ZipRecruiter Finds Grad Job Market Improving Despite Fears That AI Is Eliminating Jobs

New research shows the share of grads who landed a job within three months of graduation rose from 63% to 77% year over year, even as concerns about AI and entry-level job scarcity grow

SANTA MONICA, Calif.--(BUSINESS WIRE)--ZipRecruiter® (NYSE: ZIP), a leading online employment marketplace, today released its annual grad report, Building a New Path: The 2026 Graduate Report. Based on a survey of both rising and recent college graduates, the report reveals that the Class of 2026 faces steeper competition than in years past: more candidates are seeking entry-level roles, but fewer of these jobs are available.

Despite these challenging conditions, outcomes have improved: the share of recent grads landing a role within three months of graduation rose from 63% to 77%, reflecting the work they’re putting in to break into the labor market. This improvement comes despite anxiety around AI affecting the entry-level market: 47% of recent graduates report that AI has already impacted hiring in their industries, and 51% of rising grads fear AI will lead to fewer entry-level positions.

“The old model was: graduate, find an entry-level job, climb from there. What we're seeing now is something less linear, yet their outcomes are actually improving,” said Nicole Bachaud, Labor Economist at ZipRecruiter. “Grads are piecing together experience through internships, side work, stepping-stone roles, and even starting their own ventures. With fewer entry-level roles available, their path looks different, but many are finding their way.”

Key findings from the report include:

• Work experience is the strongest predictor of success in getting hired. Graduates who worked during school land jobs at twice the rate of those who didn't (82% vs. 41%).
• Internships and apprenticeships are some of the clearest on-ramps into the workforce. 40% of recent grads completed internships, and they were more likely to land an offer before graduation than their peers who didn’t.
• Grads are turning to entrepreneurship and non-corporate roles when traditional post-college roles aren’t available. The vast majority (73%) are actively considering gig work, freelance work, and skilled trades. 38% are considering starting their own business.
• Despite working harder and securing roles faster, only 1 in 4 grads is on their dream career path. 20% of employed grads say they are overqualified for their current position, and 18% intentionally applied below their level just to get a foothold.
• Grads fear AI is limiting entry-level jobs, and most schools aren't preparing them for it. Only 29% of rising grads and 23% of recent grads say their school provided extensive AI training for professional use.

To view the full report, including additional data insights and methodology, visit: ziprecruiter-research.org/annual-grad-report.

About ZipRecruiter

ZipRecruiter® (NYSE:ZIP) is a leading online employment marketplace that actively connects people to their next great opportunity. ZipRecruiter’s powerful matching technology improves the job search experience for job seekers and helps businesses of all sizes find and hire the right candidates quickly. ZipRecruiter has been the #1 rated job search app on iOS & Android for the past nine years¹ and is rated the #1 job site by G2.² For more information, visit www.ziprecruiter.com.

¹ Based on job seeker app ratings, during the period of January 2017 to January 2026 from AppFollow for ZipRecruiter, Glassdoor, Indeed, LinkedIn, and Monster.

² Based on G2 satisfaction ratings in N. America as of January 12, 2026.