Small Businesses Reduce Entry-Level Hiring Amid Concerns Over Graduate Readiness

New York, Sunday, 18 January 2026.
As of January 2026, a critical disconnect has emerged between higher education outcomes and labor market demands. Recent data reveals that small businesses are now 30% more likely than larger firms to avoid hiring recent college graduates, citing a distinct lack of practical workforce readiness. With youth unemployment for degree-holders hitting 9.7% in late 2025, the traditional academic pathway is fracturing under the weight of rising training costs and the automation of entry-level roles by artificial intelligence. To mitigate this, industry analysts emphasize that students must prioritize internships and direct industry engagement to acquire the soft skills and practical experience that degrees alone no longer guarantee.