Get the guideBy Katie Merritt, Senior Research and Data Manager, Robert HalfThe frenetic pace of hiring seen in the U.S. job market in recent years cooled significantly in 2025. The Bureau of Labor Statistics (BLS) reported negative job growth in August and annual job counts for 2024 ultimately came in lower than expected. Keeping pace with labor market trends toward the end of 2025 was particularly challenging due to a prolonged federal government shutdown that disrupted BLS data collection and reporting, including the agency’s job numbers for October and November.Economic uncertainty and market volatility throughout the year prompted many employers to shift from broad-based workforce expansion to more selective hiring to support critical priorities. Meanwhile, many workers decided to put new job search plans on ice, taking time to think more deliberately about what they want next from their careers, including advancement opportunities and greater flexibility in where and when they work.Now, as we enter 2026, it appears the downshift in the labor market may have reached its low point, and we could see renewed momentum in the months ahead. Research from Robert Half shows that 38% of employed U.S. workers plan to launch a job search in the first half of 2026, up from 29% a year ago. It’s the first upward move after two years of steady decline. Separate data also suggests employers in many industries are considering expanding their teams in early 2026.The message for professionals? If finding a new role in 2026 is your goal, now is a good time to start exploring your options. Here’s more insight into why the labor market may be turning back in candidates’ favor—and how to lay the groundwork for a successful job search, including proactively building the AI literacy employers increasingly expect.For practical tips on navigating the job market, keeping skills current and standing out, see Robert Half’s new Job Search Strategies Guide.
The ‘great thaw’ of 2026 is emerging: what it could mean for the job market—and your next career move
Findings from recent Robert Half surveys indicate many organizations are preparing to expand headcount more in the first half of 2026 than they did during the same period in 2025. Workers, too, say they’re increasingly ready to consider new roles that offer compelling benefits, clearer career progression, better pay or relief from burnout. And with fewer employers offering hybrid or remote options, work flexibility continues to be a major motivator for new job searches.So, if 2025 was the year of “job hugging”—staying put rather than risking a move—the early signs of 2026 are pointing to something different: a “great thaw.” This describes the moment when workers who have been voluntarily staying out of the job market begin exploring new opportunities just as employers become more confident about expanding their teams.If the “great thaw” plays out as predicted, rising mobility could shift the power dynamic slightly back toward workers. When more professionals are willing to move, and employers know it, organizations face greater competition to attract and retain skilled talent. As a result, job seekers often gain more leverage to negotiate not just compensation, but also flexibility and career development opportunities.Even so, success in this environment requires a more intentional approach. Start by defining how you want to work—remote, hybrid or on-site—and be clear about where you can comfortably compromise on flexibility, or not. From there, get specific about other priorities, including benefits, advancement potential and organizational culture. This level of focus can help you concentrate on opportunities that align best with your professional and personal priorities.Keep in mind that while the “great thaw” may open more doors for candidates, increased opportunity doesn’t guarantee results. As employers grow more confident about hiring, they’re likely to remain selective and prioritize candidates with in-demand capabilities. One of the most important skill sets in 2026 is AI literacy, which can meaningfully strengthen how you position yourself in the job market.Learn more about why the first half of 2026 is likely to see a more intentional labor market.
AI literacy is fast becoming a core skill—and an upskilling priority for 2026
Even if you’re not actively exploring the job market, you’ve likely heard plenty about how important it is for today’s professionals to understand how to work effectively with AI tools. Indeed, one upskilling priority that stands out for workers across industries in 2026 is developing AI literacy, fast.But what does AI literacy actually mean? It isn’t about writing code or building models (unless that’s your goal). It’s about using AI capabilities responsibly and strategically to improve results in your everyday work. That includes:Knowing what tasks to delegate to AIGiving clear, structured instructions to AIChecking and refining AI outputBeing aware of common AI-related risks (e.g., errors, bias)A simple way to understand what AI literacy looks like in action is to compare “one-shot prompting” with “orchestrated prompting” when using generative AI tools:One-shot prompting: Write 6 resume bullets for my accounting manager role.Orchestrated prompting: Ask me 6 questions about my accounting manager role—covering scope (team size and responsibilities), the systems I use, key stakeholders and measurable outcomes. Then, draft 6 resume bullets for an accounting manager role using this structure: action verb + task + tool + impact metric. Use only the details I provide. After drafting, rate each bullet 1–10 for strength and specificity and revise anything below 8.The second approach mirrors what many employers want to see. It shows that you can use AI to structure your thinking, surface relevant information and refine your work instead of handing everything over to the tool and hoping for the best results. With that expectation from employers in mind, here are a few practical ways to increase AI literacy in 2026:Build a baseline quickly. Take a short course or webinar focused on AI fundamentals in your field, emphasizing real-world use cases.Practice with purpose. Use the AI tools you already have access to at work to support everyday tasks, such as drafting and refining content, translating a brief into a presentation or analyzing structured data relevant to your role.Compare tools deliberately. Test different platforms (e.g., Gemini, Claude or ChatGPT) using non-sensitive information to understand which tools work best for specific types of work.Document impact. Collect examples of where AI helped you save time, improve quality or solve a problem—details you can reference in interviews or performance conversations.Human + AI roles are likely to move mainstream in 2026. Read more about this and other workplace trend predictions for the new year.
Tips for breaking through the ‘AI hiring wall’
AI is also changing how companies review resumes and screen applicants. Many organizations use applicant tracking systems and AI-enabled tools to handle high volumes of applications. These tools can help hiring teams manage demand, but they may filter out strong candidates if resumes are hard to parse or don’t reflect the right keywords.You can improve your chances of getting through these filters by:Keeping your resume text-based, with simple formattingMirroring relevant keywords from job postings when they reflect your actual experienceQuantifying outcomes where you can (for example, “reduced month-end close by 2 days”)Preparing for interviews that may include AI-enabled elements, such as recorded video responses or skills assessmentsThink of this as another form of AI literacy: understanding how tools on the employer side work, so you can present your experience in a way they can recognize. Resources like Robert Half’s Job Search Strategies Guide can walk you through how to customize your materials for both human reviewers and the AI tools many companies now use, so you can break through the “AI hiring wall.”Learn how Robert Half’s recruiters can work with you to find a job in the new year.
How contract roles can fit into your 2026 job search strategy
Search jobs nowIf your search for a permanent role takes longer than expected, a contract or “bridge” job can help you stay active in the workforce while you reset your direction. Even if a contract job opportunity isn’t an exact match for your long-term career goals, it can help you strengthen transferable skills like communication, problem solving and project coordination.Contract jobs can also enable you to:Gain exposure to new tools, systems and workflowsWork on projects that strengthen your resumeExpand your professional network across companies and industriesFor some professionals, working in contract jobs becomes a long-term career choice. For others, it is a vital step toward landing their next permanent role. Either way, it’s worth considering how these opportunities might align with your job search plans as you navigate a labor market that will likely be heating up—and becoming more competitive—in the first half of 2026.To see what kinds of contract jobs and permanent roles employers are currently hiring for, explore Robert Half’s job listings.
