A stark warning about the near-term future of work came from ServiceNow CEO Bill McDermott this week. He predicts that widespread adoption of AI agents could send unemployment among new college graduates soaring above 30% within a few years. The current rate for recent graduates, according to New York Fed data from late 2025, sits at 5.7%, with underemployment at a troubling 42.5%. McDermott's concern centers on automation's direct threat to entry-level roles. "So much of the work is going to be done by agents," he told CNBC. "It's going to be challenging for young people to differentiate themselves." This shift is already in motion. Companies like Block and Atlassian have announced significant layoffs, citing AI's ability to automate tasks. The pattern extends beyond cost-cutting. Palantir's Alex Karp has spoken of dramatically increasing revenue while reducing staff, and Amazon's Andy Jassy outlined plans to shrink corporate roles with AI. Unlike past technological shifts, this wave is rapidly affecting white-collar professions in coding, marketing, and customer service. McDermott notes his own company's software has already automated 90% of the human-led use cases in some service areas. The implication is clear: businesses are preparing to maintain growth and cash flow with smaller, more productive teams powered by intelligent software. "I do think it's coming quicker than people anticipate," McDermott concluded. For a generation just entering the workforce, the timeline for adaptation may be shorter than anyone hoped.

Source: CNBC