"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."
"The good news is that, despite the many clickbait headlines to the contrary, employers continue to say that colleges are doing a good job building these important skills. But we still have more work to do in closing the preparation gaps in these key skill sets that employers highly value. The question is: How do we provide all students with the"
Graduates entering the workforce in 2026 face a "low hire, low fire" environment with reduced early-career hiring. Debate about AI or other causes is ongoing but secondary for job-seeking graduates. Employers emphasize the need for diverse experiential opportunities and agility to remain competitive in a rapidly changing labor market. Employer responses collected in 2025 from 1,030 firms show strong agreement on the importance of real-world application (95 percent) and teamwork (95 percent), yet lower confidence that students are prepared to apply those skills (78 percent and 82 percent, respectively). Colleges are credited with building skills, but measurable preparation gaps remain.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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