The Job Outlook for the College Class of 2026 [Updated for 2026]

by | Feb 16, 2026

How will the Class of 2026 grads fare in this job market?

 

Challenges

Opportunties

Recommendations

 

We talk with parents, students, and employers every day, and we carefully track the data so our community knows what is really happening out there. I am also a mom of a 2026 college grad, so I’m watching this closely with you.

Challenges: 

  • Employers project just a 1.6% increase in hiring for the Class of 2026. Forty-five percent of employers describe the job market for new grads as only “fair” (NACE).
  • Recent grad unemployment rose to 5.7% in Q4 2025, vs 4% nationally.
  • 4 in 10 grads are underemployed, working in jobs that do not require a degree (NY Fed).
  • People are not leaving their jobs, also known as “job hugging”, which means fewer openings for new grads. 
  • Entry-level roles are being restructured or eliminated at companies adopting AI, and many employers are hesitant to hire into positions that AI may eventually handle.
  • 8.2 million students wanted to intern last year, but only 50% participated. The supply of internships in the U.S. isn’t keeping pace with demand.
  • The average time to land a job has increased to 6 months from 5.5 months in 2025.
  • A significant disconnect persists between employers’ expectations and college grads’ workplace readiness.

Opportunities: 

Before you panic, here is the good news.

  • 60% of employers will maintain hiring, and 25% plan to increase, driven by succession planning and growth. They have not given up on new grads.
  • Starting salaries are rising across nearly every category. Computer science leads at $81,535 (up 6.9%), engineering at $81,198 (up 3.1%). No employers plan to decrease salaries.
  • Skills-based hiring is the new normal. 70% of employers now focus on demonstrated skills over GPA. 
  • Growth sectors are actively hiring: IT, healthcare, cybersecurity, cloud, data analytics, and finance.
  • AI is projected to create 11 million new jobs. 
  • The president of Anthropic, the company that builds Claude AI, shared that people skills are the competitive edge.
  • Employers still prioritize communication, critical thinking, adaptability, and ethical judgment. 
  • When early candidates use targeted networking, they achieve favorable results in advancing in the recruiting process.

Recommendations 

The only guarantee for 2026 is constant change. With uncertainty, the only thing one can control is their actions. How one prepares and presents themselves is critical for success in the job search journey.

Grads need to differentiate themselves from those with similar degrees and resumes. They do this by defining their value to the employers and showing they can solve problems for the company.

Being prepared is key. Understanding the goals and objectives of a company (which can easily be researched), combined with interview practice, can help make candidates stand out from their peers and progress in the hiring process.

Grads should be AI fluent. Expert coding is not required, but students who learn how to use AI while leveraging their “human” skills are the ones that employers want.

And finally, persistence and perseverance are necessary to endure a challenging job market. Students who continually follow up to show interest and persist in getting a meeting with a contact will separate themselves from the rest.

As you navigate these continued changes, Next Great Step is here to support you and your family in navigating this process. Want to learn more about how we help students and grads land their internship or first job? 

Let’s Talk or Call us today at 973-577-6161.

Or get the Amazon #1 Best Seller, The Next Great Step: The Parents’ Guide to Launching Your New Grad into a Career