GoKawiilKey Takeaways Small businesses are expected to hire about 974,000 recent grads ages 20 to 24 in the 2026 season, up from 962,000 in 2025, according to a new Gusto report.
Traditional white-collar launchpads like financial analyst, software engineer, and research associate roles are taking up a smaller share of jobs.
Over two million people earned Bachelor’s degrees last year, and just over one million earned associate degrees, according to Education Data.
While many new college graduates are aiming for jobs at big-name companies, small businesses are ramping up hiring.
Small businesses with one to 49 employees are expected to hire about 974,000 new graduates ages 20 to 24 in 2026 — an increase from 962,000 last year, according to a recent report from payroll platform Gusto. Over two million people earned Bachelor’s degrees last year, and just over one million earned associate degrees, according to Education Data.
Overall, hiring may look steady, but the kinds of jobs new graduates are landing are changing rapidly. The report found that roles that once dominated entry-level hiring, such as software engineer, recruiter, financial analyst and sales development representative, are taking up a smaller share of jobs. In their place, newer titles such as AI engineer are growing fast, alongside more hands-on roles like field manager and service technician, as demand shifts toward work that is harder to automate.
The report uncovered that small businesses are leaning into hiring young talent, even as large companies scale back entry-level roles. While big firms like McKinsey say AI can handle much of the work once done by junior employees, many small business owners disagree — and are looking for recent graduates specifically for their digital fluency and ability to build relationships, per the report.
Small businesses open the doors to recent college graduates
One small business owner seeks out recent college graduates. Joe Watson, founder and chief strategist of Hey Joe Media, a Tucson-based communications shop that works with nonprofits on criminal justice reform, told CNBC that he deliberately targets younger candidates and plans to bring on three recent graduates this spring.
In his view, even as AI reshapes offices and wipes out some entry-level jobs, criminal justice work depends on deep, person-to-person connections that AI cannot replicate. “The relationship is the product,” he told CNBC.
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