Artificial intelligence is now a core component of hiring, with AI-powered screening tools filtering applications before they reach human reviewers. The Federal Reserve Bank of New York reported that as of June 2026, the unemployment rate for college graduates aged 22 to 27 stood at 5.7%, above the national average, while 42% of recent graduates were working in jobs that do not require a bachelor's degree, up from 33.7% for all graduates.
Recruiters are accelerating this shift: LinkedIn research indicated that 66% of recruiters planned to increase AI use for pre-screening interviews at the start of 2026, and 81% of job seekers said they had already used or intended to use AI in their search. This automation moves the earliest stages of the job hunt into algorithmic systems, reducing direct human contact.
Despite concerns that AI could eliminate entry-level roles, the NY Fed found that the overall slowdown in hiring is not primarily driven by AI. Employers surveyed said they intend to incorporate AI mainly through retraining programs, suggesting limited immediate impact on hiring volumes for junior positions.
Students are adapting by tailoring resumes to match AI-focused job descriptions and highlighting concrete AI experience. Handshake reported that seniors in 2026 listed AI skills on their resumes at twice the rate of the class of 2022, with 74% of those mentions tied to real-world projects rather than coursework, indicating a shift toward demonstrable capability.
Employer demand for AI competence is rising. The National Association of Colleges + Employers (NACE) noted that AI skills appeared in 16.5% of spring job postings, up from 10.5% in the previous fall, and 28% of employers said they were seeking early-career talent capable of using AI in daily work.
Student attitudes remain mixed. NACE’s 2026 Student Survey showed that roughly one-third of graduating seniors believed AI skills would be of little importance to their future careers, and over half reported they were not actively building AI skills or using AI in their job search. NACE president Shawn VanDerziel warned that “Employers are increasingly asking graduates to be ready for AI.”
At Seton Hall, students described the job hunt as impersonal and discouraging. One senior received only two interviews after submitting 50 applications, while another applied to 150 positions without securing an interview, underscoring the difficulty of breaking through algorithmic filters and the desire for meaningful human feedback.
Broader labor-market data suggest that firms adopting AI faster also hire more quickly, yet they tend to prioritize senior-level roles. Revelio Labs founder Evan Sohn explained that this dynamic makes it harder for entry-level candidates to gain traction, as AI-driven hiring processes favor experienced workers over recent graduates.