ResumeTemplates.com Survey: Nearly Half of Hiring Managers Will Train AI Instead of Hiring 2026 College Grads

55% of companies have shifted entry-level hiring budget to AI tools, and 45% have restructured so one senior employee using AI replaces multiple entry-level hires.

SEATTLE, June 3, 2026 /PRNewswire/ -- ResumeTemplates.com, a leading platform for professional resume templates and career advice, has published a new survey report on hiring intentions for class of 2026 college graduates. The survey of 1,000 U.S. hiring managers at companies with 101 or more employees finds that 48% would rather invest in AI tools than hire and train a recent college graduate for entry-level work.

Key findings from the ResumeTemplates.com survey of 1,000 U.S. hiring managers:

• 48% of hiring managers would rather invest in AI tools than hire and train a recent college graduate for entry-level work.
• 55% of companies have already shifted entry-level hiring budget to AI tools, and 45% have restructured so one senior employee using AI does the work of multiple entry-level hires.
• The top advantages hiring managers cite for AI over a recent grad are faster onboarding (61%), more reliable output (55%), 24/7 availability (52%), and lower cost (48%).
• AI also sidesteps common Gen Z workplace concerns: no early quits (37%), no management hand-holding (31%), no professionalism issues (30%), and no workplace drama (30%).
• The preference for AI over new graduates is highest in technology (65%) and finance (56%), and lowest in government (20%).
• 35% of hiring managers will not hire class of 2026 graduates at the same volume as the class of 2025.

This is already happening, not just planned. 55% of companies have shifted entry-level hiring budget to AI tools, and 45% report they have restructured so that one senior employee paired with AI tools now does the work of multiple entry-level hires. More than 1 in 4 companies (25%) say the senior plus AI does the equivalent of two entry-level workers, more than 1 in 10 (11%) say three, and nearly 1 in 10 (9%) say four or more. The entry-level positions that class of 2026 grads would have filled are being absorbed into senior roles rather than backfilled with new hires.

One in three hiring managers (35%) report they will not hire class of 2026 graduates at the same volume as the class of 2025. Nearly 1 in 5 (18%) plan to hire fewer 2026 grads than they hired the previous year, 1 in 20 (5%) will not hire any 2026 grads, and more than 1 in 10 (12%) have not yet committed to hiring decisions for the cohort. That one-third of hiring managers stepping back, skipping, or undecided reshapes the entry-level market the class is walking into.

Among hiring managers who lean toward AI investment, the practical advantages cited include faster onboarding (61%), more reliable and consistent output (55%), 24/7 availability (52%), and lower cost (48%). Hiring managers also cite that AI does not quit or get fired in the first year (37%), does not require management attention after setup (31%), avoids professionalism concerns (30%), and avoids workplace drama (30%). One manager put the cost case bluntly: "Don't hire a human to do what an AI can do for $20 a month."

The ResumeTemplates.com survey found the AI substitution concentrated in private-sector knowledge industries. In technology, 65% of hiring managers say they would rather invest in AI than hire and train a recent college graduate, with finance close behind at 56%. Government emerges as the only bright spot for the class of 2026, with just 20% of government hiring managers preferring AI over a recent grad, alongside the slowest budget reallocation (20%) and the lowest restructure rate (13%) of any sector surveyed.

"New grads can expect fewer opportunities in companies that are more AI-focused. This is not an uncommon strategy when new technology is introduced. Companies are still figuring out how to implement AI, and its true impact on the work, which will vary by industry and business type. Aside from AI, the market is also inundated with talented professionals who have been laid off over the last few years. Unless a position is specifically designated for recent graduates, new grads should expect significant competition in the 2026 market," said Chief Career Strategist Julia Toothacre.

For grads heading into AI-forward sectors, the practical path forward is to engage with AI directly: experimenting with the tools at a basic level, attending AI-focused professional events, building AI agents, and pursuing selective AI certifications with clear workplace outcomes. Class of 2026 job seekers entering this market are also rebuilding their application materials accordingly, leaning on ATS-friendly resume templates, AI-assisted resume builders, and entry-level resume examples that signal AI fluency alongside traditional credentials. 65% of hiring managers will still hire class of 2026 grads at the same or higher volume than the class of 2025, and the grads who position themselves as AI-fluent will be the ones who land those offers.

Methodology

This survey was conducted by ResumeTemplates.com via Pollfish in May 2026. The survey polled 1,000 U.S. hiring managers responsible for entry-level hiring decisions at companies with 101 or more employees. The margin of error for the full sample is approximately plus or minus 3.1 percentage points at a 95% confidence interval. 45% of respondents are the primary decision-maker for entry-level hiring, 37% share decision-making authority, and 18% provide input on hiring decisions. All respondents are employed full-time, aged 27 or older, and hold a Manager-tier or higher job title. Industries represented include technology (24%), manufacturing (13%), retail (10%), professional services (10%), healthcare (10%), and more than 25 additional industry categories. Pollfish uses random device engagement (RDE) to reach respondents organically, ensuring a diverse and representative sample. The platform employs quality control measures including attention checks, response time monitoring, and duplicate detection to maintain data integrity.

To view the complete report, please visit: https://www.resumetemplates.com/career-advice/hiring-managers-will-train-ai-instead-of-hiring-2026-college-grads/

Frequently Asked Questions

Are employers replacing entry-level jobs with AI in 2026? A ResumeTemplates.com survey of 1,000 U.S. hiring managers found that 48% would rather invest in AI tools than hire and train a recent college graduate for entry-level work. 55% have already shifted entry-level hiring budget to AI tools, and 45% have restructured so that one senior employee plus AI does the work of multiple entry-level hires.

Do hiring managers prefer AI over recent college graduates? In the ResumeTemplates.com survey, 48% of hiring managers said their company would rather invest in AI tools than hire and train a recent college graduate for entry-level work. 41% still preferred a recent grad, and 11% were undecided.

Which industries are most likely to choose AI over new graduates? ResumeTemplates.com found the preference for AI over a recent grad is highest in technology (65%) and finance (56%), and lowest in government (20%), making government the sector most insulated from AI-driven entry-level substitution.

Is the class of 2026 job market worse than the class of 2025? According to ResumeTemplates.com, 35% of hiring managers will not hire class of 2026 graduates at the same volume as the class of 2025. That breaks down to 18% who plan to hire fewer 2026 graduates, 5% who will not hire any, and 12% who have not committed.

Why do employers prefer AI to entry-level workers? Hiring managers in the ResumeTemplates.com survey cited faster onboarding (61%), more reliable and consistent output (55%), 24/7 availability (52%), and lower cost (48%) as the top advantages of AI over a recent college graduate.

What can class of 2026 graduates do to compete in an AI-driven job market? ResumeTemplates.com Chief Career Strategist Julia Toothacre recommends that graduates experiment with AI tools, attend AI-focused professional events, build AI agents they can show on a resume, and pursue selective AI certifications with clear workplace outcomes.

ABOUT RESUMETEMPLATES.COM

ResumeTemplates.com is a leading resume and career-development platform that helps millions of job seekers build professional, ATS-friendly resumes and prepare for the modern hiring market. Through its library of resume templates, AI resume builder, resume examples, and career advice resources, ResumeTemplates.com helps job seekers create resumes optimized for applicant tracking systems (ATS) and today's hiring practices. The site also publishes original survey research on workforce trends, hiring behavior, and the changing nature of work, with findings regularly cited by national media. All career guidance is reviewed by ResumeTemplates.com's career advisory team, led by Chief Career Strategist Julia Toothacre.

SOURCE ResumeTemplates.com