Class of 2026 faces tough job market and AI concerns as graduation season approaches

The Class of 2026 is entering a tough job market as graduation season approaches, with unemployment for recent graduates hitting a four-year high of 5.7% in late 2023. Junior-level job postings dropped by 7% last year, while the share of graduates creating online profiles on Indeed nearly doubled to 19% in 2025. Laura Ullrich, Director of Economic Research at Indeed, described the labor environment as ‘low-hire, low-fire,’ indicating minimal improvement since the Class of 2025 faced similar struggles. Artificial intelligence is adding to graduates’ anxieties, with nearly 9 in 10 worried AI will replace entry-level roles. Keith Spencer, a career expert at Resume Now, noted that while companies aren’t cutting jobs outright, they are ‘hitting the brakes’ on hiring due to economic uncertainty. Only 1 in 3 graduates feel prepared to use AI in the workplace, according to career experts. Some students are pivoting to fields perceived as more resistant to automation, such as trades. Chris Stone, a community college student learning welding, said programs like his aim to produce skilled workers for stable roles. Vicki Salemi, a career expert at Monster, highlighted frontline jobs like mechanic, electrician, plumber, and nurse as more ‘AI-proof’ options for concerned job seekers. Despite fears, nearly 40% of graduates are using AI tools to assist in their job searches. The dual role of AI—both as a threat to employment and a tool for career advancement—reflects the shifting dynamics of the modern workforce. Experts emphasize adaptability as graduates navigate an economy where traditional paths are less certain than ever.