College was once a one-way ticket to a secure, full-time job with health care and a 401(k). But in the AI age, it\u2019s becoming less of a reality and more of a faraway dream.<\/p>\n
That\u2019s most apparent to recent graduates. Today, instead of betting on a full-time job, more Gen Z graduates are looking to alternative paths to employment out of necessity. ZipRecruiter\u2019s 2026 Graduate Report<\/a> found that more are turning to unconventional jobs right out of college.<\/p>\n According to the study\u2014a survey of 1,500 class of 2025 graduates and 1,500 soon-to-be class of 2026 graduates\u2014nearly 38% are considering starting their own business, 32.5% are looking at gig work, 28% are exploring freelance work, and 11% are pursuing the skilled trades.<\/p>\n \u201cGrads are piecing together experience through internships, side work, stepping-stone roles, and even starting their own ventures,\u201d Nicole Bachaud, labor economist at ZipRecruiter, said in a statement. \u201cWith fewer entry-level roles available, their path looks different, but many are finding their way.\u201d<\/p>\n While a recent survey<\/a> from the National Association of Colleges and Employers found employers plan on increasing hiring of new graduates by 5.6%, Gen Zero are finding themselves in an increasingly precarious position in the labor market. Business leaders have sounded the alarms on AI\u2019s ability to disrupt the workforce. And those warnings are starting to come to fruition.<\/p>\n Jack Dorsey\u2019s Block<\/a> led the way<\/a> earlier this year, cutting 40% of headcount due to AI efficiency and telling other firms to follow suit. And this week, Meta<\/a> announced<\/a> it was cutting 10% of its workforce amid heavy AI spending. Microsoft<\/a> is also offering buyouts to employees as a way to control costs amid an AI spending spree. Oracle<\/a> cut workers<\/a> for the same reason last month.<\/p>\n But layoffs are only half the story. The ZipRecruiter report found that entry-level job openings are drying up, making it harder for recent graduates to start the climb up the corporate ladder. Entry-level job postings made up just 38.6% of all postings in March, down from 44% in 2023. That\u2019s meant more applications per open role. The number of clicks per job opening increased by nearly 22% year over year, suggesting tougher odds for job seekers.<\/p>\n All of this has culminated in an unemployment rate for recent grads that swelled to 5.6% in December, up 1.7 percentage points since October 2022, according to data from the Federal Reserve Bank of New York<\/a>. Meanwhile, the jobless rate for all workers was 4.2%, up just 0.8 points in that span.<\/p>\n There is some good news for the class of 2026<\/p>\n To be sure, Gen Z is still finding work, especially as they opt for roles outside of their desired field. Just one in four graduates is on their dream career path, according to the ZipRecruiter.<\/p>\n In fact, 77% of the class of 2025 found a role within three months of graduation, up from 63.3% a year ago.<\/p>\n Researchers also attribute the increase in speedy employment in part to determination rather than an easing of labor market conditions, as students today fire out more applications before landing an offer.<\/p>\n A burgeoning job application market has emerged to meet the moment, with services now handling the tedious work of writing cover letters and r\u00e9sum\u00e9s as job seekers apply to more roles than ever.<\/p>\n Companies like Reverse Recruiting Agency<\/a> apply to jobs on behalf of applicants. Others start working with college students as early as sophomore year<\/a> to help them secure a foothold on the corporate ladder years before turning the tassel.<\/p>\n Whatever the first job out of college\u2014barista, coder, or something in between\u2014the path has changed. And it\u2019s unclear if the traditional way up the corporate ladder will ever return.<\/p>\n \u201cThe old model was: graduate, find an entry-level job, climb from there,\u201d ZipRecruiter\u2019s Bachaud said. \u201cWhat we\u2019re seeing now is something less linear, yet their outcomes are actually improving.\u201d<\/p>\n