Collage HR Trends for Q2 2026:

Collage HR Trends for Q2 2026: AI everything, how hiring is looking different, and entry level jobs

1. AI Everything and AI Layoffs

Almost every leader I speak to is thinking about how to do more with AI. Many are giving vague guidance of “use more AI with your teams” and asking questions like “can’t we automate that?”. Meta announced a 10% reduction in its workforce on top of a 10% reassignment of staff to AI related roles. It is known that Meta and other tech giants hired a lot after the pandemic. AI layoffs could be the story some companies decide to tell the market.

Most employers are not under this type of scrutiny and also have more questions than answers. The Bank of Canada expects to see a limited number of total job losses in the AI transformation and has not seen significant productivity gains to date. 

Our Recommendation: feedback should be specific and actionable. This applies to AI usage as well. Give as much guidance as possible. As an HR team, you have an opportunity to build an AI foundation for the whole organization. People First HR Services, one of Collage’s partners, provides a playbook that can help you succeed.

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2. Hiring Looks Different

Hiring is looking different on every front. Candidates are using AI. Some employers report a 40% increase in applicants. For others, it is much more. Candidates are using AI to create and tailor resumes to apply for more roles. Recruiters are using AI in all parts of the process. We introduced an AI resume screener in 2025 which has been a heavily used feature. Recruiters are spending 11 seconds per resume. Employers are getting close to hiring AI candidates, as per an interesting Betakit story. It is a strange time.

With more applicants, connections and employee referrals play an even bigger role. More managers are working their connections, with the top candidates often reluctant to apply online.

Our Recommendation: as an applicant, build a network in any way that you can. Endless online applications are frustrating and your personal connections can be your saving grace. Family and friends want to help and you can let them. As an employer, decide where you want to use AI and where you don’t. Reviewing resumes is the easy choice as an input. For managers and leaders, build and maintain your pipeline of candidates with people you’d like to work with.

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3. Entry Level Jobs

Starting a career was never easy. The gap between youth and adult unemployment reached near all-time highs in 2025. 2026 has not gotten better, with Canadian youth unemployment rates at 14.3% in April. 81% of employers say that entry level job expectations have increased. 

On the other hand, employers understand the importance of the next generation. 60% of hiring managers see entry level jobs as very important to their organization. Some employers are hiring with this understanding, with Accenture increasing its new hire numbers.

‍Our Recommendation: Bet on smart people and look beyond people’s age. Youth can help energize and elevate your team. Entry level staff can come up with fresh ideas and can also have an openness to adopting AI. Somebody gave us a chance (a long time ago) and we have an opportunity to help the next generation.