shed<\/a> 92,000 jobs in February, marking the biggest decline since last October.\u00a0\u00a0<\/p>\n

And just as McDermott observed, young inexperienced workers are most susceptible to the shift. About 58% of Gen Z students who graduated in 2024 and 2025 were still looking for their first job<\/a>, compared to just 25% of millennial and Gen X<\/a> graduates in previous years, according to a Kickresume report<\/a> released last year. Job postings on early-career talent platform Handshake also fell more than<\/a> 16% between August 2024 and August 2025, while the average number of applications per role has jumped 26%.<\/p>\n

Hiring is down for Gen Z grads, even in tech<\/h2>\n

Even industries that are famous for plucking young, spry talent right out of college and putting them in high-paying jobs are reeling back.\u00a0<\/p>\n

Hiring for new graduates in the tech sector<\/a> at 15 of the largest companies fell by over 50% since 2019, according to a 2025 report from<\/a> VC firm SignalFire. Before the pandemic, these Gen Z grads made up 15% of Big Tech hires\u2014now, they only account for 7%.<\/p>\n

Leaders are split on whether the current job market, marked by massive layoffs and stalled hiring, is reflective of AI automation or a correction of pandemic-era overhiring. But many can agree on one thing: entry-level jobs are the most endangered by AI. J. Scott Davis, assistant vice president of the Dallas Fed, believes young workers primarily have book smarts<\/a> easily automatable by AI tools\u2014unlike work experience.\u00a0<\/p>\n

\u201cReturns on job experience are increasing in AI-exposed occupations,\u201d Davis recently wrote<\/a>. \u201cYoung workers with primarily codifiable knowledge and limited experience will likely face challenging job markets.\u201d<\/p>\n<\/div>\n

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AI tools are already spurring fierce job competition among Bambi-legged Gen Zers hoping to land their first entry-level job out of college. 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