This is an underappreciated point. The economy would likely be in freefall without AI.

Yes, things look bleak for current college grads. The bitter pill to swallow is that they began college in the boom times of 2021-22, and they saw the college grads of those years walking straight off campus into high-paying jobs which don’t exist anymore. They only existed because of the obscene gobs of money whizzing around the economy post-COVID. Whether the shrinkage is due in part or in whole to AI is in the eye of the beholder. But if we had fallen into a broad-based recession, the numbers would look a lot bleaker. Plenty of companies that could automate away entry level positions with current tech haven’t done so, whether due to organizational inertia or ignorance or whatever. That organizational inertia would’ve been much more easily overcome by a market collapse.