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Passive Candidates May Be The Key To Smarter AI Hiring In 2026

As mass applications overwhelm recruiters, more employers are using AI matching tools to find experienced workers who never applied in the first place.

Priya RathodbyPriya Rathod
June 7, 2026
in Workforce
Reading Time: 4 mins read
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Passive Candidates May Be The Key To Smarter AI Hiring In 2026

Nearly 40% of job seekers are not actively applying, pushing employers to rely more on AI matching instead of resume screening.

Right now, there are more people looking for jobs than there are open roles. With just 0.9 job openings per job seeker and AI tools making it easier than ever to apply, job search activity on Indeed was up to 31% higher in January 2026 compared to December 2025.

That might sound like a gold mine to hiring teams, but for many that applicant rush feels more like a tsunami. More applications per role does not necessarily raise the probability of a better fit. Hiring teams actually face slower decisions and missed opportunities as they weed through the tower of applicants, with top talent falling through the cracks.ย 

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And on the other side of the equation, job seekers are left in the notorious hiring โ€œblack hole,โ€ unsure of where they are in the process and feeling invisible.ย 

To top it all off, some of your strongest candidates might not be initially applying at all, scared away by the number of applicants and sticking to the sidelines.ย 

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There is a solution to this dilemma: approaching the hiring process from another angle.

The best candidates might not be in your inbox

There is a dynamic in the labor market right now called โ€œjob hugging,โ€ that has remodeled the talent pool. Workers are staying in their jobs at near-record rates, not because they necessarily love them, but because switching feels risky.ย 

Take someone like Marcus, a senior operations manager at a mid-size logistics company. He has been in his role for four years, gets solid reviews, and honestly? He is a little bored. He has his eye on what is next. But when he looks at the job market, the sheer number of applicants per posting and the black hole of applications, he decides the risk is not worth it. So he stays put, updates his Indeed profile, and waits for the right thing to find him.ย 

Marcus is not disengaged. He is strategic. And he is exactly the kind of candidate hiring teams are missing because they are only looking at who showed up in their inbox.ย 

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Passive job seekers like Marcus account for 39% of job seekers. These are professionals who keep their profiles current and stay open to the right opportunity, but are not actively applying. Why? They understand that competition for jobs today is high and that their resume is more than likely going to be overlooked due to sheer volume. They are positioning themselves for success by setting employers up to find them.ย 

The best match may not be the person who applied first. It might actually be the person who has not applied at all. That person is excelling and driving results in their role at another company. But should the right opportunity come along, they would be ready to take the leap.ย 

What does this mean for employers? If you are not finding them, someone else is.

Hiring teams need to invest in tools and processes that surface qualified candidates beyond inbound applications, whether thatโ€™s actively searching profiles, refining job requirements, or using AI to identify strong matches earlier.

AIโ€™s real advantage is matching, not filtering

Most of the conversation about AI in hiring focuses on screening: managing volume, filtering resumes, and messaging faster. But the bigger advantage not often discussed is for job matching: using AI to surface candidates whose skills and experience align closely with what a role actually requires.ย 

Instead of narrowing the field as quickly as possible, matching helps hiring teams widen it strategically. For example, both active and passive job seekers can share their skills, experience and job preferences on their Indeed profile and be discovered by companies who need someone like them. Because so many experienced workers are not actively applying for jobs, matchingย  may be the best way to find the right candidate.

This does not replace the human side of hiring; it changes where human judgment gets applied. Recruiters spend less time sorting through unqualified applications and more time in real conversations with a qualified slate of candidates. Indeed’s matching technology has helped employers make hires 40% faster.

Smart hiring teams don’t limit their options

When volume is not the problem, the advantage goes to whoever searches most intentionally. The strongest recruiters right now are not waiting for the right resume to land in their inbox. They are looking at the full field of qualified talent, not just whoever happened to apply this week.

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AI makes that scalable. By amplifying the human element of hiring, AI allows teams to move beyond reactive screening and toward more deliberate discovery. It broadens the lens, helping recruiters consider the full landscape of potential fits rather than narrowing prematurely.

The teams that embrace this mindset will make better longโ€‘term decisions, reduce wasted effort, and build stronger teams over time while others are still sorting through volume. In a market this competitive, that is where the real hiring edge is.

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Priya Rathod

Priya Rathod

Priya Rathod is Workplace Trends Editor at Indeed, where she helps people trust their worth and understand how the world of work is changingโ€”so they can change with it.ย  She translates real-time labor market data into clear, usable guidance for job seekers, workers, and employers. Editors and producers turn to her for steady, human-centered analysis that connects headlines to real lives. A clear, knowledgeable on-air presence, sheโ€™s appeared on CNBC, ABC, CBS, FOX, NBC, Fortune, and more.ย  Ten years at Indeed inform her vantage point today, including regular conversations with economists, researchers, data teams, and leaders on both sides of the hiring table.ย  Priya is also a busy mom of three children and an advocate for parents in the workplace.

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