A quarter of employers said they plan to increase the number of hires, primarily citing a commitment to succession planning and the talent pipeline.
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Forty-five percent of employers consider the job market to be “fair,” and they are projecting a 1.6 percent year-over-year increase in hiring for the Class of 2026, according to a new report from the National Association of Colleges and Employers.
The last time a plurality of employers gave the job market a “fair” rating was in 2021, when hiring projections were also flat. During the four interim years, most employers rated the job market as “good” or “very good,” the report shows.
About 60 percent of the 183 employers NACE polled for the 2026 Job Outlook Survey said they are planning to keep the number of people they hire stable next year. A quarter of employers said they plan to increase the number of hires, primarily citing a commitment to succession planning and the talent pipeline, as well as company growth, as key reasons. The top five industries for projected hiring growth are miscellaneous professional services; engineering services; construction; finance, insurance and real estate; and management consulting.
About 14 percent of employers said they plan to decrease the number of people they hire next year, citing reductions in business needs and projects, an uncertain economy and budget cuts. These employers are primarily concentrated in the chemical pharmaceutical manufacturing, transportation, wholesale trade, food and beverage manufacturing, and miscellaneous manufacturing industries.
NACE surveyed employers between Aug. 7 and Sept. 22 of this year for their thoughts on the job market, hiring trends and salaries. About 40 percent of employers plan to increase salaries for bachelor’s degree holders in 2026, and 28.3 percent will do the same for master’s degree holders. No employers reported plans to decrease salaries for either group next year, the report states.
Skills-based hiring remains popular—69.5 percent of employers reported they use the approach. Asked how students can best prepare for a skills-based hiring process, employers primarily said applicants should “prepare for interviews that demonstrate their skills,” “participate in experiential learning or work during college” and “translate college coursework into a skills language.”
Meanwhile, fewer employers care about applicants’ GPAs—only 42.1 percent of employers plan to screen GPAs in 2026, compared with 73.3 percent in 2019. Academic majors, industry experience and internships, and internships at the employer’s organization are top decision-making factors for employers that don’t screen for GPAs.
Artificial intelligence is also top of mind, but many employers are still figuring out exactly how AI will integrate into their business, said Christine Cruzvergara, chief education strategy officer at the job and internship platform Handshake. NACE data reflects a similar sentiment toward AI among employers—nearly 59 percent said they are not planning to or unsure whether they’ll augment entry-level jobs with AI, and 25 percent said they’re currently discussing it. About 13 percent of jobs require AI skills, the report shows, and 10.5 percent of entry-level jobs include AI in their descriptions.
“I think the majority of employers are still experimenting with how AI will supplement or augment the work that their employees are doing from entry level all the way to more senior folks,” Cruzvergara said. “And I think some functions have probably already started to figure that out a little bit more, like in some of the technical roles, or marketing is another big one, versus customer success or some of the other types of roles that people have. It’s a varied spectrum that you’re seeing at the moment.”
The percentage of fully hybrid jobs has declined since spring 2025, from 47 percent to 42 percent, while the percentage of fully in-person jobs increased from 43 percent to 48 percent, the report shows. The percentage of fully remote jobs has held steady at 10 percent. More entry-level jobs are fully in-person—50 percent—and fewer are fully remote, 6 percent.
Ashley Mowreader contributed to this report.
