In an uncertain job market, top economists offer advice for incoming NC college students

It’s move-in week for college students across North Carolina. And once students have gotten settled into their dorms, their attention will turn to getting the classes needed to fulfill their chosen major. But which career paths are a safe bet in 2026?

U.S. employers cut 23,000 jobs in July. Job creation for May and June was also revised downwards, showing a combined loss of 103,000 positions.

A report by outplacement and executive coaching firm Challenger, Gray & Christmas found artificial intelligence remains the top reason for job cuts, accounting for almost 11,000 of the announced cuts last month. It’s the fifth straight month AI has been the leading explanation that employers have provided for eliminating jobs.

“AI is shifting the labor market, it is not dismantling it,” writes Andy Challenger, chief revenue officer for Challenger, Gray & Christmas, in their latest report.

Technology, financial firms, and the government sector accounted for the most job losses in July.

Gerald Cohen, chief economist with the Kenan Institute of Private Enterprise, calls the latest employment data worrying.

Cohen said economists are actively debating whether AI is going to create massive job losses in certain fields – careers one would want to avoid – or if it will create new career pathways.

Careers projected to see major disruptions in the near future include marketing and public relations, customer service, technical writing, journalism and web development.

Cohen says ultimately, it may come down to how a person uses artificial intelligence to their advantage.

“If you’re a critical thinker, learn how to use AI and learn how to leverage it, [choose] whatever field that’s going to inspire you,” Cohen said in a call with reporters.

North Carolina State University economist Dr. Mike Walden said two or three years ago, he would absolutely have recommended a young person heading to college pursue a degree in technology. It’s a less safe bet these days.

“Now that’s up in the air because of AI,” said Walden. “AI is a technology that can replace people.”

Walden believes that while it’s unclear to what extent that may happen, AI is more likely to change certain jobs than to eliminate them.

“There’s a part of decision making that only humans can do,” Walden said.

Walden told NC Newsline the uncertainty AI creates may help promote social sciences.

“Social sciences are fields where you rely on human interaction, being able to assess other people, being able to work with other people,” explained Walden. “That’s actually something that I would tell students going to college, and say, certainly look at technology, but don’t forget the social sciences. I think that may very well have a rebirth in the new economy that has AI.”

Walden said skilled trades are another area where AI can’t easily replace humans.

“I’m also a big promoter of skilled fields that maybe require just community college,” said Walden. “We need entrepreneurs, we need plumbers, we need electricians. That’s not what a lot of people think about when they go to college, but prospects for those jobs, I think, are very, very good.”

The good, the bad and the unknown: The future of AI in North Carolina

For those newly graduated or early career professionals who are still struggling to land a job, Cohen says it may not be AI’s fault.

“One of the reasons why the unemployment rate for folks with bachelor’s has been rising faster than the unemployment rate with folks without a bachelor’s degree is not because of AI, but because of the impact of remote work and the fact that it’s harder to gain [certain] skills from remote work, and it’s harder to learn from other workers when you’re remote,” said Cohen.

Cohen said he’s a big proponent of flexibility, but the truth is many employers are still grappling with managing and growing employees who aren’t on-site as the workplace continues to change.