Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
As the U.S. economy moves into 2026, the labor market is entering a period that feels painfully familiar and increasingly selective. After years of post-pandemic turbulence, hiring has cooled, wage growth has slowed, and inflation has outpaced pay for many workers.
While jobs reports have shown the national job market stuck in a “no hire, no fire” pattern for months on end, for job seekers and employers alike, the landscape is more nuanced. Job opportunities are concentrated in certain industries and regions, while other sectors face stagnation and growing competition.
Indeed’s 2026 U.S. Jobs & Hiring Trends Report offers a detailed look at how these trends are playing out. Drawing on real-time job postings, wage data, and historical economic patterns, the report provides insight into what the next year may hold — and why the experience of the labor market will vary widely depending on who you are, what you do, and where you live.
Job Openings Stabilize, But Growth Slows
According to the report, overall job openings are expected to remain roughly where they are today, with unemployment nudging slightly higher but staying in historically low territory. GDP growth is projected to remain positive, though modest, averaging around 1.8% in the consensus scenario.
High-income households continue to drive much of the economy through elevated spending, while wage growth for low- and middle-income roles has slowed, leaving many workers feeling the squeeze as inflation outpaces pay increases.
Healthcare Leads, Other Sectors Struggle
Job growth in 2025 was heavily concentrated in healthcare, which accounted for nearly half of all new roles despite representing just 11% of total employment.
Meanwhile, sectors such as media, scientific research, and tech are struggling, with job postings falling well below pre-pandemic levels. Even entry-level roles are affected, as overall hiring has slowed, creating a tougher market for young workers and career switchers outside high-demand fields.
Immigration Changes Tighten Labor Supply
Changes to U.S. immigration policy are having a significant impact on both low- and high-skilled labor. Stricter border enforcement and the termination of temporary work programs have reduced the number of foreign workers available in industries such as construction, hospitality, and agriculture.
Meanwhile, rising visa costs and declining international student enrollment threaten the pipeline of STEM professionals entering the workforce. Employers remain willing to sponsor visas, but foreign interest in U.S. jobs has dropped to a near five-year low, creating tighter labor conditions across multiple sectors.
Skill Mismatches Are Widening
The report also brings attention to a growing disconnect between available jobs and worker skills. Higher-skilled roles in fields like finance and professional services are seeing fewer applicants, while lower-skilled positions in food service, sanitation, and personal care are attracting more interest.
Workers in oversupplied sectors are spending longer searching for suitable roles, while employers are being more selective, reflecting the uneven pressures of the labor market.
Federal Spending and Hiring Influence the Market
Public sector employment reversed sharply in 2025, shedding tens of thousands of federal and state jobs. Cuts in government funding have also affected companies reliant on government contracts, particularly in scientific research.
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While federal employment makes up a small share of total jobs, the ripple effects on broader economic activity are significant, and future funding decisions will continue to influence hiring trends in 2026.
Regional Differences Shape Opportunities
Location matters more than ever. Job posting levels in smaller and mid-size metro areas remain strong, while larger coastal cities with slower population growth are seeing weaker demand.
For job seekers, local conditions matter as much as national trends, with opportunities concentrated where industries and populations are expanding.
A Cautious Outlook for 2026
Overall, 2026 is likely to continue the “low-hire, low-fire” environment that has defined recent years. Employers and job seekers will need to adapt to a slower, more selective market where opportunities are concentrated in certain industries, regions, and skill levels.
Small changes in hiring or policy could feel significant, even if national statistics remain stable.
For employers, maintaining competitive pay, flexibility, and training programs will be key to attracting talent. For job seekers, patience, persistence, and strategic skill-building will be essential in navigating the year ahead.
