New York Federal Reserve reports 5.6% unemployment for recent grads in 2026

Indeed: Indeed is a leading online job search platform that operates the Hiring Lab to analyze U.S. labor market trends. Economist Sneha Puri recently linked the difficult job environment for young college-educated workers to AI investments, a post-pandemic hiring slowdown, and reduced internship opportunities. Coinbase: Coinbase is a prominent cryptocurrency exchange platform providing trading and related financial services. It recently announced workforce reductions, targeting middle managers, to capitalize on AI-driven efficiencies. LinkedIn: LinkedIn is a professional networking site that uses its Economic Graph to track job trends and publish reports like the Grad's Guide. Head of economics Kory Kantenga noted that hiring in sectors popular with graduates such as technology, finance, and professional services remains below pre-pandemic levels due to economic uncertainty. Handshake: Handshake is a career network platform connecting college students and recent graduates with employers for jobs and internships. Its reports indicate a sharp rise in generative AI skill mentions in full-time job and internship descriptions. Sneha Puri: Sneha Puri is an economist at Indeed's Hiring Lab, specializing in U.S. labor market research. She recently described the elevated unemployment among new graduates as stemming from AI shifts, hangover from pandemic hiring booms, and disadvantages in experience for young entrants. Kory Kantenga: Kory Kantenga, Ph.D., serves as Head of Economics for the Americas at LinkedIn, providing insights into global labor trends. He recently attributed graduate job struggles to slowed hiring from higher interest rates, low turnover among experienced staff, and economic uncertainty in key industries. New York Federal Reserve: The Federal Reserve Bank of New York is one of twelve regional banks in the U.S. Federal Reserve System, responsible for implementing monetary policy and conducting economic research on labor markets and financial stability. Its recent analysis reveals ongoing challenges in the job market for recent college graduates aged 22 to 27 at the start of 2026. AI Impact: AI tools are now handling entry-level tasks such as research, drafting, and coordination, contributing to reduced hiring of new graduates. Emerging Jobs: Fastest-growing roles for recent college graduates include AI engineer, machine learning engineer, and marketing coordinator, particularly in tech. Hiring Trends: Entry-level hiring has declined amid economic uncertainty, with sectors like tech and finance stabilizing but still below prior peaks.