Texas College Grads in AI-Exposed Majors Face Pay, Job Cuts

Recent graduates in technical fields face new headwinds

College graduates in Texas who majored in computer science, computer engineering, and languages are experiencing measurable setbacks in the job market since generative AI tools became widely available, according to new research from the Federal Reserve Bank of Dallas.

The study found that graduates from AI-exposed majors experienced a 1.7 percent decline in job placement compared to peers in less-exposed fields since ChatGPT launched in 2022. Among those who secured employment, earnings dropped approximately five percent relative to graduates from majors the research classified as less vulnerable to AI disruption.

Nursing, education, and psychology were identified as fields with lower AI exposure in the Dallas Fed analysis.

Universities pivot to durable skills training

Higher education institutions are responding by emphasizing what Dr. Amy Hodges of UT Arlington calls "durable skills" — capabilities that complement rather than compete with AI systems.

"We've been teaching these kinds of durable skills for a long time," said Hodges, who works in communication, social sciences, and humanities. "These sorts of durable skills of working with AI, complementing what it can do and adding two additional levels of oversight, responsibility, ethics. Those kinds of things are the things I think in higher education and especially in social sciences, humanities fields that we're really working on these days."

Some Texas universities now offer courses specifically designed to build AI literacy, including instruction on AI model design and deployment, according to the Dallas Fed report.

Employers seek more than technical expertise

The research arrives as employers and policymakers grapple with defining workforce readiness in an AI-augmented economy. During a Texas Senate Economic Development Committee hearing, Senator Angela Paxton highlighted employer concerns that extend beyond technical competencies.

"As I've talked to employers in my district, they're one of the things they're dealing with, with new employees are the things that maybe you used to learn in your family," Paxton said. "Like, if you're going to be late to work, you're supposed to call. If you're going to take a day off, you actually have to ask permission. You can't just do it."

The comments suggest workforce preparation now requires attention to workplace culture and professional norms alongside technical training.

Why it matters

This research provides the first quantifiable evidence that generative AI is already reshaping entry-level labor markets in measurable ways. For universities, the findings suggest that even technical programs may need to emphasize human judgment, ethics, and interpersonal skills that AI cannot replicate. For students choosing majors, the data indicates that proximity to AI capabilities — once considered a career advantage — now carries near-term employment risk.

The findings were first reported by NBC DFW, which noted that the full Dallas Fed report is available on the bank's website.