As the Class of 2026 prepares to enter the workforce this summer, they-like last year's graduates and those already in the job market-are facing what economists now call a "low hire, low fire" economy. Whether this is driven by AI or other economic factors remains hotly debated, but the causes are beside the point for new grads looking for jobs postgraduation in an economy marked by a pullback in early-career hiring.
It's not very encouraging. According to very recent research from Stanford's Digital Economy Lab, published in August of this year, companies that adopt AI at higher rates are hiring juniors 13% less. Another study from Harvard published in October of this year cites that early-career folks from 22-25 years old, in these same fields, are experiencing greater unemployment while senior hiring remains stable or even growing.
Landing your first job has never felt easy - but for today's college grads, the hunt has likely gotten worse. In a survey of 2,440 class of 2026 students, more than 60% said they felt pessimistic about their career prospects, according to Handshake's Workforce Outlook report. That's a 10% jump from two years ago. While grim, that outlook may reflect the reality of today's challenging entry-level job market.