Jerome Powell says that generation Z without technological skills is crushed in this economy

Speaking in the Rhode Island this week during an event organized by the Greater Providence Chamber of Commerce, Powell described what he called an unusual economy “with low rental and low fire”. Companies do not expand the payroll, but they do not reduce the staff in large numbers either. Instead, many stop new hires while they are waiting to see how prices, immigration policy and other changes are taking place.

“We see all the data – it has become difficult for people entering the active population to be hired,” said Powell.

However, he stressed that the market is not difficult for everyone. If you leave school with technological skills, everything will be well – even “great”.

“If you don’t have these skills, however, you have more and more left with less attractive job options,” said Powell.

A education gap

Powell linked the problem to a set in the American education level. For a large part of the 20th century, more Americans graduated from high school and college, which gives them the opportunity to adapt to new technologies. But this progress slowed down in the 1970s, even if the digital economy accelerated.

“I am struck by the way in which the level of American education is somehow started,” said Powell.

He cited the work of economists from Harvard Claudia Goldin and Lawrence Katz, whose book The race between education and technology Maintains that inequality widens when schooling does not follow the pace of innovation. He said technological change, when associated with education has increased productivity and income since the industrial revolution.

The Fed chair stressed that for decades, American workers have been able to set up each new technological wave because the country widens access to education.

“The United States was the first country to have blind gender secondary education,” said Powell. “The United States had a rapid technological innovation for a century, and also a decrease in inequalities, because people came out and their educational capacity … gave them the ability to benefit from evolution technology.”

This dynamic has fallen down, he suggested, leaving more vulnerable graduates of today.

AI economy

Investment in investment in artificial intelligence only compelled the gap. “The economy (is) growing, but not fast … except in the AI ​​region to be built, which goes very strongly (in) many parts of the country,” said Powell.

This created a high demand for skills linked to AI while leaving other areas of hiring in a standstill, a reality that Powell stressed that the Fed had little capacity to change.

“Our tools work on demand-depending on interest rates and higher interest rates,” he said. When there are “structural changes” to the economy, there is not much that the Fed can do.

“We cannot repair the education system,” he said. “It is for legislators and the private sector. But that matters a lot for the future of our economy. ”

Global Forum fortune returns on October 26 to 27, 2025 in Riyadh. CEOs and world leaders will meet for a dynamic event only invitation that shapes the future of business. Request an invitation.