The 2025 labor market was mixed , shaped by economic pressures such as inflation, interest rate changes and tariffs, which leaves the economic outlook for 2026 uncertain. This uncertainty has led to an active but increasingly selective early-career hiring landscape, according to Drexel University’s 2026 College Hiring Outlook . The annual report from Drexel’s LeBow College of Business revealed the trends and challenges businesses are facing when it comes to hiring, especially hiring recent graduates.
The 2026 report revealed a consistent theme from all of the employers surveyed: Internships and co-op experiences are integral to their hiring practices. The report drew from surveys of over 600 employers across industries and organizations of all sizes.
“We found employer optimism declined to its lowest level in more than a decade, leading many organizations to prioritize stability and operational efficiency over broad hiring expansion,” said Murugan Anandarajan, PhD , vice dean and professor of MIS in LeBow and co-author of the report.
Anandarajan and his co-authors Cuneyt Gozu, PhD , associate clinical professor and academic director, and David Prisco , director, both in LeBow’s Center for Career Readiness , wrote in the report that internships and co-op experiences — structured programs alternating academic course work with full-time 4-6 month employment in a student’s field of study — are central to how employers assess skills, evaluate readiness and build their future pipelines. The success of these programs emphasizes the importance of in-person engagement for early-career roles in order to benefit from mentorship, collaboration and hands-on learning.
While the importance of the early-talent pathway was shared by employers of different sizes and industries, hiring expectations varied. Small organizations (fewer than 500 employees) reported the sharpest pullback in early-career hiring for 2026. But health care, finance and construction sectors showed comparatively stronger hiring outlooks.
Additionally, the authors noted that employers expressed cautious openness toward the use of artificial intelligence in career development and recruitment preparation, while maintaining clear expectations around authenticity, demonstrable skills and applicant ownership of materials.
The report shows that recent graduates will find success with strong preparation, meaningful experience and alignment between academic pathways and evolving employer expectations.
“We often remind students in our classes at LeBow that communication and professional skills are critically important,” said Anandarajan. “Students who develop judgment, adaptability, communication skills and professional integrity will set themselves apart from other candidates.”
Access the full report here .