What a job market 'freeze' in 2026 means for the workforce

As 2025 approaches, new opportunities are opening up on Indeed, the world's largest job site¹That remained about 5% above pre-pandemic levels, according to the company. Yet that positive data unsettled the labor market, as employers delayed hiring to weigh the impact of tariffs, immigration policies and other factors. While some sectors are thriving, others are retreating.

As a result, job seekers and employers alike are still struggling to secure status. But within the changes lie opportunities for both.

“For employers who plan carefully, pay attention to local conditions, and invest in talent where demand remains strong, 2026 should still provide opportunities,” predicts Svenja Gudell, chief economist at Indeed. “For job seekers who focus on in-demand areas and remain flexible – whether by skill, sector or region – meaningful opportunities remain.”

At a moment of global uncertainty, the right strategies can give employers and job seekers a competitive edge, and data is the compass that guides them forward.

market conditions

Indeed connects over 645 million job seekers² With opportunities from over 3.3 million employers worldwide. This scale allows us to track truly real-time trends in how people search for jobs, how employers compete for talent, and the impact of technology, including AI, on the world of work. This information is compiled into regular reports by Indeed's in-house economists.

For example, Indeed's 2026 Jobs and Hiring Trends Report Economic growth is projected to remain positive yet “anemic” in 2026, which will test the job market's resilience to economic uncertainties.³

The report describes the labor market as “frozen” in 2025, with employers hesitant to expand their workforce amid questions about immigration, tariffs and monetary policy — yet not worried enough to make significant layoffs.

The report also shows that growth varied across the market, with job postings looking very different across regions. For example, healthcare now accounts for more than half of total job growth, while the number of technology postings is one-third less than at the beginning of 2020.

“When things are uncertain, businesses have a hard time making decisions,” says Laura Ulrich, director of economic research and co-author of the report. “They may slow down decision-making. They may choose not to hire while they wait. And that creates this low-hire, low-fire environment that we continue to see.”⁴

AI: Disruptor or Enabler?

The question on the minds of many job seekers is whether artificial intelligence will eliminate jobs or create new opportunities.

The good news for workers is that while many jobs are undergoing AI-driven transformation, according to Indeed, only 0.7% of skills are currently considered “very likely” to be completely replaced by GenAI.⁵ As of early 2026, Indeed data showed that AI was mentioned in less than 5% of all jobs on Indeed, which remains relatively low despite rapid growth.

The potential impact of AI is most visible in technical roles. Data from Indeed shows the share of tech job postings requiring at least 5 years of experience is growing⁶Even though experience requirements are relaxing in other fields. This could mean that AI is doing more entry-level technical work that requires higher-level human workers to monitor output. This may also reflect macroeconomic conditions in which overall hiring in the tech sector for both junior and senior roles is currently limited.

For nursing and other health care roles, AI's impact is more limited. Most core tasks – such as physical patient care, roles requiring emotional intelligence, and on-the-spot decisions – fall into the “minimal change” category. Still, AI is poised to reshape administrative tasks, communication support, and documentation, potentially freeing up caregivers to spend more time with patients.

Strategies to navigate 2026

For both employers and job seekers, success in 2026 will depend on flexibility and strategic thinking driven by data.

Ulrich advises job seekers to broaden their perspective. “For example, you might have a hard time getting started in a tech field right now, but there are tech positions open in healthcare and other fields,” she says.⁷ Geography also matters. Many smaller metropolitan areas, particularly in the Sunbelt and Mountain West, have higher levels of job postings than major coastal cities.

For employers, frozen markets present both challenges and opportunities. In sectors and locations where there is a talent shortage – such as healthcare, civil engineering, construction and many small cities – maintaining competitive compensation and offering flexibility and career development opportunities will be essential. In areas where the number of candidates has increased, employers have the opportunity to be more selective.

“For many employers and job seekers, the coming year will be defined by subtle changes rather than dramatic upheaval,” says Goodell.

Those changes underscore the importance of data-driven decision making. Real-time labor market indicators, such as those provided by Indeed, can help both employers and job seekers identify opportunities, in-demand skills and how local conditions differ from national trends.

Read Indeed's 2026 US Jobs and Hiring Trends report here actually.com.

This post was created by Insider Studio Actually with.

_{1 comScore, total visits, March 2024}

_{2 Indeed Data (worldwide), job seeker accounts that have a unique, verified email address}

_{3 2026 US Jobs and Hiring Trends Report: How to Really Find Stability in Uncertainty}

_{4 CNN This Morning, CNN, November 20, 2025}

_{5 AI at Work Report 2025: How GenAI is rewiring the DNA of jobs}

_{6 In fact, experience requirements have become stricter amid a tech hiring freeze on July 30,2025}

_{7 CNN This Morning, CNN, November 20, 2025}