U.S. Unemployment Rate Climbs to Near 4-Year High Amid AI Disruption Concerns
The U.S. unemployment rate edged up to 4.4% in September, marking the highest level since October 2021, according to the Bureau of Labor Statistics. Despite the addition of 119,000 nonfarm payrolls—well above estimates—the gradual rise since April 2023 has stoked fears over AI's role in displacing entry-level jobs. Trade policy uncertainties under the TRUMP administration have further exacerbated labor market tensions.
College graduates face mounting challenges, with their unemployment rate climbing to 4.8% as of June 2025. "Knowledge workers are no longer insulated," noted Cornell economist Evan Riehl, citing AI's encroachment on traditional white-collar tasks. The St. Louis Fed's muted response suggests policymakers are grappling with structural shifts in employment dynamics.
