Career Readiness Is Not One-Size-Fits-All: How Entry-Level Hiring Varies by Industry

• 49% of Business/Finance and 47% of Technology employers report fewer entry-level jobs than five years ago, compared to 31% in Healthcare and 30% in Skilled Trades/Manufacturing  

• 57% of Technology employers say AI and emerging tech are affecting entry-level hiring, compared to 19% in Skilled Trades/Manufacturing 

• 78% of hiring managers consider previous hands-on experience important when evaluating candidates 

The path from education to employment is changing, and what it takes to land an entry-level job increasingly varies by industry. With U.S. entry-level job postings down 35% since early 2023, according to Revelio Labs, employers are not only hiring fewer entry-level workers, but also rethinking what candidates need to succeed.  

Last year's Cengage Employability Report revealed a growing emphasis on skills-first hiring, with employers prioritizing job-specific technical abilities. The 2026 Employability Report reveals another important shift: employers’ definition of career readiness is not the same across every field.  

Across technology, healthcare, business & financial services, engineering, and skilled trades, the impact of AI, evolving credential requirements, and demand for hands-on experience are creating a variety of different pathways into the workforce. For educators and institutions, understanding these distinct pathways is increasingly important to helping learners build the skills and experiences they need to succeed in their chosen fields. 

 Entry-level opportunities are tightening, but the pressure is not equal  

Conversations about shrinking entry-level opportunities extend well beyond the technology industry.  In fact, 40% of hiring managers report that there are fewer entry-level jobs and 42% fewer internships available in their industry than there were five years ago. And when digging into the data, it’s clear that the impact is not equal across different industries. 

By comparison, graduates in the Business & Finance industry are experiencing some of the greatest pressures, with employers in this discipline reporting the highest rate of fewer entry-level hires (46%).  By comparison, Healthcare and Skilled Trades/Manufacturing appear more resilient. 

• Hiring fewer entry-level employees: Business/Finance (46%), Technology (41%), Healthcare (29%), Engineering (29%), and Skilled Trades/Manufacturing (27%)  

• Employers today say there are fewer entry-level jobs in their industry than five years ago: Technology (47%), Business/Finance (49%), Engineering (44%), Healthcare (31%), Skilled Trades/Manufacturing (30%)  

Access to opportunities for gaining experience is also changing. Internship availability has declined across several industries, including those with relatively stable hiring, making it harder for learners to build experience before pursuing their first full-time role.  

These differences make career preparation before graduation increasingly important. Learners need opportunities to understand where demand exists in their chosen fields, what employers expect, and which experiences can help them make the transition from education to employment. 

AI Is Redefining Both Entry-Level Jobs and the Skills Needed to Do Them  

While the debate over whether AI will eliminate or create jobs continues, the findings point to a more nuanced reality. AI is changing both what entry-level work looks like and what employers value in candidates, but its impact varies significantly by industry.

Technology and Business & Finance are experiencing the greatest impact on entry-level hiring. More than half (57%) of Technology employers and nearly half (49%) of Business & Finance employers say AI and emerging technologies are affecting entry-level hiring. At the same time, these industries are leading demand for AI-related skills: 55% of Technology employers and 41% of Business & Finance employers say they are actively recruiting candidates with GenAI and emerging-tech skills. 

Hiring affected by AI/emerging technology:  

• Technology: 57%  

• Business/Finance: 49%  

• Engineering: 33%  

• Healthcare: 23%  

• Skilled Trades/Manufacturing: 19%  

Employers actively hiring for GenAI/emerging-tech skills:  

• Technology: 55%  

• Business/Finance: 41%  

• Healthcare: 22%  

• Engineering: 19%  

• Skilled Trades/Manufacturing: 17%  

However, AI proficiency is not a standalone qualifier for career readiness. As demand for AI fluency increases, so has the value in distinctly human capabilities. Employers say AI is increasing their emphasis on critical thinking, adaptability, communication, problem-solving, and digital literacy, pointing to a more applied definition of AI readiness. They are seeking candidates who know when and how to use the technology, evaluate its output, and apply their own judgment and subject-matter expertise.  

Yet 64% of graduates say they've learned most of their AI skills primarily through independent learning, suggesting much of this preparation is currently happening outside formal education.  

This presents an opportunity for educators to help learners develop AI skills within the context of the fields they plan to enter. Institutions can incorporate discipline-specific applications, real-world scenarios, and opportunities to evaluate AI-generated outputs into coursework. Doing so can strengthen technical proficiency while also reinforcing the critical thinking, judgment, and problem-solving skills learners need to use AI effectively in the workplace. 

Employers Are Broadening What Counts as Proof of Job Readiness  

The evolution of employers’ expectations on entry-level candidates has also impacted their perspective on degrees and credentials as the single source of proof for job readiness. While degrees are still valuable – two-thirds of hiring manager who require degrees for entry-level roles feel that it signals they have the proper skills – employers are increasingly evaluating candidates through a combination of education, credentials, demonstrated skills, and hands-on experience.  

The majority of employers in most industries still say a college degree holds value for entry-level talent:  

• Engineering: 73%  

• Business/Finance: 69%  

• Technology: 66%  

• Healthcare: 62%  

• Skilled Trades/Manufacturing: 51%  

At the same time, the value placed on alternative credentials also varies by industry. Employers in Healthcare (39%), Engineering (38%), and Skilled Trades/Manufacturing (37%) are more likely to say they have expanded their searches to candidates with industry credentials and certifications, compared with Technology (31%) and Business & Finance (27%). 

However, hands-on experience may be the strongest common denominator across industries, with 78% of hiring managers overall considering previous hands-on experience important when choosing between candidates. Graduates recognize its value, too: over half (56%) say internships, co-ops, and paid work experiences are the most important opportunities colleges could provide to better prepare them for work.  

The challenge is that these opportunities are becoming harder to access. That creates an opportunity for educators to find additional ways for learners to apply classroom learning through real-world projects, simulations, work-based learning, and other hands-on experiences. 

Career preparation increasingly requires more than any single credential or skill. Learners need opportunities to build and demonstrate a combination of disciplinary knowledge, technical and durable skills, relevant credentials, and applied experience. 

Preparing Learners for Different Paths Into the Workforce 

As industries redefine what it means to be career ready, education must help learners prepare for more than their first job. That means building a strong foundation of disciplinary knowledge, developing durable skills, and creating meaningful opportunities to apply learning in real-world contexts.

But the findings also reinforce that there is no single formula for career readiness. The skills, credentials, technologies, and experiences that matter most can look very different depending on where a learner is headed. 

For educators and institutions, the opportunity is to make those connections clearer. By helping learners understand what employers in their chosen fields value and giving them opportunities to build and apply those capabilities, education can help learners navigate not just their first step into the workforce, but the changes that will continue throughout their careers.  

 

Frequently Asked Questions  

What skills do employers look for in entry-level candidates across industries?  

Career readiness depends increasingly on the field a learner plans to enter. Technology and business roles may require greater AI and digital fluency, while healthcare, engineering, and skilled trades can place different weight on credentials, technical expertise, and applied experience. Across industries, however, employers continue to value transferable capabilities such as communication, critical thinking, adaptability, and problem-solving alongside job-specific skills.  

What skills should colleges prioritize for different industries?  

Colleges should connect foundational skills with the tools, technologies, and applications students are likely to encounter in their fields. That could mean applied AI and data skills in technology or business, clinical technologies in healthcare, or technical tools and hands-on applications in engineering and skilled trades. The goal is not to turn every course into job training, but to help students understand how what they learn applies within their field and build skills they can transfer as industry needs change.  

 How can colleges better connect classroom learning to industry needs?  

Institutions can give students more opportunities to apply academic knowledge through industry-informed course content, simulations, real-world projects, and hands-on learning experiences. Faculty can also incorporate current workplace tools and scenarios into existing courses rather than continually redesigning curricula as industries evolve. This matters to students: 56% of recent graduates say colleges should provide more internships, co-ops, or paid work experiences to better prepare them for the workforce.