The Class of 2026 might be walking into a deep unemployment crisis, according to recent employer surveys. More than half of 183 employers polled by the National Association of Colleges and Employers (NACE) described the job market for next spring’s college graduates as “poor” or “fair”, which is the most negative outlook since the height of the pandemic. 

The study reveals that hiring plans for new graduates are expected to grow by only 1.6 per cent, a significant drop from previous years, Wall Street Journal reports. 

Companies across sectors, including large names like Amazon, Inc. and Verizon Communications Inc, have announced thousands of layoffs or hiring freezes. For graduates, this means competing not only with their peers but also with experienced workers displaced from the labour market. 

One key factor behind this shift is the increasing role of artificial intelligence (AI) and automation in entry-level tasks. Employers say fewer roles traditionally held by fresh graduates are available, as companies favour candidates with experience or specialised skills. 

The job-search platform Handshake Inc reports a 16 per cent year-on-year decline in full-time job postings as of August 2025, while applications per job have surged by 26 per cent. More than 60 per cent of graduates in the Class of 2026 indicated that they felt pessimistic about their career prospects.

Despite these challenges, there is hope for a resilient cohort. The Class of 2026 could be one of the most adaptable groups in decades, forced to innovate, diversify talents, and trained to navigate volatility from the start of their careers.