NEW YORK CITY — New York University's class of 2026 gathered at Washington Square Park in May for commencement as graduates entered a U.S. labor market marked by slowing hiring, artificial intelligence-driven job cuts and competition from more experienced workers. The Job Openings and Labor Turnover Survey released by the U.S. Bureau of Labor Statistics showed 6.9 million open jobs in March 2026, with hirings rising by 655,000 to 5.6 million and separations at 5.4 million.

The U.S. economy added 115,000 jobs in the latest jobs report, with most growth concentrated in healthcare, transportation and retail. Financial activities lost 11,000 jobs and information services shed 13,000. Through the first months of 2026, the economy has added an average of 68,000 jobs per month, compared with 49,000 in 2025, 186,000 in 2024 and 251,000 in 2023. The federal government workforce declined by 9,000 in April 2026 and is down 348,000 since a peak in October 2024.

An Economic Policy Institute analysis said: "The depressed hires rate suggests that it is more difficult for new entrants to get a foothold in the labour market." The same analysis said: "The quits rate is down, signalling a reduction in the overall churn in the labour market as workers and employers sit tight through this period of economic uncertainty, likely related to chaotic policy decisions and implementation around tariffs, deportations, and the conflict with Iran."

Layoffs have added to the competition facing new graduates. "We have this kind of no-hire, no-fire environment right now. We don't see as much labour turnover as we normally would, and with the layoffs, we now have more experienced workers looking for jobs who will probably elbow out recent college graduates," said Aleksandar Tomic, associate dean for strategy, innovation, and technology at Boston College.

Stanford Digital Economy Lab analysis found a 16 percent decline in relative employment for early-career workers in AI-exposed sectors, including software engineers and customer service–facing roles, while growth for more experienced workers remains stable. A Goldman Sachs survey found that advancements in AI translate to an average of 16,000 jobs cut from the economy each month. A Gallup survey found 22 percent of Gen Z respondents are excited about AI, down 14 percent from a year earlier.

"For the first time in decades, college graduates are coming into a labour market where they are competing against their peers, millennials, Gen X, and, in some cases, baby boomers who have recently been laid off due to the uptick in AI. In many instances, entry-level roles have been eliminated and fully replaced by AI," said Stephanie Alston, CEO of BGG Enterprises.

Julie Patel, a graduate student who finished a master's degree in public health, described a gap between her expectations and the current job market. "I think expectations of when I came into this programme and coming out of it in terms of a job search, funding and what's available are two very different things," Patel said.