Is Remote Work Making It Harder for Young Workers to Start Their Careers—and Eventually Buy a Home?

For years, remote work has been celebrated as one of the biggest workplace transformations to emerge from the pandemic. Millions of workers gained flexibility, shorter commutes, and a better work-life balance. But a growing body of research suggests there may be an unintended consequence: younger workers are having a harder time getting hired and developing their careers.

New research from the Federal Reserve Bank of New York indicates that remote work may be contributing to rising unemployment among recent college graduates, particularly in white-collar professions where remote and hybrid work have become common. While the shift has benefited many experienced professionals, economists increasingly believe it may be creating new barriers for workers trying to get their foot in the door.

Why Employers May Be Hesitant to Hire Entry-Level Workers

The challenge isn't necessarily a lack of available jobs. Instead, researchers suggest that companies operating in remote environments may be less willing to hire workers who require significant training and mentorship.

In a traditional office setting, new employees can learn through observation, informal conversations, and quick interactions with managers and coworkers. Questions can be answered in real time, and feedback often happens naturally throughout the workday.

Those opportunities can be harder to replicate in a remote environment.

A recent New York Fed study found that unemployment among college graduates under age 29 has increased, while unemployment among older college graduates has remained relatively stable. The disparity is concentrated in occupations that can be performed remotely, such as software development, finance, and other professional services roles.

Researchers estimate that remote work could account for a significant share of the increase in youth unemployment since the pandemic.

Separate research examining software engineers found that younger workers benefit disproportionately from in-person feedback and mentoring. When teams worked together in person, feedback on coding work increased substantially, helping improve performance and accelerate professional development.

For employers, this creates a practical challenge. Training inexperienced workers often requires more time and supervision than managing seasoned professionals. In a remote environment, some companies may decide it is more efficient to hire experienced candidates who can contribute immediately rather than invest in developing entry-level talent.

Research from economists at the London School of Economics and the University of Oxford found that entry-level hiring has declined across several English-speaking countries in recent years, while hiring of more experienced workers has increased. Companies that embraced remote and hybrid work early in the pandemic were more likely to increase hiring for senior positions while reducing opportunities for entry-level workers.

Why This Matters Beyond the Workplace

Career development is about more than earning promotions. For many young adults, the first years of employment are also the foundation for major financial milestones.

Stable employment helps workers build savings, establish credit histories, qualify for mortgages, and accumulate funds for down payments and closing costs. Delays in securing a first professional job can postpone many of those financial goals.

The New York Fed's findings do not suggest that young Americans are abandoning homeownership aspirations. However, if recent graduates spend longer searching for jobs or struggle to gain experience early in their careers, it may take longer to reach the financial stability that often precedes purchasing a home.

For industries tied to housing—including insurance, lending, real estate, and construction—these workforce trends are worth watching. Today's entry-level workers represent tomorrow's first-time homebuyers, and the timing of their career growth can influence when they enter the housing market.

A Complex Issue Still Being Studied

Researchers caution that remote work is likely only one factor affecting hiring trends. Economic uncertainty, changing business needs, higher interest rates, and technological advancements are also influencing employer decisions.

Still, multiple studies now point to a consistent pattern: the challenges facing young workers are most pronounced in occupations where remote work is common and where mentorship and on-the-job training have traditionally played an important role.

Remote work has delivered undeniable benefits for many employees and organizations. Yet as companies continue to refine their workplace strategies, economists are increasingly examining whether those same arrangements may be making it more difficult for the next generation of professionals to launch successful careers—and eventually achieve long-term financial goals such as homeownership.

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Sources: Federal Reserve Bank of New York, Remote Work Leaves Younger Workers Sidelined (2026), London School of Economics and University of Oxford, Gallup, U.S. Bureau of Labor Statistics, National Association of Realtors, Fortune