Looking for a job in 2026? Here's why hiring feels frozen - and what to do next

"The job market in 2026 is shaping up to be a challenging one for job hunters. While we may see a modest increase, job opportunities will likely remain flat, and economists predict a slight uptick in unemployment. The most recent unemployment rate is 4.4%, according to U.S. Bureau of Labor Statistics data released on January 9, 2026, reflecting conditions in December 2025. While that figure offers a snapshot of the national economy, it masks wide variation by industry and geographic region."

"Labor shortages persist in construction and healthcare, giving job seekers in those fields better odds. In construction, current immigration policies have further reduced the available workforce. Healthcare employers continue to struggle to meet demand. Elsewhere, AI adoption is eliminating or reshaping some administrative and entry-level roles, especially at larger companies. Smaller companies, which tend to be less AI-savvy, may offer more opportunities for early-career workers."

"One defining trend of 2026 is "job hugging" - workers who choose to remain in their current roles rather than risk a move. What you know versus what you don't know is a common sentiment outweighing career exploration for many employees, and some job hunters have put their searches on hold until conditions improve. Networking still matters Even in a slow market, savvy job hunters follow the approach of ABN: Always Be Networking."

The national unemployment rate stood at 4.4% in December 2025, with significant variation across industries and regions. Labor shortages remain acute in construction and healthcare, partly driven by immigration policy constraints and sustained demand. AI adoption is eliminating or reshaping administrative and entry-level roles at larger firms, while smaller, less AI-driven employers may provide more entry-level opportunities. Many workers are opting to remain in current roles—"job hugging"—due to uncertainty, reducing job mobility. Networking, up-to-date resumes and LinkedIn profiles, and targeted skills-building increase chances for job seekers in a slower market.

Read at Boston.com