Workers with college degrees think the job market is awful, a recent Gallup analysis finds.

Why it matters: The unemployment rate is still fairly low, but hiring has slowed a lot — especially for white-collar workers. Nowhere is that gap clearer than in San Francisco, where the AI boom is driving fierce demand for a small pool of top-tier talent, while much of the broader tech job market continues to struggle.

• Deteriorating worker sentiment can signal that things are about to get much worse.

What they're saying: "Most educated people I know are pretty freaked about what AI means for their jobs," says Martha Gimbel, executive director and cofounder of the Budget Lab at Yale.

• "We can argue about whether or not that's going to happen, but that's not what fear is about."

The big picture: Labor market stress is just one of many looming known unknowns in a chaotic moment for the economy and markets.

• Oil prices are climbing, a private credit tantrum is in play, and AI disruption is everywhere.

Zoom in: In San Francisco, frontier and generative AI firms are hiring aggressively, but many software and tech jobs are shrinking as companies try to do more with fewer people or switch to automation.

• AI is changing hiring patterns and the business model for software companies in Silicon Valley, particularly for those that rely on per-seat pricing — which charges customers per employee, the New York Times reports.
• San Francisco has lost roughly 30,000 tech jobs in the past three years, latest U.S. Census Bureau data shows.

By the numbers: In separate polling of U.S. adults from Gallup, conducted from Jan. 2-17, just 27% of college grads said now is a good time to find a quality job, compared with 44% of those who didn't graduate from college.

• That's the widest gap on record since 2001.
• Until 2024, those with more advanced degrees were more optimistic.

Between the lines: Aside from the pandemic, hiring has fallen to its lowest level since 2013, per federal data.

• Sentiment among college-educated workers about the job market is at its lowest since that year as well.

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Three distinct camps are forming around AI: power users, doubters and resisters.

Why it matters: AI isn't just advancing — it's fragmenting how people see the world.

The big picture: The disconnect is showing up everywhere, from job-loss fears to data center protests to real-world violence.

• Doubters see AI as glitchy chatbots and viral fails. They aren't using its full capabilities.
• Power users run AI agents around the clock, trading tips on how to automate work and decision-making.
• Resisters understand AI, think they know where it's headed and want no part of it.

💭 Your thought bubble: We want to know which camp you fall into.

• Is AI a regular part of your everyday life?
• Do you use it infrequently?
• Or have you sworn it off entirely?

📨 Hit reply or click here to let us know. We may use your response in an upcoming story.

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❌ Former state Controller Betty Yee dropped out of the governor's race yesterday. (SF Chronicle)

A person was found dead from what authorities believe was a possible overdose Sunday night near the I-80 on-ramp shortly after the freeway reopened from weekend roadwork. (SF Chronicle)

🏠 The Mission apartment at 2977A 21st Street where OpenAI was created hit the market for $1.5 million. (SFGATE)

💰 A newly launched $25 million fund will offer grants of up to $500,000 and sub-market-rate loans of up to $1 million to help businesses in vacant storefronts around Union Square and the Moscone Center. (SF Standard)

Nearly half of college students have considered changing their major because of AI.

The big picture: College graduates are entering a job market that's been rocked by a massive tech evolution, reshaping career prospects for entry-level workers, a new survey from Lumina Foundation and Gallup shows.

By the numbers: Among currently enrolled college students, 14% have thought "a great deal" and 33% have thought "a fair amount" about changing their major or field of study because of how AI may affect the job market, the polling found.

• 16% of students have changed their major because of the effect AI might have, a trend that is higher among men (21%) than women (12%) and in vocational (26%) and tech (25%) majors.

What they're saying: Christina Eid, an American University senior majoring in business administration, runs an annual survey on students' interactions with AI.

• In 2024, 12% of business undergrad and grad students said potential employers had asked them about their ability to use AI in the workplace.
• In 2025, that number rose to 30%. In all of her own recent job interviews, Eid said she's been asked about her AI skills.

Go deeper

Cryptic AI ads are commonplace nowadays across San Francisco and the one above is no exception — vague on what's being advertised, but clear in trying to provoke some type of reaction.

💭 My thought bubble: I can't tell if this is yet another attempt at using rage bait as a marketing tactic or a sincere effort to present an opinion as if it's already a widely-shared view.

• Reducing San Francisco to a monoculture of tech ignores what actually makes the city worth liking and, for many, worth staying.
• There's also a certain confidence in using Cow Hollow (which by the way is just the Marina, people) as a proxy for the entire city — like reviewing a novel after reading one chapter.

📩 What's your take — do you agree? Hit reply to let us know.