What the job market's 'freeze' means for workers and employers in 2026

As 2025 drew to a close, openings on Indeed, the world's largest job site¹, remained about 5% above pre-pandemic levels, according to the company. Yet that positive figure masked a labor market frozen in place, as employers delayed hiring to gauge the impact of tariffs, immigration policies, and other factors. While some sectors are thriving, others are pulling back.

As a result, job seekers and employers alike are still scrambling for a secure footing. But within the shifts 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 offer opportunities," predicts Svenja Gudell, chief economist at Indeed. "For job seekers who focus on in‑demand fields and stay flexible — whether by skill, sector, or region — meaningful prospects remain."

In 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.

State of the market

Indeed connects more than 645 million job seekers² with opportunities from over 3.3 million employers worldwide. That scale allows Indeed to track 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. These insights are compiled in regular reports by Indeed's in-house economists.

For example, Indeed's 2026 Jobs & Hiring Trends Report predicts economic growth in 2026 will remain positive yet "anemic," testing the job market's resilience to economic uncertainties.³

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

The report also shows growth differing across the market, with job postings looking very different across sectors. For example, healthcare now accounts for more than half of all job growth, while the number of technology postings is a third lower than it was in early 2020.

"When things are uncertain, businesses have a harder time making decisions," says Laura Ullrich, director of economic research and a coauthor of the report. "They might slow down decision-making. They may choose not to hire while they wait. And so that does lead to this low-hire, low-fire environment that we continue to see."⁴

AI: disruptor or enabler?

The question on many job seekers' minds 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, only 0.7% of skills are currently considered "very likely" to be fully replaced by GenAI, according to Indeed.⁵ At the start of 2026, Indeed data showed that less than 5% of all jobs on Indeed even mentioned AI, which, while growing quickly, remains relatively low.

AI's potential impact is most visible in tech roles. Indeed's data shows that the share of tech job postings requiring at least 5 years of experience is growing⁶, even as experience requirements are softening in other areas. This could mean AI is doing more entry-level tech work, requiring higher-level human workers to oversee the output. It could also simply reflect broader economic conditions in which hiring overall in tech, for both junior and senior roles, is currently limited.

For nursing and other healthcare roles, AI's impact remains more limited. Much of the core work — such as physical patient care, roles requiring emotional intelligence, and on-the-spot decisions — falls into the "minimal transformation" category. Still, AI is poised to reshape administrative tasks, communication support, and documentation, potentially freeing caregivers to spend more time with patients.

Strategies for navigating 2026

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

Ullrich advises job seekers to broaden their outlook. "You may have a hard time starting in the tech sector, for example, right now, but there are tech positions open in healthcare and other sectors," she says.⁷ Geography matters too. Many smaller metropolitan areas, particularly in the Sunbelt and Mountain West, show higher job posting levels than major coastal cities.

For employers, the frozen market presents both challenges and opportunities. In sectors and locations where talent remains tight —such as healthcare, civil engineering, construction, and many smaller cities — maintaining competitive compensation and offering flexibility and career development opportunities will be essential. In areas where candidate volume has increased, employers have an 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 Gudell.

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 & Hiring Trends Report at Indeed.com.

This post was created by Insider Studios with Indeed.

_{1 Comscore, Total Visits, March 2024}

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

₃_{2026 US Jobs & Hiring Trends Report: How to Find Stability in Uncertainty, Indeed}

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

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

₆_{Experience Requirements Have Tightened Amid the Tech Hiring Freeze, Indeed, July 30,2025}

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

The post What the job market's 'freeze' means for workers and employers in 2026 appeared first on Business Insider