As head of economic research at Handshake, I’m frequently asked about what our data can tell us about the labor market. So with 2025 in the rearview, I wanted to do a retrospective what we’ve seen on the platform as we enter a key season for recruiting.
AI is not a singular driver of hiring trends
AI is reshaping work, but it’s not yet a clear explanation for early career hiring challenges. The trends we’re seeing suggest a range of drivers (including overhiring in 2021-22, interests hikes in 2023) rather than widespread, AI-driven displacement. Notably, the sharpest pullback in postings last year came from government employers, driven by hiring freezes and consistent with recent jobs reports on federal employment.
Competition for entry-level roles is intense
Compared to last year, the class of 2026 has submitted 23 applications per full-time job, up 8% from last year’s senior class (20.8 apps-per-job) and double that of the class of 2023 (11 apps-per-job).
The 2025 state of tech (and tech majors)
Job postings by Tech companies were down 9% year-over-year, and it’s showing up in student sentiment: 70% of Class of 2026 computer science majors report being pessimistic about their career given news about the job market (vs. fewer than half of health majors), and nearly 30% say they would have chosen a different major knowing what they know now.
Conclusion
Early talent sits at the crossroads of so much right now: from AI and automation to debates over the value of college and a new generation rewriting the rules of their careers. Excited to keep digging into the data with you this year!
