It’s Who You Know
Two opposing truths are shaping the conversation about higher education value today: demand for provable outcomes is exceedingly high and the job market awaiting graduates is deteriorating rapidly.
In nearly every survey we conduct, job and graduate school outcomes emerge as one of the most important—if not the most important—factors students consider when deciding where to enroll. Bigger picture, the likelihood that a degree will lead to a clear, compelling job outcome is central to the decision to attend college at all.
At the same time, the job market for recent grads has rarely looked tougher in recent memory. This summer, unemployment for degree holders ages 22 to 27 hit its highest level in over a decade (excluding COVID). Unemployment for new grads is 9.3% - double the national unemployment rate. Companies are warning that 2026 could be the toughest job market for college grads since the pandemic.
Layoffs continue in tech and other white-collar industries, with AI threatening entry-level positions that typically went to recent graduates. Since January 2023, postings for entry-level jobs in the U.S. have declined 35%. Handshake reports that each posting now receives 30% more applicants.
AI is not only reducing the number of available jobs, it’s also making the application process more crowded. AI-generated resumes and cover letters are being sorted by AI-powered application review systems, creating a slop vs. slop bakeoff in which very few applicants stand out. For today’s students, doing everything “right” academically is no longer enough to rise above the noise.
In parallel with these trends, we’ve observed that most institutions tout impressive job and grad school placement rates. It is so common to see colleges promoting 90-95% of graduates are employed or in grad school within six months of graduation that the metric has lost its signaling power. When every institution in a competitor set looks good on paper, placement rates stop differentiating one school from another.
The convergence of these forces raises a challenging question: How can an institution meaningfully differentiate itself on outcomes when the job market tightens, competitors report similar placement rates, and AI inflates the volume of applications employers sift through?
One answer lies in a resource institutions already have but few fully leverage: their network.
The data support this: 70% to 85% of jobs are filled via networking. Applicants with a referral are 4x more likely to get hired. In other words, the most decisive edge in today’s job market—and tomorrow’s—is not the resume itself, but who hands it to the hiring manager.
We see versions of this dynamic in university life, but often in informal or unstructured ways. One example: a Gallup poll found that half of graduates who were in a fraternity or sorority have a job immediately after graduation vs. one-third of unaffiliated students.
The opportunity for institutions lies in intentionally activating their networks—alumni, parents, and industry partners—to open doors for their students. Some do this exceptionally well. One of the more powerful statements I heard from a client in recent years was “our graduates love to hire our graduates.” More important was seeing it backed up not only by their job placement rates, but also by the systems in place for connecting their students with their alumni.
Activation can take many forms:
Structured alumni mentoring, job opportunities, and referral pipelines that notify graduates when relevant student candidates are seeking roles.
Parent-employer networks that create micro-internships, job-shadow days, or first-round interview commitments.
Industry councils that partner with academic programs to scout talent early and reserve interview spots for students.
Digital platforms that make asking for (and offering) help frictionless.
An institution’s network is a powerful marketing and enrollment lever, but one that’s often under-developed or under-utilized. As outcomes rise in importance, placement rates converge, and the AI-driven job market grows more competitive, network effects will shape which graduates get noticed and which institutions stand out.
The colleges and universities that understand this—and that transform informal goodwill into structured opportunity—will give their students a measurable advantage. In a market defined by noise, scarcity, and automation, that advantage becomes a differentiator not just in job placement, but in enrollment.