How AI Is Disrupting the Job Market for Recent Grads

Summary

WSJ Tech News Briefing: How AI Is Disrupting the Job Market for Recent Grads Release Date: July 29, 2025

The Wall Street Journal's "Tech News Briefing" delves into two major topics in the July 29, 2025 episode: the latest updates on Apple products and the profound impact of Artificial Intelligence (AI) on the job market for recent college graduates. Hosted by Bel Lin, the episode features insightful discussions with WSJ personal tech columnist Nicole Nguyen, correspondent Patrick Coffey, and reporter Lindsey Ellis.

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1. Apple Product Updates and Optimal Buying Strategies

Overview: Bel Lin opens the episode by addressing consumers' eagerness to purchase new Apple products, particularly the iPhone. She introduces Nicole Nguyen and Patrick Coffey, who provide expert analysis on the upcoming Apple releases and offer guidance on the best times to invest in Apple gadgets.

Key Discussions:

• Timing Your iPhone Purchase:

  • Nicole Nguyen advises against buying a new iPhone in the summer, suggesting that enthusiasts wait until the fall.
    • Quote: “[01:52] Nicole Nguyen: So my biggest takeaway is that we should not buy new iPhones this summer. Why should consumers, even dedicated fans, wait until the fall?”
  • Patrick Coffey explains the predictable release cycle of Apple products, typically unveiling new iPhones in September. Waiting allows consumers to benefit from reduced prices on older models and ensures they receive extended support.
    • Quote: “[02:02] Patrick Coffey: Gadgets are seasonal and at least for the last decade or so have had a very regular release pattern. iPhones almost always come out in September... you can get an additional year of support for that device.”

• iPad Upgrade Considerations:

  • Nicole Nguyen questions whether current iPad models are worth upgrading or if users should wait for the anticipated Pro update.
  • Patrick Coffey recommends the iPad Air as the optimal choice for most users, noting that both the basic iPad and iPad Air were refreshed recently, making an immediate upgrade unnecessary. He is skeptical about the forthcoming iPad Pro update, predicting it may offer only incremental improvements.
    • Quote: “[02:32] Nicole Nguyen: What should regular iPad users who may want to upgrade know about the current models and should they consider waiting for the Pro update?”
    • Quote: “[02:41] Patrick Coffey: The iPad for me gets the green light. Most people should get the iPad Air... But if you want an iPad Pro. That's more of a yellow light for me.”

• Airtags and Accessories:

  • Nicole Nguyen highlights the stagnation in Airtag updates over the past four years and discusses whether consumers should await a potential second generation.
  • Patrick Coffey suggests that while immediate purchases are viable for urgent needs, consumers should consider waiting for future models that may offer enhanced features like longer range capabilities.
    • Quote: “[03:26] Patrick Coffey: If you're going on a trip and you're desperate for a thing locator... But if you can hold off airtags with longer range capabilities and other new features are coming in the fall.”

• Consumer Sentiment on Product Updates:

  • Nicole Nguyen raises the common consumer frustration regarding minimal updates to Apple products.
  • Patrick Coffey acknowledges the trend but remains optimistic about slight innovations, such as the rumored "iPhone 17 Air," which may entice some users to upgrade despite not being revolutionary.
    • Quote: “[03:58] Patrick Coffey: I hate to disappoint you Patrick, but probably not.... There are reports of a folding future iPhone that looks like a small tablet and you can fold the screens over. That probably will not come until next year.”

• Impact of Tariffs on Apple Pricing:

  • Nicole Nguyen inquires about the influence of tariffs on Apple product pricing.
  • Patrick Coffey notes that while Apple hasn't raised prices yet, the company might leverage new features rather than citing tariffs if they decide to increase costs.
    • Quote: “[04:47] Patrick Coffey: Apple has not raised prices yet... However, I don't believe that Apple will point to tariffs as the reason to raise prices. They'll say the new features justify an increase.”

Conclusion: The segment concludes with Nguyen and Coffey advising consumers to strategically time their Apple purchases to maximize value and anticipate forthcoming product enhancements.

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2. AI's Disruption of the Job Market for Recent Graduates

Overview: Transitioning from consumer technology insights, Bel Lin introduces the pressing issue of AI's impact on the employment landscape for recent college graduates. WSJ reporter Lindsey Ellis joins the discussion to elaborate on rising unemployment rates among young professionals and the shifting dynamics of entry-level positions.

Key Discussions:

• Rising Unemployment Rates:

  • Lindsey Ellis presents data from the Burning Glass Institute indicating that unemployment among recent college graduates is accelerating faster than for their counterparts with high school or associate degrees.
    • Quote: “[06:16] Bel Lin: Unemployment among recent college grads is now rising faster than for young adults with high school or associate degrees, according to a Burning Glass Institute analysis of labor data.”

• AI Replacing Entry-Level Jobs:

  • Ellis explains that companies are increasingly utilizing generative AI tools like ChatGPT to perform tasks traditionally handled by entry-level employees, leading to reduced hiring in this demographic.
    • Quote: “[06:56] Lindsey Ellis: ... a lot of companies are saying, before we make a hire, let's see if we can get some of this work done with these generative AI tools. And they found that the tasks that these tools are most capable of doing are the tasks that companies have long leaned on entry level workers to complete.”

• Fundamental Realignment of the Workforce:

  • Ellis discusses the shift in the employment paradigm where entry-level positions, once a pathway for young graduates to gain experience and ascend their careers, are no longer being offered in the same capacity. Companies remain productive without these roles, indicating a significant structural change in workforce management.
    • Quote: “[07:45] Lindsey Ellis: ... companies that have slowed hiring of this cohort are still being quite productive and generating a lot of economic activity. And so they haven't seen an immediate downside to refraining from hiring a lot of these new graduates.”

• Sector-Specific Impact:

  • Ellis identifies key sectors most affected by the slowdown in graduate hiring, including information technology, finance, insurance, and technical services. She cites examples like Grindr opting for seasoned engineers over junior hires and marketing agencies eliminating entry-level positions in favor of AI-driven solutions.
    • Quote: “[08:33] Lindsey Ellis: Some of the sectors that we've been pointed to are information tech jobs, finance, insurance, technical services... This year, instead of coaching a summer intern, I'm Just going to talk into ChatGPT and it's going to clean up the copy and those posts will be ready for airtime.”

• AI Capabilities and Limitations:

  • Ellis addresses concerns about AI's ability to perform tasks typically handled by recent graduates, including issues related to AI hallucinations and errors. She emphasizes that while AI can undertake initial data processing and information gathering, human oversight remains crucial for accuracy and critical analysis.
    • Quote: “[09:22] Bel Lin: As we talk about AI technology improving, can it really do what recent college grads are doing? And what about its tendency to hallucinate or make mistakes?”
    • Quote: “[09:32] Lindsey Ellis: ... the skill that is most important for junior hires is a healthy dose of skepticism because you have to constantly challenge the information that AI is spitting out.”

• Strategies for Recent Graduates:

  • Ellis shares recommendations for entry-level workers to navigate the evolving job market. Emphasizing the importance of client-facing roles and interpersonal skills, she highlights that building relationships and engaging directly with clients are areas where AI cannot easily replace human workers.
    • Quote: “[10:37] Lindsey Ellis: ... they are saying that client facing roles are where they are hoping to lean into at this stage... the relationships are something that people can't really replicate with AI at this stage.”

Conclusion: Lindsey Ellis underscores the necessity for recent graduates to adapt by developing skills that complement AI technologies, such as critical thinking and interpersonal communication. The discussion paints a picture of a workforce in transition, urging young professionals to pivot towards roles that leverage uniquely human capabilities.

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Final Thoughts: The episode of "Tech News Briefing" effectively juxtaposes consumer technology insights with significant labor market trends shaped by AI. While Apple product enthusiasts are advised to time their purchases strategically, recent graduates are counseled to adapt to a transformed job landscape where AI plays an increasingly dominant role. The discussions provide valuable perspectives for both consumers and young professionals navigating the rapidly evolving tech-driven environment.

Transcript

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[Bel Lin]

Welcome to Tech News Briefing. It's Tuesday, July 29th. I'm Bel Lin for the Wall Street Journal. If you're looking to buy a new iPhone, you might want to pump the brakes. Learn how to optimize your Apple buying schedule this summer. As WSJ personal tech columnist Nicole Nguyen tells us which Apple products to buy right now and which are worth the wait, then the outlook isn't so bright for college graduates looking for starter jobs. Some companies are Openly admitting that AI can do the work of fresh faced 22 year olds and replacing them with tools. Are that tools like ChatGPT? But first, Apple never says much publicly about its coming products, but WSJ reporters have dug up that a slimmer iPhone model is on the horizon, plus updates are due for airtags and other accessories. WSJ personal tech columnist Nicole Nguyen joins Patrick Coffey to demystify what this update schedule means for which Apple products are are worth shelling out for this summer.

[Nicole Nguyen]

So my biggest takeaway is that we should not buy new iPhones this summer. Why should consumers, even dedicated fans, wait until the fall?

[Patrick Coffey]

Gadgets are seasonal and at least for the last decade or so have had a very regular release pattern. IPhones almost always come out in September, and when that happens, the previous models drop in price. Like most modern gadgets, iPhones have expiration dates, and if you wait just a couple of months for September for the new model to come out, you can get an additional year of support for that device.

[Nicole Nguyen]

What should regular iPad users who may want to upgrade know about the current models and should they consider waiting for the Pro update?

[Patrick Coffey]

The iPad for me gets the green light. Most people should get the iPad Air. That's the sweet spot iPad in terms of what it offers and its price. Both the Basic iPad and iPad Air were recently refreshed in 2025, so we're probably not expecting another model this year. So if you want an iPad, go for it. But if you want an iPad Pro. That's more of a yellow light for me. The iPad Pro hasn't been refreshed for about a year and so we may get an update, but if we do, it's probably going to be a pretty lame incremental one, so I'll let you decide for yourself.

[Nicole Nguyen]

Airtags haven't been updated in four years, which is a lifetime in the tech world. We've seen reports of a second gen AirTag, but is it worth waiting? And why?

[Patrick Coffey]

If you're going on a trip and you're desperate for a thing locator and you need an airtag to put in your luggage, I wouldn't necessarily stop you from doing that. But if you can hold off airtags with longer range capabilities and other new features are coming in the fall the.

[Nicole Nguyen]

Most common consumer complaint for all Apple products is that the updates are minimal and have no real effect on user experience or functionality. Will there be any exceptions to that rule this year?

[Patrick Coffey]

I hate to disappoint you Patrick, but probably not. Analysts and the Wall Street Journal reporting do point to a brand new model, and that new model is probably going to be something like an iPhone 17 Air. It'll be a really skinny phone that could convince some people to upgrade, but it's not going to feel like a monumental, revolutionary change. There are reports of a folding future iPhone that looks like a small tablet and you can fold the screens over. That probably will not come until next year.

[Nicole Nguyen]

So have we seen tariffs affect prices for Apple products yet? Or is this still entirely speculative? I know the Journal has reported that the company is considering raising prices. Do we know what to expect if that does come to pass?

[Patrick Coffey]

Apple has not raised prices yet. However, Apple has not changed the price of its core iPhone models in many, many years, and they may take this opportunity to raise the cost of iPhones. However, I don't believe that Apple will point to tariffs as the reason to raise prices. They'll say the new features justify an increase.

[Bel Lin]

That was WSJ personal tech columnist Nicole Nguyen Coming up, AI is here and it's not going away. That means fewer positions geared at entry level workers and more competition between recent grads and students for a smaller number of positions. With we break down the bigger picture after the break.

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[Bel Lin]

Unemployment among recent college grads is now rising faster than for young adults with high school or associate degrees, according to a Burning Glass Institute analysis of labor data. That's just one indication of how the job market for young professionals is starting to become completely upended by AI. WSJ reporter Lindsey Ellis joins us to discuss what these trends mean for new job seekers and what some professionals suggest entry level workers do to stay ahead of the new AI curve. Lindsey, let's talk about the big trend behind your story, which is that some companies are declining to hire entry level workers. Why is this happening?

[Lindsey Ellis]

There's been a lot of economic uncertainty, from geopolitical conflict to the trade war to the election. And as AI technology has advanced, a lot of companies are saying, before we make a hire, let's see if we can get some of this work done with these generative AI tools. And they found that the tasks that these tools are most capable of doing are the tasks that companies have long leaned on entry level workers to complete.

[Bel Lin]

And one of the things you write in your story is that this trend kind of heralds a fundamental realignment in how the workforce is structured. What does that mean?

[Lindsey Ellis]

There's long been an agreement of sorts between companies and new graduates. These employees are young and ambitious and they're willing to work hard and earn less than more seasoned corporate veterans would command. And so in exchange, they get training, they get experience, and that offers them a foothold in the job market. But what we've found here is companies that have slowed hiring of this cohort are still being quite productive and generating a lot of economic activity. And so they haven't seen an immediate downside to refraining from hiring a lot of these new graduates.

[Bel Lin]

Let's talk about specifically some of the sectors in which graduate hiring has slowed the most.

[Lindsey Ellis]

Some of the sectors that we've been pointed to are information tech jobs, finance, insurance, technical services. For example, Grindr CEO said that they would rather hire more seasoned engineers instead of junior coders straight out of school. One recruiting firm told me that typically they would have high volume demand from marketing agencies to hire entry level staff. That work has totally vanished. One company I talked to, the CEO basically said, typically we bring on a summer intern. For years and years we've done that, especially for social media. This year, instead of coaching a summer intern, I'm Just going to talk into ChatGPT and it's going to clean up the copy and those posts will be ready for airtime.

[Bel Lin]

As we talk about AI technology improving, can it really do what recent college grads are doing? And what about its tendency to hallucinate or make mistakes?

[Lindsey Ellis]

That's a great question and it's something that a lot of companies are grappling with. So one company, for example, Carlyle in the past entry level hires, if they were evaluating a deal, it's an investment firm, they would turn to Google and look for articles there, kind of request documents from companies, look at that information manually copy and paste information from one document to the next. Now a lot of that work is being done by AI, but they are still hiring junior analysts to make sure that information is accurate, that the analysis is accurate. One hiring lead told me recently that the skill that is most important for junior hires is a healthy dose of skepticism because you have to constantly challenge the information that AI is spitting out. So needing to question it and poke holes in an argument is a new skill that is emerging for entry level talent and potentially talent writ large.

[Bel Lin]

What should entry level workers do in this age of AI? What did your sources recommend?

[Lindsey Ellis]

Something that some of my sources are telling me who are in this phase of life. They say that client facing roles are where they are hoping to lean into at this stage. One woman I talked to was working in payroll and now she's looking, looking for a more client facing job thinking that if I'm in a business back end role I have a higher liability of getting laid off or my job being automated. And the relationships are something that people can't really replicate with AI at this stage. So a lot of young professionals who I'm talking to are trying to find jobs that have a lesser chance of being taken over by artificial intelligence. And I'm curious myself to see where that goes from here.

[Bel Lin]

That was WSJ reporter Lindsay Ellis. And that's it for Tech News Briefing. Today's show was produced by Zoe Culkin with supervising producer Melanie Roy logging off. I'm Bell Lin for the Wall Street Journal. We'll be back this afternoon with TNB Tech Minute. Thanks for listening.

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