December closed out a year of unusually subdued job growth in the United States, underscoring a pattern of selective and uneven hiring seen throughout most of 2025. Over the full year, job gains totaled about 584,000, which is the lowest annual increase seen since 2003.According to the December jobs report from the Bureau of Labor Statistics (BLS), employers added 50,000 jobs last month, landing at the low end of economists’ expectations. Gains were seen primarily in the leisure and hospitality and private education and health services industries.The December jobs report also noted that 76,000 fewer jobs were added in October and November combined than previously reported. The national unemployment rate also dropped to 4.4% in December, while the rate for college-degreed workers edged down slightly to 2.8%.
A market in transition as the new year takes shape
Data from the BLS offers a mixed picture of the U.S. labor market. Hiring has cooled, but the demand for skilled professionals clearly persists. That talent also remains challenging to find. Consider NFIB’s December jobs report, which found that 33% of small business owners had roles they couldn’t staff last month. And among those employers hiring or trying to hire, 91% said qualified applicants remain scarce.BLS data shows about 3.2 million workers quit their jobs in November, little changed from the previous month. However, Robert Half’s research suggests the number of quits could soon trend upward. Nearly 4 in 10 employed U.S. workers plan to look for a new job in the first half of 2026, motivated by better benefits, career growth and more competitive pay. Findings from recent Robert Half surveys also indicate that many employers are considering expanding their teams early this year.The takeaway? A “great thaw” is emerging in the U.S. labor market. More organizations are preparing to hire at the same time more professionals are looking to launch a new job search. With this shift in mind, here are practical steps employers and candidates can take to prepare for what’s ahead.
What the latest labor market trends mean for employers
With job seeker activity on the upswing and skill shortages persisting, employers need to take a more focused approach to workforce planning so they can hire swiftly and decisively. These 3 priorities can help center your efforts as the labor market evolves in early 2026.1. Use year-end reviews to spot skills gaps and inform hiring plansIn a cautious hiring environment, year-end evaluations offer one of the clearest views into where your business likely needs to add support. Look beyond individual performance and focus on patterns—critical projects with slipping deadlines, teams burdened by heavy workloads, or functions struggling to adapt to new systems or regulatory requirements.These patterns can help you determine the type of support your workforce needs, whether that’s targeted training, additional full-time staff or highly skilled contract talent to bridge specific gaps. As you plan for 2026 initiatives such as system upgrades, product launches or market expansion, map these needs against the capabilities you already have. That will help you hire strategically for the work ahead, not the work of last year.2. Compete with total compensation and flexibility, not just base payWhile employers are hiring selectively, many are still prepared to pay more for hard-to-find skills. Research for the 2026 Salary Guide From Robert Half found that 84% of hiring managers are offering higher compensation for candidates with specialized skills, even as 74% say they still struggle to meet candidates’ pay expectations.To compete effectively for in-demand talent, benchmark compensation levels regularly and highlight perks and benefits that matter most to your workforce. Also, keep in mind that the lack of work flexibility is often a key motivator for new job searches. So, whether you offer hybrid arrangements, adjusted hours or role-specific arrangements, make it clear to potential hires what options they can expect.See our recent analysis of remote work statistics and trends.3. Refresh roles and hiring practices for an AI-enabled workforceAI is reshaping the day-to-day reality of work, and many roles now require capabilities that weren’t part of the job even a year ago. Some organizations are already treating AI agents as collaborators within their teams, and leading employers are adjusting their talent recruitment strategies accordingly. For many roles, it’s no longer enough for candidates to say they’ve “used AI.” Employers need to know how potential hires will use AI tools on the job—what tasks they’ll rely on the technology for, how they’ll check the work and where their own judgment comes in.Updating job descriptions to reflect how AI fits into the workflow and asking candidates to walk through real examples can make it easier to hire workers who can step in, contribute quickly and keep up as the tools evolve.Looking for professionals with AI skills? Explore Robert Half’s talent network now.
What the latest labor market trends mean for job seekers
Get the guideEarly 2026 is bringing a more dynamic job market, even as many employers continue to focus on hiring primarily for business-critical roles. If you’re considering a move, these 3 steps can help you prepare for new opportunities and focus your search on jobs that align with your skills, experience and career goals.1. Lead with the strengths that set you apartDemand remains strong for professionals with specialized skills, particularly in fields such as finance and accounting, tech and IT, and nonclinical healthcare. The challenge is standing out as employers hold fast to a more deliberate hiring approach. These strategies can help:In your resume and LinkedIn profile, emphasize skills and accomplishments that are in high demand in your field; if you’re newer to the workforce, focus on outcomes from internships, part-time roles, relevant school projects or volunteer workTranslate responsibilities into results to show how you improved efficiency, supported growth or reduced risk in previous rolesTailor your job application materials to each role you’re targeting so the most relevant experience is easy for hiring managers (and automated screening tools) to spotDownload Robert Half’s Job Search Strategies Guide for more tips on navigating the labor market.
2. Build practical AI skills you can promote with confidenceAI is becoming part of what “skilled” means for many roles across industries, and we predict the human + AI model will become increasingly embedded in job design across many roles this year. Employers in almost every major industry are on the lookout for professionals with AI literacy, or the ability to use AI capabilities responsibly and effectively in your everyday work.To develop AI literacy:Identify the AI tools most relevant to your role and responsibilities, whether that’s a generative AI assistant, a coding copilot, an analytics feature or an automation toolApply AI to real tasks, such as document drafting, summarizing, generating ideas or checking for errors, and refine your resultsIdentify and document a few examples where AI helped you save time, improve quality or solve a problemEven if you don’t plan to launch a new job search this year, know that increasing your AI literacy could help you advance more quickly within your current organization. In a recent Robert Half survey, 55% of U.S. business leaders said AI is reshaping succession pipelines by speeding up promotions for workers with AI skills. Find out more about the importance of AI literacy and how you can build it.3. Use performance feedback to inform 2026 career plansIf you’re weighing what comes next for you professionally in 2026, feedback from recent performance reviews—or other career conversations with your manager—can be a helpful guide. Use that input to help inform your plans by:Noting recurring themes around your strengths and development areasIdentifying which parts of your role you find most fulfilling—and which you’d like to changeConsidering how well your current position aligns with your career objectivesIf you can visualize a promising future where you are, use these insights to start a discussion with your employer about learning opportunities, expanded responsibilities or a path to advancement. If you later decide to explore roles elsewhere, apply the same lens when evaluating total compensation, including growth potential, work flexibility and company culture.You may also find that a contract or project-based role can fit into your longer-term plan, giving you a way to build skills, stay active and expand your network as you work toward your next step.Looking for full-time or contract jobs? Search our current listings.
Keep pace with U.S. labor market trends in 2026—with Robert Half
Go to Labor Market OverviewHiring and employment trends are always changing. Whether you’re an employer, employed professional or a job seeker, Robert Half’s Labor Market Overview can help you stay informed about how the labor market is evolving in 2026.Visit the page now to find research on specialized skills in demand, hybrid and remote work trends by profession, industries hiring, and more.
