November offered yet another glimpse into the year’s split-screen economy, with steady gains in some corners of the U.S. labor market and more cautious hiring in others.According to the November jobs report from the Bureau of Labor Statistics (BLS), employers added 64,000 jobs last month—surpassing economists’ expectations. Most of the momentum came from the private education and health services sector, which once again served as a key driver of overall job growth in the nation.The delayed release of the November jobs report on Dec. 16 also represented a catch-up moment for the BLS. Because of the recent federal government shutdown, the agency released November’s job numbers alongside partial data for October and revised estimates for August and September.Taken together, these updates form a clearer picture of the fall labor market. October saw an estimated net loss of 105,000 jobs as federal cutbacks took effect, even as the private sector added 52,000 roles. And job gains reported in earlier months were revised downward by a combined 33,000, reinforcing the idea that many employers have been tapping the brakes on hiring for some time.
A cautious labor market poised to see more movement in early 2026
The unemployment rate rose to 4.6% in November, and unemployment for college-degreed workers also ticked up slightly to 2.9%. Those figures point to a loosening labor market, but they don’t change the underlying dynamics many employers continue to face.Separate data from the BLS shows job openings in October held steady at 7.7 million. But even with fewer workers voluntarily quitting their jobs, many organizations still report difficulty finding candidates with the skills and experience needed for specialized roles.Small business data underscores this tension in the labor market. NFIB’s November jobs report found that 33% of small business owners have open roles they cannot staff, and among those hiring, 89% report that candidates with requisite skills remain scarce. However, despite these challenges, NFIB’s research also shows that 19% of small business owners plan to add jobs in the next 3 months.This move to expand payrolls could prove timely. Robert Half’s research shows that nearly 4 in 10 employed U.S. workers plan to look for a new job in the first half of 2026, up from 29% a year ago. This uptick—driven primarily by the desire for better benefits, career growth or competitive pay—suggests the labor market could soon see more movement early next year, even as hiring remains selective.Leading a small business? See Robert Half’s Staffing for Small Businesses page for research and tips that can help you stay competitive in today’s labor market.
What the latest labor market trends mean for employers
As employers plan for 2026, shifting dynamics in the labor market call for a more intentional approach to workforce planning and talent strategy. Here are 3 priorities to focus on in the months ahead.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 teams likely need support. Look beyond individual employee 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 team truly 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. Clarifying those priorities now helps ensure you’re hiring 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 shows that 84% of hiring managers are offering higher compensation for candidates with in-demand capabilities.To compete effectively for top talent, be sure to benchmark compensation levels regularly and highlight perks and benefits that matter most to your workforce. Also, be explicit about work flexibility, whether you offer hybrid options, adjusted hours or role-specific arrangements.Flexibility in your staffing approach can also be an advantage in this tight labor market. Highly skilled contract talent can help you manage peak workloads, support system implementations and protect core teams from burnout while providing space for a measured approach to permanent hiring.Learn more about the benefits of a flexible staffing strategy.3. Refresh roles and hiring practices for an AI-enabled workforceAI adoption is changing how work gets done—and what many employers look for when hiring. To adapt, update job descriptions to reflect where AI is already part of the job, ask candidates to talk through how they’ve used these tools in real situations and consider simple exercises that show how they approach problems and check their work.Being clear about what “AI-ready” actually means for the business can make it easier to spot candidates who will add value quickly as teams—and technology—evolve.
What the latest labor market trends mean for job seekers
Get the guideToday’s labor market looks different than it did a year ago. Employers are more intentional about talent recruitment, job expectations are evolving and competition varies widely by role. If you’re thinking about exploring new opportunities in 2026, here are 3 practical ways to get ready.1. Lead with the strengths that set you apartDemand remains strong for professionals with specialized skills, particularly in professions such as finance and accounting, technology and nonclinical healthcare. The challenge is standing out as employers take a more deliberate approach to hiring. These tips can help:In your resume and LinkedIn profile, lead with skills and accomplishments that are in high demand in your fieldTranslate responsibilities into results to show hiring managers how you improved efficiency, supported growth or reduced risk in previous rolesTailor your job application materials to each role so the most relevant experience is easy to spotSee Robert Half’s Job Search Strategies Guide for more tips on navigating the current job market.
2. Build practical AI skills you can promote with confidenceAI is becoming part of what “skilled” means for many roles across industries. Increasingly, employers are looking for professionals who know how to use AI strategically to help them work faster and produce better results. With that expectation in mind, aim to:Identify the AI tools most relevant to your work, whether that’s a generative AI assistant, coding copilot, analytics feature or automation toolApply AI to real tasks, such as document drafting, summarizing, generating ideas or checking for errors, and refine your resultsIdentify a few examples where AI helped you save time, improve quality or solve a problemThese small steps can show employers that you have a strong understanding of how to use AI responsibly and effectively in your day-to-day work.3. Use performance feedback to inform 2026 career plansIf you’re weighing what comes next in 2026, feedback from recent performance reviews or other career conversations with your employer can be a helpful guide. Use that input to clarify your direction 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 conversation with your manager 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, particularly 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 while you work toward your next step.Looking for full-time or contract jobs? Search our current listings.
Stay on top of labor market trends in the new year—with Robert Half
Go to Labor Market OverviewIn the first half of 2026, expect to see a mix of continued selectivity and renewed movement in the labor market. Employers who plan thoughtfully—and stay open to new ways of building capability in their workforce—will be better positioned to compete for talent. And professionals who proactively cultivate in-demand skills and approach their next steps with intention will be most likely find job search success.Whether you’re an employer, employed professional or a job seeker, Robert Half’s Labor Market Overview can help you stay informed about the latest hiring and employment trends in 2026. Visit the page now to find research on specialized skills in demand, hybrid and remote work trends by profession, industries hiring now, and more.
