What will be the impact of AI? Are students graduating with the necessary AI skills, and what kind of employment environment are they entering? I want to focus specifically on IT-related jobs, although many of the same hiring trends can be applied to other disciplines. Let’s consider what factors are affecting the job market, and what graduates may experience during their job and career search.
JOB MARKET CONCERNS
This AI theme is prevalent in many job opportunities. While AI can increase productivity and efficiency, it can also eliminate jobs, particularly through AI agents. Businesses and institutions are looking for ways to use AI agents for initial customer contact or answering questions, only escalating the issue if it’s too complex or requires more human intervention. Think about contacting a corporate help center or IT help desk. In many instances, your first interaction will be with an AI agent. As one data scientist at Research.com pointed out last week, “While enrollment in technology management programs rose by 15 percent nationwide over the past five years, job openings have not increased proportionally, creating challenges in standing out.” This situation could cause an oversaturation of candidates for tech-related jobs.
CHANGING EMPLOYMENT LANDSCAPE
The COVID-19 pandemic dramatically affected IT hiring as companies and educational institutions began to rely more heavily on digital technologies for remote work and learning environments. There was impressive growth during this period as communication, collaboration and cloud computing tools and services came from companies such as Microsoft, Amazon, Zoom and Netflix. As the HR recruitment firm Elliot Scott wrote in 2025, “The surge in the tech sector drove the recruitment market into a frenzy, companies competed for talent by offering lucrative pay packages and throwing big money at new endeavors, more than 100 percent in some cases.” However, once the world navigated the pandemic, things began to stabilize, and the tech industry witnessed layoffs, job losses and “right-sizing.”
The seismic shift in labor progressed in 2024 as companies continued to downsize and AI dramatically reshaped the tech environment. Experts predicted the potential of increased productivity and efficiency with AI. Some companies began to see the cost advantages of outsourcing and offshoring employees to save recruiting and training costs. As AI continued to mature, the need to have specialized skills for the latest IT jobs increased dramatically. In an October 2025 piece about the five most in-demand roles and hiring trends for 2026, the IT recruitment firm Alexander Technology Group speculated that those five jobs would include AI engineer, machine learning engineer, cloud architect, cybersecurity analyst and data engineer. The question is, are we training today’s students to be able to be successful in these careers? If young employees cannot find jobs in these competitive fields, and entry-level jobs are being replaced with AI solutions, what is their plan B?
INCOME STACKING
When employees are financially struggling to earn an acceptable wage, they naturally begin looking for alternative employment options. One recent development for Gen Z is the phenomenon called “income stacking” which basically is working multiple jobs to earn additional income. In a 2025 survey of over 12,000 global respondents from Gen Z and Gen Alpha on the future of work, conducted by the online freelance marketplace Fiverr, 67 percent of Gen Z said they considered income stacking essential for financial security. These populations say it provides more flexibility in their work lives, allows them to freelance, and provides the opportunity to create “side hustles” to supplement their earnings. Certainly, the impact of AI and the potential of layoffs is on the minds of these potential wage earners. As CNBC reported last week, “Concerns about the impact of artificial intelligence on jobs, and mass layoffs, have led some workers to seek backup sources of income so that they can quickly pivot should the need arise.”
DEGREE, CERTIFICATION AND EXPERIENCE
As graduates begin their job search in 2026, we may need to consider whether higher education is preparing them with the necessary skills to be successful. While AI may not be the primary rationale for students to choose their academic preparation or career, it does present a powerful influence.
In a story last month about the impact of AI on college majors and careers, Gallup noted that 42 percent of bachelor's degree students thought a great deal or a fair amount about changing their major because of AI, and 16 percent of students actually did it. Some universities and colleges have embedded AI throughout their curriculum, while others have merely dabbled in the technology. Other students are embracing AI certifications, boot camps, internships and research opportunities. Community colleges are working to increase AI literacy, training and development. As reported by the higher-ed news website The EDU Ledger last month, “Community colleges already educate nearly half of all undergraduates in the United States, with programs rooted in regional economies and built to adapt quickly to industry demand. More than 1,000 of these colleges educate 10.5 million students across the country, training them for jobs in manufacturing, healthcare, cybersecurity, and information technology, sectors now being rapidly reshaped by AI.”
WHAT'S NEXT?
The employment future for many of today’s grads is dynamic and in a continual state of flux. While AI dominates tech, business and medical fields, there is still a critical need in the service industry for employees such as electricians, plumbers and farmers. The challenging economy as well as global conflicts may also dramatically change the job landscape. Today more than ever, students need to carefully consider their employment and career paths, and educational institutions need to prepare and provide the necessary academic foundation. While we need to carefully consider the power and limitations of AI in all disciplines, we also need to understand and fully prepare our new emerging workforce for today, and for the near future.
