UMD Study Finds No Evidence of Declining Labor Demand, Especially for New Graduates
COLLEGE PARK, Md., April 17, 2026 /PRNewswire/ — At a time when headlines warn that artificial intelligence is displacing workers, a new white paper from the University of Maryland–LinkUp AI Maps Project presents a strikingly different picture: There is no empirical evidence that AI is reducing overall labor market demand — and it may be increasing opportunities for fresh graduates.
The report, “Tribal Tales vs Hard Data: What Comprehensive Job Postings Data Reveal About Impact of AI on Labor Market Demand,” analyzes 155 million U.S. job postings since 2018/Q1 and finds that narratives about widespread AI-driven job loss are not supported by data.
Key findings
- AI hiring is surging: AI job postings grew from just 0.28% of all postings in 2022 to 1.13% in 2025, reflecting rapid demand for technical AI talent.
- Overall labor demand remains strong: Total job postings remain above pre-pandemic levels despite recent normalization.
- No evidence of AI-driven job destruction: Economy-wide data show no correlation between increased AI adoption and declining job postings.
- Opportunities for new graduates are rising: Entry-level job postings increased to 12.6% of total postings in 2025, higher than at any point in the past eight years (excluding the post-pandemic hiring surge).
‘The Data Simply Don’t Support the Narrative’
“Much of the current discourse around AI and jobs is driven by anecdotes, small sample or non-representative surveys, and isolated cases,” says Anil K. Gupta, professor at the University of Maryland’s Robert H. Smith School of Business and co-lead of the project. “When you look at economy-wide data, a very different picture emerges. AI is not shrinking the labor market – it’s reshaping it.” Gupta adds: “If anything, AI may be tilting the playing field in favor of younger, less experienced workers. Our data show that demand for fresh graduates has not only held up — it has strengthened in the AI era.”
From ‘Tribal Tales’ to Data-Driven Reality
The report critiques what it calls “tribal narratives”— widely repeated but weakly substantiated claims that AI is broadly replacing human labor. Instead, it highlights several alternative explanations for recent layoffs, including post-pandemic over-hiring, corporate cost restructuring, and sector-specific adjustments.
A More Nuanced View of the AI Economy
The study also finds that:
- Sectors with the fastest growth in AI hiring often show stronger — not weaker — overall job demand
- AI adoption is positively associated with demand for entry-level talent at the sector level
- Even in software engineering – often cited as most vulnerable – demand for fresh graduates remains robust
About the Study
The findings are based on a near-comprehensive dataset capturing 100% of job postings on the career pages of almost all employers in the U.S. economy (totaling 155 million since 2018/Q1), offering one of the most complete real-time measures of labor demand available. The research was co-led by Professor Anil K. Gupta and conducted as part of the UMD-LinkUp AI Maps Project, in collaboration with the Outrigger Group.
Read the white paper, Tribal Tales vs Hard Data.
About the University of Maryland’s Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and flex MBA, executive MBA, online MBA, business master’s, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.
Media Contact
Greg Muraski
gmuraski@umd.edu
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SOURCE University of Maryland’s Robert H. Smith School of Business
