For the second straight month, the Bureau of Labor Statistics (BLS) did not release its monthly jobs report or its Job Openings and Labor Turnover Survey (JOLTS) data due to the federal government shutdown, which ended on Nov. 12. This Labor Market Update from Robert Half is based on private and weekly measures that show a mixed labor market for October, with reports of some hiring, as well as significant payroll contraction, plus a growing sense of confidence among many business leaders.Data from payroll solutions firm ADP highlights the month’s unevenness. The ADP National Employment Report for October showed employers in the private sector added 42,000 jobs. However, in the NER Pulse report released Nov. 11, ADP estimated that, for the four weeks ending Oct. 25, private employers shed about 11,250 jobs per week. (Note: That weekly report is preliminary and can change, which helps to explain why one view shows a gain, while another suggests a cooler finish for the month.)Meanwhile, for many employers in a hiring mode, the struggle to find skilled professionals in the labor market persists. NFIB’s October jobs report found that nearly a third (32%) of small business owners had job openings they could not staff in October, unchanged for the second consecutive month. The NFIB also notes that before August 2025, the last time unstaffed job openings hit 32% was in December 2020.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.
On the flip side: early signs of renewed confidence emerging
While data from various sources are telling different stories about the state of the U.S. labor market, the broader picture points to an environment that is cautious but far from stagnant. Two recent Federal Reserve rate cuts may help ease hiring headwinds into year-end, and signs of renewed confidence in the economy are beginning to appear.Chief Executive’s latest CEO Confidence Index backs that trend, rising more than 10% in early October to 5.7 out of 10—its second-highest level of the year. CEOs’ outlook improved from “weak” to “good,” fueled by expectations of lower interest rates, potential deregulation and solid sector performance.A recent Goldman Sachs survey of 10,000 small businesses in the U.S. found that 74% of small business owners plan to grow their business next year—and 41% expect to create jobs as a result. However, similar to NFIB’s survey findings, many small business owners also cited difficulty finding and retaining qualified employees to help support their growth plans.Other employer surveys and Robert Half recruiter insights on labor market trends also point to a potential increase in hiring appetite heading into Q4 and early Q1. Even with overall hiring subdued, the demand for skilled talent remains robust in fields such as finance and accounting, human resources (HR), technology, legal, and marketing and creative. Research for the 2026 Salary Guide From Robert Half found that 84% of hiring managers are prepared to offer higher pay to candidates with specialized skills—although 74% still report concerns about meeting candidates’ salary expectations.Professionals, meanwhile, are weighing total compensation more carefully before making career moves. When they do explore new opportunities, work flexibility—particularly remote options—and how employers design total compensation packages often guide their final decisions. This trend is extending hiring timelines and prompting more selective job searches, particularly among highly skilled and experienced professionals.
What the latest labor market trends mean for employers
Heading into 2026, employers can compete effectively for skilled talent and keep work moving forward by focusing on the following three areas:Staffing high-impact roles: Define the critical problems your business needs to solve in Q4 and Q1 and match them with the right specialized skills. Do you need controllers and financial planning and analysis (FP&A) specialists to steady forecasting? HR professionals to improve and accelerate hiring processes? Cloud engineers to advance digital transformation initiatives? The key is prioritizing roles that can directly drive desired business outcomes.Getting clear on compensation: From hiring to performance reviews, be transparent with employees about how the company sets salary ranges, and how bonuses are funded and earned. This is especially important coming off a softer 2024 bonus cycle, when nearly half (46%) of U.S. workers received a smaller—or no—bonus, according to Robert Half’s research. A lack of clarity could lead to retention risks, especially since 53% of workers say they’d switch jobs for stronger bonus incentives.Keeping flexibility in focus: Work flexibility remains a top decision factor for many job seekers, so be upfront about policies. If you offer hybrid roles, be specific about why on-site work matters to the company and when it’s expected. Know that many professionals today are also open to flexible work in the form of contract or interim roles, providing another pipeline of skilled talent for your business. According to Robert Half’s research, 67% of companies are increasing contract hiring through the end of 2025 to meet project deadlines, manage costs and reduce burnout.Need to hire professionals with specialized skills? Learn about Robert Half’s talent solutions.
What the latest labor market trends mean for job seekers
Whether you’re hitting the pause button on career moves until 2026 or actively navigating the market now, taking a strategic approach to your job search can help improve your chances of success. Consider these tips:Lead with proof of skill and impact: Many employers are prioritizing candidates who can demonstrate how their work has made a difference. Build a concise “impact brief” for each opportunity, with 3 to 5 bullets that quantify outcomes such as reducing risk, saving time, driving revenue or improving team efficiency. Where possible, connect those results to business priorities like profitability, compliance or customer satisfaction. Use these examples in interviews or compensation discussions to highlight your value and the return on investment you can bring.Look beyond salary when evaluating opportunities: Robert Half’s research found that 88% of professionals feel confident negotiating salary offers during their job search. The most successful candidates come prepared with a clear idea of the compensation they want to earn, and data to back up why they should receive it. However, when assessing a new role, it is also important to think beyond the paycheck. Review the full package on offer—bonuses, incentives, benefits, flexibility and professional development—and weigh how each element supports your goals.Open the door to interim and contract jobs: These positions allow you to build new skills, gain experience across industries and expand your professional network. They also help you stay visible and keep your career moving forward while you’re searching for full-time opportunities—and hiring processes are taking longer. Many professionals find that short-term projects and assignments often lead to lasting relationships and, in some cases, permanent roles.Looking for full-time or contract jobs? Search our current listings.
Finding direction in a changing labor market
The labor market is moving, albeit slowly and unevenly. It also remains competitive.For employers, now is the time to act with precision and purpose. Move swiftly and decisively to secure top hires when you identify them and engage highly skilled resources where needed to keep critical initiatives on track while getting a jump on your 2026 priorities.For job seekers, strategy and focus are essential to success. Target industries and roles where your skills are needed most, lead with measurable results, and weigh the value of total compensation—including work flexibility and growth potential—when deciding on your next career step.
Get insight into labor market trends—from Robert Half
Visit Labor Market OverviewWhether you’re an employer, employee or a job seeker, Robert Half’s Labor Market Overview page can help you stay informed about the latest hiring and employment trends. You’ll find research on specialized skills in demand, hybrid and remote work trends by professional field, industries hiring now, and more.
