Bloomberg Businessweek Podcast Episode Summary

Episode Title

US Sees Spike in Youth Joblessness
Date: September 8, 2025
Hosts: Carol Massar & Tim Stenovec
Guest: Dan Shapiro, COO of LinkedIn

Main Theme

This episode dissects the recent troubling uptick in youth unemployment in the United States, in the wake of an underwhelming jobs report. The hosts are joined by Dan Shapiro from LinkedIn, who lends data-driven perspective on shifting labor market dynamics, especially as they affect new graduates and young workers. Discussions include the key challenges facing entry-level job seekers, how employers are rethinking talent in the AI era, broader labor shortages, and evolving compensation trends.

Key Discussion Points & Insights

1. Current State of the US Labor Market

• Moderation in Job Growth: Recent jobs report shows only 22,000 nonfarm payroll jobs added in August, well below expectations.
• Declining Opportunities: The jobless rate has ticked up to 4.3%, with revisions showing June experienced the first employment shrinkage since 2020.
• Quote (Host):

  "We did see job growth moderate materially in recent months and openings have declined, weighing on broader economic activity." (01:43)

2. Youth Unemployment - A Worsening Trend

• New Highs: Unemployment among 16-24 year olds now at 10.5%, highest since April 2021.
• Entry-Level Struggles: Recent grads are finding it harder to land first jobs; recruiting for entry-level roles has slowed down significantly.
• Quote (Bloomberg Host):

  “That unemployment rate now at 10.5%, that’s the highest it’s been going back to April of 2021.” (03:32)

• Quote (Dan Shapiro):

  "There has been some reports of slowdown in the amount of entry level hiring that companies are doing...it might be more competitive than we have seen in prior years." (02:31)

3. The AI Factor: A Blessing and a Barrier

• AI Skills Gap: Employers are prioritizing candidates with AI tool proficiency, viewing new grads as potentially more adaptable.
• Advice to Young Workers: Emphasize AI fluency and the ability to apply new technologies in the workplace.
• Quote (Dan Shapiro):

  “Companies are looking for people comfortable with AI tools...they might be more flexible to adopt some of the new technologies that are so in demand.” (02:31)

• Long-Term Impact: Those who leverage this period to build and demonstrate AI skills may thrive as companies undergo digital transformation.
• Quote (Dan Shapiro):

  “The people that build great careers are the people that use this opportunity as a chance to really show what they’re capable of and help organizations go through a transformation that, honestly, a lot of leaders are nervous about.” (04:20)

4. Defining 'AI Fluency':

• The Moving Target: What constitutes “AI fluency” is evolving. Prompt engineering—a trendy role two years ago—is now much less relevant.
• AI as a Habit: It’s about integrating AI into daily workflow and continuously exploring how it can improve routine tasks.
• Quote (Dan Shapiro):

  “51% of workers around the world, they think of keeping up on AI tools as like a completely other job that they're doing on top of their day job.” (05:31)

• Quote (Dan Shapiro):

  "On a daily basis, you look at the things that you're doing and you ask yourself, is there something that I could be doing better by using AI?" (05:31)

5. Labor Shortages and Skills Gaps Beyond AI

• Field Roles Still in Demand: Despite AI’s prominence, trades and field roles (e.g., electricians, contractors) are hard to fill and not always replaceable by technology.
• Immigration and Talent Pool: Host raises concern that pushback against immigration may be limiting available talent for vital roles.
• Emerging Tools: LinkedIn’s new Hiring Assistant product uses “agentic technology” to help recruiters find overlooked talent with the right skills.
• Quote (Dan Shapiro):

  “Even though hiring has slowed, they consistently still say that one of the biggest challenges that they have is finding great talent for whatever skills they're looking for.” (07:18)

6. Compensation Trends

• Wages Holding Steady (So Far): Despite softer job growth, average hourly earnings rose 3.7% year-over-year.
• Possible Future Changes: Companies are balancing investments in AI with managing compensation and hiring numbers.
• Quote (Dan Shapiro):

  “Hiring trends have slowed but wages have maintained fairly stable. So it'll be interesting to see if that persists.” (08:50)

Notable Quotes & Memorable Moments

• Dan Shapiro (LinkedIn) on Entry-Level Hiring:

  "Perhaps you're worried about [new grads] landing their first role. And so it might take them a little bit longer, it might be a bit more competitive than we have seen in prior years." (02:31)

• On AI’s Rapid Evolution:

  “What was hip and new two years ago is now becoming not what people are focused on...There is a mix of understanding what tools are out there and what they can do, but also just to have a habit of bringing it into your daily work and honestly showing your colleagues around you what's possible when you find that nugget.” (05:31)

• On the Unfilled Roles Beyond Tech:

  “If you need a contractor or a plumber or electrician, they're not around. So I don't necessarily see the AI connection there. I mean, where else are there the disconnects maybe in our labor force?” (06:39, Host)

Important Timestamps

• 01:43 — Episode dives into the latest jobs report and broader labor trends.
• 02:31 — Dan Shapiro discusses shifts in entry-level and youth employment, AI demand.
• 03:32 — Youth unemployment at a post-pandemic high.
• 05:31 — Redefining “AI fluency” and its workplace implications.
• 07:18 — Discussion of shortages in skilled field and trade roles; LinkedIn’s new hiring tech.
• 08:50 — Wage trend observations and company strategies.

Conclusion

This episode underscores the challenging job landscape facing young Americans, especially recent graduates, amidst rising youth unemployment and an evolving labor market increasingly structured around artificial intelligence. The insights from LinkedIn’s Dan Shapiro offer both a sobering look at near-term hiring slowdowns and an optimistic call for adaptability: youths who embrace AI and lifelong learning are best positioned to thrive in this transitional economy. Non-tech roles remain crucial and hard to fill, compounding the complexity of workforce management in 2025.