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New Grads Join Worst Entry-Level Job Market in Years

Slashdot.org - Tue, 06/10/2025 - 09:46
The Class of 2025 is encountering the worst entry-level job market in years with unemployment among recent degree-holders aged 22 to 27 reaching 5.8% this spring -- the highest level in approximately four years and well above the national average. According to Federal Reserve Bank of New York data, 85% of the unemployment rate increase since mid-2023 stems from new labor market entrants struggling to find work. Corporate hiring freezes implemented under threats of President Trump's tariffs, combined with AI replacing traditional entry-level positions, have severely constrained opportunities for new graduates. More than 60% of executives surveyed on LinkedIn indicate that AI will eventually assume tasks currently assigned to entry-level employees, particularly mundane and manual roles. The impact varies significantly by major, with computer engineering graduates -- once highly sought-after -- now facing a 7.5% unemployment rate, the third-highest among recent graduates. Employment in computer science and mathematical jobs for those under 27 has dropped 8% since 2022, even as it grew 0.8% for older workers.

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OpenAI Taps Google in Unprecedented Cloud Deal Despite AI Rivalry

Slashdot.org - Tue, 06/10/2025 - 09:00
OpenAI plans to add Alphabet's Google cloud service to meet its growing needs for computing capacity, Reuters reported Tuesday, marking a surprising collaboration between two prominent competitors in the AI race. From the report: The deal, which has been under discussion for a few months, was finalized in May, one of the sources added. It underscores how massive computing demands to train and deploy AI models are reshaping the competitive dynamics in AI, and marks OpenAI's latest move to diversify its compute sources beyond its major supporter Microsoft, including its high-profile Stargate data center project. It is a win for Google's cloud unit, which will supply additional computing capacity to OpenAI's existing infrastructure for training and running its AI models, sources said, who requested anonymity to discuss private matters. The move also comes as OpenAI's ChatGPT poses the biggest threat to Google's dominant search business in years, with Google executives recently saying that the AI race may not be winner-take-all.

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