SUMMARY

In a PBS "Two Cents" episode hosted by Philip Olson and Julia Lorenz-Olson, a Federal Reserve study reveals high unemployment among computer science graduates amid AI and market shifts, challenging the "learn to code" mantra and highlighting humanities' value.

STATEMENTS

• A 2025 Federal Reserve Bank of New York study shows computer science and engineering majors facing the highest unemployment rates among recent graduates, surpassing humanities fields like art history and philosophy.
• The tech sector accounts for over 30% of U.S. equity market value, yet entry-level coding jobs are increasingly automated by AI tools like ChatGPT, reducing demand for new hires.
• Unemployment among recent college graduates has risen since 2009, predating widespread AI adoption, suggesting broader economic factors at play beyond technology.
• Oversaturation in computer science majors, combined with post-COVID interest rate hikes, has led to layoffs and a flooded job market, forcing graduates to apply to hundreds of positions.
• Liberal arts majors develop soft skills such as adaptability, critical thinking, and communication, which are increasingly valued in a rapidly changing economy.
• Studies indicate liberal arts graduates earn less initially but catch up in salary over time and enjoy broader career options, including law and business.
• Fields like construction services, civil engineering, and nursing show low unemployment and strong growth projections due to infrastructure needs and an aging population.
• Worker satisfaction often stems from passion rather than high pay or low unemployment, emphasizing the importance of fulfilling work.

IDEAS

• The "learn to code" push has backfired, creating an oversupply of tech graduates just as AI automates routine coding tasks, leaving entry-level positions scarce.
• Humanities degrees, long mocked as impractical, now offer better employment odds than computer science, flipping traditional career advice on its head.
• AI excels at entry-level work like basic coding, copywriting, and analysis, potentially reshaping career starts by eliminating on-the-job learning opportunities.
• Economic forces like rising interest rates post-COVID have dried up tech investments, turning a booming sector into one plagued by layoffs and shareholder-driven cuts.
• Soft skills from liberal arts—adaptability, critical thinking, and interpersonal communication—provide resilience in an economy where specific tech skills quickly obsolete.
• BlackRock executives advocate hiring history and English majors for their broad perspectives, valuing non-technical insights in finance and technology roles.
• Theater majors, like the hosts, leverage communication and psychological insights from humanities to excel in unrelated fields such as financial advising.
• The job market may self-correct as fewer students pursue computer science, reducing applicant pools and restoring attractiveness to the major.
• Healthcare and infrastructure sectors outpace tech in job growth, driven by demographic shifts like an aging population and housing shortages.
• Passion-driven careers may not guarantee high pay but correlate more strongly with long-term satisfaction than unemployment rates or salaries alone.

INSIGHTS

• AI's automation targets entry-level roles across industries, underscoring the need for education that builds versatile human skills over narrow technical ones.
• Oversaturation in popular majors like computer science reveals how hype-driven choices can lead to market imbalances, favoring adaptable generalists in volatile economies.
• Humanities foster enduring soft skills that enable career pivots, proving their long-term value in salary growth and diverse paths amid technological disruption.
• Economic cycles, not just AI, drive tech unemployment, highlighting the risks of chasing short-term trends without considering broader market dynamics.
• Valuing passion over immediate financial metrics promotes holistic flourishing, as well-rounded education supports both mental well-being and financial stability.
• Demographic and infrastructural demands ensure steady growth in non-tech fields like healthcare and engineering, offering reliable alternatives to volatile tech careers.

QUOTES

• "We have more and more conviction that we need people who majored in history, in English, and things that have nothing to do with finance or technology."
• "Part of this has to do with how fast the American economy changes. Rather than specializing in a very specific skillset, it might be wiser to master the so-called soft skills like adaptability, critical thinking, conflict mediation, and interpersonal communication."
• "Doing what you love may not have a set dollar value, but that doesn't mean it's not important."
• "Just know that someday you may have to pivot. That's why being well-rounded in your education and experiences is good for your mind and your pocketbook."
• "The liberal arts major asks, 'Do you want fries with that?'"

HABITS

• Pursue a well-rounded education that includes humanities to build adaptability and critical thinking for future career pivots.
• Develop strong communication and interpersonal skills through activities like theater to enhance professional versatility.
• Focus on passion in career choices to prioritize long-term satisfaction over immediate high salaries.
• Network extensively, as knowing the right people can be crucial for landing competitive tech jobs.
• Stay informed on labor market trends, such as AI impacts, to make proactive educational decisions.

FACTS

• The tech sector reached over 30% of total U.S. equity market value, surpassing all other sectors.
• Unemployment for recent computer science graduates exceeds that of art history, philosophy, and journalism majors per the 2025 Federal Reserve study.
• Entry-level unemployment trends among college graduates began rising in 2009, before AI's widespread adoption.
• Liberal arts graduates often see salaries catch up to STEM peers later in life, with access to diverse careers like law and management.
• Healthcare jobs are projected to grow much faster than average through the next decade, driven by an aging U.S. population.

REFERENCES

• Federal Reserve Bank of New York study on employment prospects for college majors (2025).
• BlackRock executive comments on valuing humanities majors in finance.
• Bureau of Labor Statistics projections for healthcare and infrastructure sectors.
• Studies showing long-term salary convergence for liberal arts graduates.

HOW TO APPLY

• Assess your interests and the evolving job market by reviewing Federal Reserve and BLS data to choose majors with balanced growth potential.
• Build soft skills through humanities courses or extracurriculars like theater to prepare for economic shifts and AI disruptions.
• Diversify your education by combining technical training with liberal arts for adaptability in a fast-changing economy.
• Network aggressively when entering competitive fields like tech, aiming to connect with professionals via internships or alumni events.
• Prioritize passion in career planning by exploring interdisciplinary paths that align with personal fulfillment and long-term satisfaction.

ONE-SENTENCE TAKEAWAY

Embrace well-rounded humanities education for resilient careers amid AI-driven tech unemployment.

RECOMMENDATIONS

• Opt for majors emphasizing soft skills like critical thinking to navigate rapid economic changes.
• Consider growing fields like nursing or civil engineering for stable, high-demand opportunities.
• Integrate humanities into any technical education to enhance adaptability and career longevity.
• Evaluate job satisfaction alongside salary when choosing paths, favoring passion-driven work.
• Monitor market trends and pivot education plans to avoid oversaturated fields like computer science.

MEMO

In an era dominated by the siren call of "learn to code," a startling 2025 Federal Reserve Bank of New York study has upended conventional wisdom. Computer science and engineering graduates, once heralded as future-proof, now face unemployment rates rivaling those in the humanities—fields like art history and philosophy that have long endured jokes about their practicality. Hosted by financial advisors Philip Olson and Julia Lorenz-Olson on PBS's Two Cents, the discussion probes this reversal, attributing it partly to artificial intelligence's prowess in automating entry-level coding, the very tasks that launch young careers. As tech giants like Microsoft and Google lean on AI for routine work, the entry gates to the industry—once wide open—have narrowed, leaving a generation of coders adrift.

Yet the plot thickens beyond AI's shadow. Economists point to deeper forces: an oversupply of computer science majors fueled by years of hype, colliding with post-COVID interest rate hikes that starved the sector of venture capital. Layoffs followed, not as AI scapegoats but as shareholder-pleasing cost cuts. Recent graduates describe a grueling job hunt—hundreds of applications, unpaid internships, or sheer luck in networking. Meanwhile, the tech sector, despite comprising over 30% of U.S. equity value, offers starting salaries that tantalize but positions too few to absorb the talent flood. This supply-demand mismatch suggests a potential market correction: fewer students in CS programs could eventually ease the pressure.

Humanities, it turns out, may hold hidden strengths. BlackRock executives have voiced a preference for history and English majors, prizing their broad perspectives in finance and tech roles. Soft skills—adaptability, critical thinking, communication—honed in liberal arts classrooms equip graduates for an economy in flux, where jobs vanish and emerge unpredictably. The hosts, theater majors turned advisors, credit their degrees with insights into human psychology that inform client guidance. Data backs this: while humanities starters earn less, their salaries often converge with STEM peers over time, opening doors to law, business, and beyond. Fields like nursing and civil engineering, meanwhile, boast low unemployment, fueled by America's aging population and infrastructure woes.

Ultimately, the episode urges a pivot from narrow specialization to well-rounded preparation. Passion, not just pay, drives fulfillment, and in a world of inevitable career shifts, versatility is the true currency. As AI reshapes labor, the lesson rings clear: bet on the human elements that algorithms can't replicate.