The article challenges the belief that ChatGPT directly caused a decline in entry-level jobs, showing evidence that the drop began before its launch. A new paper suggests that rising interest rates, rather than AI, are a more likely cause for the job market shift, particularly in sectors sensitive to economic changes.

Federal Reserve Chair Jerome Powell indicated that the central bank may need to consider cutting interest rates due to rising risks in the job market, while still acknowledging ongoing inflation concerns. His comments have led investors to anticipate a quarter-point rate cut at the upcoming September meeting, shifting previous forecasts for a later action.