<p>Bill McDermott, CEO of cloud computing company ServiceNow, warned in an interview with CNBC that as companies adopt AI to enhance productivity, the unemployment rate for recent college graduates could easily rise to over 30% in the coming years.</p>
<h2>AI Agents Completing Work, Young People Struggling to Break Through</h2>
<p>McDermott stated that as more jobs are completed by AI agents, young people will face significant challenges in breaking through in the corporate environment. According to data from the New York Federal Reserve Bank, the unemployment rate for recent graduates is about 5.7% as of the end of 2025, while the underemployment rate has reached 42.5%, the highest level since 2020.</p>
<h2>Layoffs Across Industries for AI</h2>
<p>In fact, various industries are currently using new AI tools to cut costs and lay off employees. Last month, fintech company Block announced plans to cut nearly half of its workforce due to AI automation replacing more jobs. At the same time, software company Atlassian, which has seen its stock price drop by more than half this year due to concerns about AI impact, also announced a 10% layoff this week to support investments in AI.</p>
<p>Experts point out that unlike past technological revolutions, the AI wave is gradually eroding white-collar positions, including programming and marketing roles. Companies are enhancing productivity with fewer employees by reducing hiring.</p>
<p>In addition, several tech giant CEOs have also expressed their determination to lay off employees. Palantir CEO Alex Karp previously stated that his goal is to increase revenue tenfold while reducing the number of employees; Amazon CEO Andy Jassy also indicated last June that the company would use AI tools to reduce its workforce.</p>
<p>Related article: Meta reportedly plans to cut 20% of its workforce to offset the costs of AI facility investments.</p>
<h2>The AI Trend is Coming Faster Than Expected</h2>
<p>McDermott further revealed that ServiceNow's tools will help companies significantly reduce hiring costs. He pointed out that in the customer service sector, the company has eliminated 90% of the work scenarios that previously relied on human handling. This shift allows companies to maintain their workforce while still enhancing free cash flow and revenue. McDermott reiterated, &#34;I believe this trend is coming faster than people expect.&#34;</p>
<p>In fact, a report released earlier by Goldman Sachs economist Pierfrancesco Mei indicated that although the current impact of AI on industry unemployment is still moderate, related signs are clearly visible. Goldman Sachs predicts that due to AI replacing some positions, the unemployment rate in the U.S. will rise from the current 4.3% to 4.5% by the end of the year. If companies accelerate the adoption of AI, there is a risk that the unemployment rate could continue to rise, potentially leading to an additional increase of 0.3 percentage points this year.</p>
<h2>The Younger Generation Should Turn to Entrepreneurship</h2>
<p>In addition, a survey by the Harvard Business Review shows that 60% of companies are reducing staff or preparing to lay off employees due to the application of AI, while 29% of companies are scaling back recruitment. Former Medtronic CEO Bill George has also observed that entry-level positions in law firms, brokerage firms, and investment banks are rapidly decreasing.</p>
<p>George also advises the younger generation to turn to entrepreneurship and leverage AI to create new business models in the face of the AI wave, rather than merely seeking traditional positions, in order to remain competitive amid the changes.</p>
<p>Related article: OpenClaw lobster trend signals the era of digital employees, stirring up speculation in the stock market, but experts warn of risks: &#34;Excessive authorization can lead to arbitrary manipulation.&#34;</p>

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<p>ServiceNow CEO Bill McDermott warned that with the proliferation of AI, the unemployment rate for recent college graduates could soar to over 30% in the coming years. The application of AI presents significant challenges for young people in the workplace, particularly in white-collar positions such as programming and marketing. Various industries are laying off employees and reducing hiring through AI tools to enhance productivity. McDermott noted that ServiceNow's tools have helped companies eliminate 90% of manual work in customer service, significantly reducing hiring costs</p>

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AI agents are replacing fresh graduates in the workplace. ServiceNow CEO warns that the unemployment rate for graduates may soar to 30%