Image Credit: Geralt
Image Credit,
Take a deep breath.
Exhale.
Repeat a few times.
A relaxed mind is the best tool against your challenges.
While I don’t have a crystal ball to predict what the 2026 job market will look like, I do have insights from numerous conversations with recruiters and hiring managers, coupled with a strong gut feeling that leads me to believe the following factors will continue to influence the job market:
- Geopolitical self-interests causing economic friction between countries.
- Companies investing in AI productivity tools, data processing technology, and automation instead of hiring new employees.
- Employers will continue to lay off employees who don’t contribute measurable value to their profitability or whose roles can be automated, outsourced, or performed by AI.
The job market implications:
- Technological advancement—economic conditions are a distant secondary factor—is the single most significant macroeconomic trend shaping job markets, and it’s not going to slow down or reverse anytime soon.
- As technology improves productivity, companies find themselves with a surplus of redundant, ‘do the bare minimum,’ and underperforming employees. Therefore, employers are trimming payroll fat; consequently, I expect payroll growth in 2026 to slow down further or, at best, remain unchanged.
- Tension between job seekers and employers will escalate further.
Needs to be said: AI isn’t on track to create enough jobs to replace the ones it’s displacing. AI is a 24/7/365 digital employee that employees and job seekers are competing against, an employee that never gets tired, sick, takes a holiday, or demands more (read: is easy to manage), and works much faster—all for no salary, perks, or ongoing overhead costs.
AI isn’t a productivity enhancement tool; it’s a human replacement tool.
The job market is reorganizing around revenue, efficiency, new technology that offers to increase productivity, and onboarding technological skills. Hiring booms or busts will not define 2026—there won’t be a January hiring spike—it’ll be defined by employers not willing to keep on payroll employees who don’t deliver visible, measurable outcomes that contribute to their profitability. Choosing to be a ‘good enough’ employee is choosing to risk termination.
A September 2025 article from Staffing Industry Analysts reported that 58% of US companies expect layoffs or cutbacks in 2026.
2026 will have job seekers contending with fewer job opportunities, along with a shift in hiring practices: employers increasingly relying on referrals, processing applications more slowly with greater due diligence, and using AI to determine which candidates are worth interviewing.
The new hiring mantra: Smarter, not faster.
Moreover, skill-based hiring is replacing degree requirements, with companies prioritizing certifications, project portfolios, and proven outcomes over job titles. Internal mobility is also gaining importance, as employers recognize that retraining existing staff for new roles is quicker and more cost-effective than hiring externally.
As employers prioritize revenue and productivity improvements, they’ll only be hiring for essential positions. Job seekers who’ve established themselves as top performers in their fields and industries—visibility is a job seeker’s most valuable currency—and don’t feel entitled, have unrealistic expectations, and most importantly, can clearly demonstrate how they’ll contribute to an employer’s bottom line will be the ones who succeed in their 2026 job search.
Furthermore, return-to-office mandates will continue as companies transition their employees from remote work and flexible schedules to more stringent office attendance policies. Productivity data, promoting collaboration and engagement, and strengthening company culture are influencing employers’ decisions about where the work they’re paying for is done. Job seekers who are willing to work onsite will have a shorter job search compared to those who insist on working from home.
In 2026, the growth of interim and project-based hiring, known as fractional work—offering your skills to multiple companies or clients on a part-time or project basis, often in strategic, high-impact roles—will continue. Full-time employees without a steady workflow are seen as a financial burden, prompting employers to leverage contract professionals who provide flexible talent solutions—especially at the leadership level—for time-limited projects such as implementing an enterprise system or a cybersecurity initiative, or as a part-time Product Manager.
Employers expanding their use of fractional workers instead of hiring full-time staff means that in 2026, more employers will freeze their headcount while increasing service agreements to take advantage of the financial benefits of:
- No long-term salary commitments
- No benefits packages
- No onboarding cost
- No managing employee risks
How can an employer not love fractional workers? They’re a straightforward P&L line item, a strategic service when needed. From a job seeker’s perspective, fractional work is easier to secure than traditional work (40-hour workweek, benefits, PTO); however, fractional workers are self-employed, which requires an entrepreneurial mindset that most job seekers don’t have.
In 2026, job seekers need to prioritize showcasing their intent and providing evidence of the impact they’ve had on their previous employers. View your resume and LinkedIn profile as strategic tools, not afterthoughts. Cultivate professional relationships long before asking for referrals. Know your career story and value-add to an employer. More than ever, employers want to hear value stories with quantifying numbers and specific outcomes. Above all, remain flexible—whether that means working onsite, doing fractional work, or taking a step back. The mindset I’d bring into 2026: a paycheque is better than no paycheque.
_____________________________________________________
Nick Kossovan, a well-seasoned corporate veteran, offers “unsweetened” job search advice. Send Nick your job search questions to artoffindingwork@gmail.com.
About The Author
