College graduates face tough job market as AI reshapes hiring process

College grads face tough job market

With another 4 million college graduates preparing to enter the workforce, a new generation of jobseekers is facing an increasingly competitive market — and a hiring process being transformed by artificial intelligence.

OAKLAND, Calif. - With another 4 million college graduates preparing to enter the workforce, a new generation of jobseekers is facing an increasingly competitive market — and a hiring process being transformed by artificial intelligence.

By the numbers:

The U.S. unemployment rate sits at around 4.2 percent, but for workers between the ages of 22 and 27, who recently graduated from college, the rate climbs to 7.2 percent, according to data released this week from the New York Reserve Bank.

Dina Taylor, an executive with hiring technology company HireVue, said the class of 2026 should look beyond the traditional resume and focus on showcasing their skills, behaviors and personality.

"There is technology empowering them to do just that," Taylor said.

About 22 percent of employers now report using AI during the hiring process, and Taylor said candidates should embrace the technology as well — but responsibly.

She compared using AI in a job search to using a calculator for math homework. The goal, she said, is to use it as a tool that supports the process, not one that does the work for you.

"Maybe don't use it to do the writing itself, but use it to do a double check and make sure the formatting is appropriate," Taylor said. "Think of it as a 2.0 version of a dictionary or a thesaurus."

Dig deeper:

HireVue works with approximately 1,000 companies worldwide, helping employers assess candidates through a range of tools including skills assessments, recorded video interviews and live interviews. 

Taylor said the platform is designed to help employers manage high volumes of applicants more efficiently while giving candidates a faster path to connect with recruiters.

Taylor pushed back on criticism that AI-driven hiring removes the human element from the process.

She pointed to one HireVue client that recently launched an AI interviewing tool, in which only 4 percent of candidates opted out.

"The alternative is you sit in that applicant tracking system and no one talks to you and no one calls you," she said. "This gives people an opportunity to tell their story and share why they're a great fit for that job."