It’s hard to believe we’re already halfway through the year. In early careers, we’d typically expect a post-Christmas surge followed by a quieter planning period, but 2026 has defied the usual rhythm.
Early careers hiring is becoming more deliberate and strategic. No longer just about entry-level resourcing, it’s now central to building future leadership pipelines, strengthening employer brand and driving long-term capability. From buy-side firms engaging earlier than ever to high-growth and PE-backed businesses using cohort hiring to scale, organisations are rethinking how they access and develop talent.
At the same time, diversity and social mobility remain firmly on the agenda. We’ve continued to invest in widening access through initiatives like our EMPOWER programme and ongoing work with the Classroom to Boardroom Foundation, helping firms build more inclusive and future-fit talent strategies.
Overlaying all of this is AI, which is no longer a future consideration but an immediate and evolving force. From AI-generated applications to candidate use throughout the hiring process, the landscape is shifting quickly. In response, employers are placing greater emphasis on authenticity, in-person engagement and the human skills that matter most, including critical thinking, emotional intelligence and commercial judgement.
As we move into what is typically an even more active H2, we’re excited to continue sharing insights and supporting clients through both the challenges and opportunities ahead. In this update, we outline the key themes from the last six months.
This year we hosted our third annual Professional Pathways programme, which brought together six leading firms: Arcmont, Ares, The CD&R Foundation, General Atlantic, Park Square Capital and Saltus. The programme introduced diverse, high-potential students to careers across private markets and wealth.
The impact has been both immediate and measurable:
Beyond the event, engagement remains high, with 85% of students already pursuing mentoring relationships.
The takeaway is clear: early, meaningful engagement is critical in helping students from less privileged backgrounds build awareness and confidence, while creating a pipeline of better-prepared and more motivated talent.
To learn more or get involved, contact: ctbfoundation@kernel-group.com
Our 2026 Early Careers Compensation Report, based on more than 400 data points, shows a market defined by high candidate supply, stable base pay and more deliberate compensation design.
The result is a market where firms must get compensation “right” just to compete, but differentiation increasingly comes from career development, progression clarity and the overall value proposition. Organisations that fail to keep pace with market benchmarks risk falling behind, even as pay becomes just one part of a broader talent strategy.
Click here to request a copy of this year’s Early Careers Compensation Report
Across private equity-backed businesses, a clear shift is emerging: senior hiring alone is no longer sufficient to support growth.
Junior hiring is increasingly being used as a strategic lever, providing a more sustainable and cost-effective way to build capability without compromising quality.
Interestingly, the most effective approaches are not always large-scale graduate programmes. Many firms are starting more selectively through a single hire, targeted longlists or exploratory hiring, creating optionality, skills diversity and long-term upside with limited upfront investment.
Demand for early careers talent in private equity continues to grow rapidly, while the core talent pool remains largely unchanged.
With both buy-side and sell-side firms competing for the same talent, organisations are under increasing pressure to differentiate their approach, from earlier engagement strategies to redefined hiring processes and more compelling value propositions.
Gen Z has entered the workforce during a period of unprecedented change, from financial crises to a global pandemic and now the rise of AI.
Understanding this cohort is critical, not just for hiring but also for retention and long-term performance.
This year marks our ninth annual Gen Z report, which is now evolving into a quarterly series to reflect real-time market dynamics. The first release will focus on AI in recruitment and the workplace, exploring candidate behaviour, implications for employers and practical recommendations.
Register your interest here
“AI is coming for junior jobs” is one of the most common narratives in the market, but the data tells a more nuanced story.
Hiring remains strong. Firms are increasing intakes, creating new roles and continuing to invest in early talent.
The rationale is simple: while AI can enhance productivity, organisations still need to build future leaders, institutional knowledge and judgement.
AI will undoubtedly reshape junior roles and the skills required to succeed. Notably, however, the firms embracing AI most aggressively are often the same ones continuing to invest heavily in early careers talent.
Download the PDF version of the H1 2026 Market Review.
The early careers market is becoming busier, more complex and more strategic.
For firms willing to adapt, whether through earlier engagement, smarter hiring models or clearer value propositions, the opportunity is significant.
As we head into H2, we look forward to continuing the conversation.
To find out more about the Early Careers team, or to discuss what these trends mean for your hiring strategy, take a look around.
