The July jobs report from the Bureau of Labor Statistics (BLS) showed weaker-than-expected job growth. U.S. employers shed 23,000 jobs last month, and payroll gains for May and June were revised down by a combined 103,000 jobs. The national unemployment rate, however, edged down to 4.1%, while unemployment among college-degreed workers remained at 2.7%.
Bright spots in the July jobs report include notable gains in private education and healthcare (+25,000 jobs), construction (+22,000 jobs), and professional and business services (+18,000 jobs), including 3,400 roles in temporary help services.
Other findings point to continued hiring, with a majority of employers expecting to add staff in the months ahead. In its latest JOLTS report, the BLS notes that job openings held at 7.4 million in June, while hires edged up to 5.3 million. Meanwhile, in a Robert Half survey, 66% of U.S. hiring managers say they plan to increase permanent hiring in the second half of 2026, up from 60% in the first half of the year and 57% a year ago.
See our coverage of the July jobs report
What’s driving hiring needs in a slower market?
Hiring needs can persist even when job growth slows because many employers still need to staff priority initiatives, add skills they don’t have in-house or replace employees who leave. According to Robert Half research, permanent hiring plans are particularly strong in technology, healthcare, and finance and accounting, while 58% of hiring managers say finding skilled talent is harder than it was a year ago.
Turnover can create additional openings. Another recent Robert Half survey finds that 46% of U.S. professionals plan to look for a new job in the second half of 2026, up from 38% in the first half of the year and 27% one year ago. As workers change jobs, employers may need to recruit external candidates to replace departing employees or promote talent from within, creating new openings without necessarily growing headcount.
Get more insight into what’s next for the labor market in 2026—and how to prepare.
How employers can respond to labor market trends
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Even as job growth slows, employers still face important workforce decisions: which roles to staff now to keep critical work on track, how to make strong hiring decisions and how to prepare for turnover that could create new hiring needs. These tips can help:
1. Prioritize hiring based on business impact
Economic uncertainty can make organizations cautious about adding staff. But leaving key roles open can also present risk. In a Robert Half survey, 63% of employers say they’ve experienced significant project delays because they lacked staff with the necessary skills, while 48% have canceled projects.
Look at where open roles or skills gaps might already be affecting revenue, customer service, regulatory requirements, technology initiatives, productivity or other priorities. Use those business impacts to inform your hiring needs. For example, a role tied directly to revenue, compliance, customer delivery or a time-sensitive initiative may demand faster action than one where work can be redistributed without significant disruption. Also consider whether an identified need calls for a permanent hire, contract talent or another staffing approach.
Need help with hiring skilled professionals? Contact us.
2. Clearly define what a role requires to evaluate candidates more effectively
Robert Half research finds that 1 in 3 managers have made a bad hire in the past 2 years, and 3 in 5 say a hiring mistake contributed to other employees leaving. Poor assessment of technical skills, overlooked weaknesses in soft skills and unclear communication about job duties are among the most common reasons employers cite for making bad hiring decisions.
Before you launch a candidate search, establish a clear understanding of what the open role actually requires. Separate essential capabilities from those that could be developed later and use interviews and skills assessments to explore how candidates have applied their knowledge in real-world situations. This process provides a strong foundation for evaluating candidates—and can help reduce the risk of a costly hiring mistake. It can also accelerate hiring by helping you identify high-potential talent.
Learn about 2 approaches to calculating the cost of a bad hire for your business.
3. Identify where employee turnover would hurt the business most
Workforce plans also need to account for the possibility that critical employees may leave in the coming months as hiring activity picks up. Focus first on employees in hard-to-replace roles and those whose next career move within the organization may not be obvious. Talk with them about what they want to take on next, where they want to grow and how they see their career evolving at the company.
Also identify roles where a departure would create a significant gap in skills or institutional knowledge. Succession planning, cross-training and knowledge sharing can help reduce disruption if a valued team member leaves—and may highlight employees ready to take on greater responsibility.
Find out about trends in succession and talent pipeline planning in Robert Half’s latest Demand for Skilled Talent report.
How job seekers can navigate the current labor market effectively
Slower job growth can make for a more competitive and uneven job market. But opportunities are still emerging as employers respond to changing business needs, replace departing workers and seek specialized skills. These strategies can help professionals surface leads—and stand out with employers.
1. Focus your search where hiring demand is strongest
Robert Half research finds technology, healthcare, and finance and accounting are top among the specializations showing strong demand for permanent hires. Many employers also report difficulty finding professionals with industry-specific knowledge, software proficiency and leadership abilities.
It can also be helpful to look for patterns in the opportunities you’re seeing advertised, such as recurring job titles, skills, certifications, technologies or business priorities. That information can help you narrow your search to the roles and capabilities employers are seeking most often.
See more data from Robert Half on employers’ hiring plans for the second half of 2026, including by location and specialization.
2. Turn your experience into evidence
In a cautious hiring environment, employers may be less willing to infer what you can do from a job title or list of responsibilities. Make the connection for them.
Choose to highlight examples of past achievements most relevant to the role you’re pursuing. Be ready to explain the challenge you faced, the judgment or expertise you brought to the situation and what happened as a result. Examples might include improving a business process, implementing new technology, managing a difficult client issue or helping a team navigate change.
Transferable skills and experience are also compelling when you can tie them directly to an employer’s needs. For instance, you may not have worked in the same industry or used the exact software listed in the job posting, but you could still emphasize how you’ve learned new systems quickly, applied related knowledge or handled similar challenges in another setting.
Read more about the advantage of having transferable skills in today’s labor market.
3. Stay alert to job openings created by turnover
Not every job opportunity arises from planned workforce expansion. Employee departures, internal moves and new projects can create openings throughout the year, even at organizations cautious about increasing headcount. Be sure to stay in touch with former colleagues, recruiters, professional associations and others in your field. Those relationships could help you learn about openings that may not yet be widely advertised—and understand what employers are looking for.
Keep an open mind about where your next opportunity may come from, too. An adjacent role, contract assignment or position with a smaller organization could offer new experience, expanded responsibilities or a path to your next career move.
Robert Half recruiters can help you find your next job. Learn more.
Put the latest labor market trends in context
Go to Labor Market Overview
Monthly job growth is only one measure of labor market conditions. Looking at the numbers alongside hiring demand, job openings and employee turnover can give employers and job seekers a more complete view of how the market is changing—and where needs and opportunities are emerging.
Robert Half’s Labor Market Overview brings together the latest employment data, hiring trends and workforce insights to help employers and job seekers stay current as conditions change.
