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The May jobs report delivered a stronger-than-expected result, showing U.S. employers added 172,000 jobs, according to the Bureau of Labor Statistics (BLS). That figure is well above economists’ projections and marks the first time since early 2024 that the economy has seen 3 consecutive months of job gains above 100,000. The BLS also revised March and April payrolls higher by a combined 93,000 jobs.
Those numbers point to a labor market that has remained resilient despite ongoing economic uncertainty and market volatility. However, the recent pattern of job growth doesn’t erase the persistent hiring challenges many organizations face, including small and midsize firms. NFIB data shows 34% of small business owners had job openings they could not staff in April, and among owners hiring or trying to hire, 87% reported few or no qualified applicants.
The May jobs report also shows national unemployment held steady at 4.3%, while unemployment for college-degreed professionals declined to 2.7%, underscoring continued competition for skilled talent. In its latest Job Openings and Labor Turnover Summary, the BLS reports job openings rose to 7.6 million in April, even as hires declined to 5.1 million.
The data suggests many employers are still seeking talent but remain selective in hiring. As Robert Half’s newly updated Demand for Skilled Talent report notes, many organizations are thinking less about how many people to hire and more about who they need, why they need them and how those roles support growth, productivity and, increasingly, AI adoption.
Read more about U.S. hiring plans and challenges for the second half of 2026 in the Demand for Skilled Talent report.
AI is changing workforce strategies, but human expertise still matters
AI is becoming a bigger part of how work gets done, and it’s also influencing employers’ hiring plans. In a Robert Half survey, 51% of business leaders say their department’s use of AI tools will drive additional hiring in 2026, and 54% predict AI will fuel a net increase in jobs at their company over the next 2 years.
At the same time, there are signs some employers have moved too quickly to make AI-driven job reductions. Robert Half research found that more than 3 in 10 U.S. hiring managers who eliminated positions after their organization implemented AI later had to add those roles, or very similar ones, back.
These “AI correction hires” underscore the risk of relying too heavily on AI and automation in roles where human expertise is still needed. Hiring managers surveyed said the positions they reinstated:
Required institutional knowledge or context AI couldn’t replace: 40%Involved relationship management AI couldn’t replicate: 39%Were needed as business demand increased: 39%Required more human oversight and quality control than expected: 38%
Other factors for AI correction hires include inconsistent AI adoption across teams, smaller-than-expected productivity gains, risk or compliance concerns, and employee burnout or workload strain among remaining staff. The broader takeaway: AI can help improve efficiency, but it still depends on employees who understand the business and can apply judgment, manage relationships, validate outputs and know when human review is needed.
See more data on how companies are using AI—and how the technology is changing career paths.
Tips for employers navigating the labor market in the AI era
AI adoption can help organizations improve efficiency, redesign workflows and give employees more time for higher-value work. But in a selective labor market where skilled talent remains difficult to find, employers need to think carefully about how AI changes—not eliminates—their talent needs. Consider these tips for using AI thoughtfully while protecting quality, productivity and team performance.
1. Reassess how AI changes the roles your business needs
When skilled talent is difficult to find, it can be tempting to look at AI as a way to reduce the need for certain positions. But some responsibilities depend heavily on institutional knowledge, business context, relationship management, judgment or risk awareness.
Before eliminating or redesigning a role, review the full scope of the work and identify which responsibilities AI can support and which still require human ownership. Pay close attention to areas involving stakeholder communication, compliance review, client service or knowledge of how the organization operates. That assessment can help employers make more strategic staffing decisions and avoid creating gaps in the skills, context or oversight the business still needs.
2. Account for the human review AI-enabled work requires
AI can help accelerate certain tasks, but it doesn’t eliminate the need to review, refine and validate outputs. A separate Robert Half survey found that when employees use generative AI, they spend an average of 34% of their time on a task reviewing for accuracy and refining the final deliverable.
Consider the need for review work in workforce planning. Identify where AI output needs human oversight and what skills are required to provide it. Employers should assess whether their teams have the analytical judgment, business knowledge, compliance awareness, editing skills or subject matter expertise needed to review AI-generated work effectively—or whether they need to train current employees or hire for added expertise.
Learn about the role of effective workforce planning in AI governance.
3. Strengthen hiring processes for an AI-influenced candidate market
AI is also changing the hiring process itself. AI-generated resumes and cover letters can make applications more polished, but they may also make it harder for employers to evaluate whether candidates have the skills, experience and judgment required for the role. That challenge can add risk in a market where hiring mistakes are already costly.
Make the process more structured before candidate screening begins. Clarify must-have skills, responsibilities and success measures, then use consistent interview questions that ask candidates to explain specific examples of past work, decision making and AI use. Practical assessments can also help confirm skills when appropriate.
Whether you need to hire permanent or contract talent, Robert Half’s recruiters can help. Find out more.
Tips for candidates navigating the labor market in the AI era
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For job seekers, a stronger-than-expected jobs report doesn’t necessarily mean an easier search. Employers are still making careful hiring decisions, and many are paying closer attention to whether candidates can bring the right mix of technical skills, business judgment and AI literacy to the role.
AI is part of that equation. Employers are looking for people who can use AI effectively and responsibly, not just mention it as a skill. These tips can help job seekers show they understand both the possibilities and the limits of AI in the workplace.
1. Connect your AI skills to business value
AI literacy is becoming more valuable across many professional roles, but many employers are looking for more than basic familiarity with common tools. To stand out, candidates need to show how they can apply AI to help solve business problems, improve workflows or support better decision making.
In resumes, LinkedIn profiles and interviews, be ready to explain how AI supports your work. That may include using AI to summarize information, draft first-pass materials, analyze data, brainstorm ideas or improve workflow efficiency. Employers may ask about specific tools, prompts, review steps and outcomes, so be prepared to discuss your process and how AI helped you produce stronger results.
2. Practice writing stronger prompts
Prompt writing is one practical way to build and demonstrate AI literacy. Employers may not expect every candidate to be an AI expert, but many value professionals who can work collaboratively with AI and ask clear questions, provide useful context and guide tools toward delivering more relevant results.
When using AI in your job search or current role, practice writing prompts specific to the task, audience, desired format and constraints. Strong prompting is only one aspect of AI literacy, though. You must also be adept at reviewing responses, investigating and citing sources, correcting what’s inaccurate and refining AI outputs so they’re defensible and meet expected standards.
Find out more about the industries hiring now—and why AI literacy can provide an edge in your job search.
3. Emphasize the judgment and people skills AI can’t replace
AI can support many tasks, but Robert Half research on AI correction hires shows employers still need people who can bring context, relationship management, oversight and quality control to the work. Candidates can strengthen their case by offering examples of communication, collaboration, client service, problem-solving, adaptability, risk awareness and sound judgment alongside technical skills.
Offering concrete examples can help. For example, instead of telling a hiring manager that you’re a strong communicator, describe a time you helped stakeholders align on a project. If you’re detail-oriented, explain how you caught an error, improved a process or helped reduce risk. Employers want to understand not only what you know, but how you apply that knowledge when the work is complex or high-stakes.
Searching for a job? Learn how Robert Half can help you uncover new career opportunities.
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View Labor Market Overview
Want more data and insights on how the U.S. hiring environment is evolving in 2026? Visit Robert Half’s Labor Market Overview page to get a snapshot view of current hiring trends and access our expanded coverage on industries hiring, remote work statistics and trends, and more.
