Will AI supercharge the economy? Will the data centers powering it bring prosperity and provide paying jobs to the communities they’re built in?
Probably not. New research shows that rapid rise of AI has instead coincided with “unusually high levels” of unemployment among college graduates in Texas, the Financial Times reports. Texas, crucially, is the state with the most data center under construction.
Researchers at the Federal Reserve Bank in Dallas found that job postings in the state had dramatically fallen for AI-exposed fields since the release of ChatGPT, disproportionately affecting college graduates. By the first quarter of 2025, postings plummeted by 8 percent compared to jobs that were deemed less exposed to AI, it also found.
“These dynamics suggest that recent college graduates, whose unemployment rate rose to unusually high levels during this period of rapid [generative AI] adoption, are where the effects of GenAI on employment and earnings are likely to first appear,” the researchers wrote in the analysis, as quoted by the FT.
