Hiring has fallen to levels last seen during the early pandemic and the aftermath of the Great Recession, while layoffs and unemployment remain relatively low. The result is an unprecedented split: stable for people who have jobs, recession-like for those trying to find one, without the government safety net that typically accompanies downturns.
More than a quarter of unemployed Americans have been searching for work for 27 weeks or more, up from about 18% three years ago. The February hiring rate hit its lowest point outside of the pandemic in modern data history.
Unlike past downturns, there is no expanded federal unemployment support. State benefits vary widely and are often structured in ways that penalize people who pick up part-time or freelance work to survive.
The people feeling it hardest are experienced, higher-earning workers who are used to successful job searches. Many are drawing down savings and retirement accounts to cover basic expenses while they wait out a market that isn't moving.
Contributing factors include economic uncertainty, cost-cutting, pandemic-era overhiring corrections and AI adoption, all of which are suppressing demand for new hires even as existing workers keep their jobs.
Read more via Business Insider
A new Monster survey of 1,006 U.S. job seekers finds that 48% now regularly apply to as many jobs as possible rather than focusing on roles that match their skills, a behavior driven by silence from employers rather than laziness. 76% say they would apply more selectively if companies gave them feedback during the hiring process.
51% have changed how they apply because they aren't hearing back. Without updates or clear next steps, applicants assume silence means no and keep submitting.
Applicant tracking systems are feeding the cycle. 45% say ATS technology makes them more likely to apply broadly, with many assuming their resume will be screened out automatically before a human ever sees it.
The result is a self-reinforcing loop where overwhelmed hiring teams rely more on AI to process applications, which makes the process feel more opaque, which drives more spray-and-pray applying, which overwhelms hiring teams further.
Many job seekers are reacting to a lack of communication, not laziness. When employers offer little or no feedback, people often feel they need to cast a wider net just to get noticed."
93% of recruiters say they plan to increase their use of AI in 2026 to manage the flood of applications, according to a separate LinkedIn report.
Read more via HR Dive, Monster
In an era when AI lets any candidate sound polished on paper, employers are increasingly demanding that applicants actually demonstrate their skills in real time. Work trials, live simulations and personality-based hiring are replacing or supplementing the traditional resume-and-interview process, particularly at startups and tech companies.
The number of job postings requiring AI skills has quadrupled over the past year, from about 50,000 to nearly 200,000, according to Brookings. More than 60% of business leaders surveyed by Payscale said they've updated existing roles to require AI usage.
Companies like Foxglove bring candidates in for multi-day paid work trials for every role, telling applicants AI use is not just allowed but expected. Of 13 candidates who completed trials in the past 90 days, eight received offers.
Live tests are spreading beyond technical roles. Finance candidates are being asked to decipher spreadsheets in real time, and one recruiting software CEO says "every single function you can think of" now has some kind of live component.
Some employers are moving past skills entirely to focus on personality traits they believe predict adaptability, including competitive athletes and people who've juggled multiple unrelated gigs. "Knowing how to do something today doesn't mean you know how to do it in six months," said one hiring manager.
Artificial intelligence is beginning to carve out a role in how companies set pay, but most organizations are moving cautiously.
A February Korn Ferry survey found that 57% of HR and total rewards professionals hadn't even begun to experiment with AI in compensation, though experimentation increased from 2025 into early 2026.
Companies are primarily using AI to collect and synthesize compensation data faster and more consistently, not to assign specific dollar figures to individual workers.
AI systems trained on historical pay data risk replicating or amplifying existing disparities along gender or race lines, creating potential liability under federal equal employment opportunity laws.
Several states have passed laws restricting AI use in hiring that may also affect compensation tools and more pay-specific legislation is expected.
Data security is a major concern. HR teams are warned never to feed employee pay data into publicly available AI models.
Read more via HR Dive
A Kickresume survey of 1,000 professionals finds that nepotism in hiring is nearly universal in workers' experience, with 57% saying they've seen it happen multiple times. The findings come as employers are simultaneously pushing skills-based hiring and leaning harder on referrals to manage risk.
38% of respondents got their current job through referrals or networking, compared to 36% who applied directly. Half said they would consider recommending an unqualified friend or family member for a role.
53% said skills and connections were equally important for getting a job in their industry, while 27% said skills mattered more.
91% said their trust in leadership would increase if more promotions were based on merit alone.
Referrals aren't inherently problematic, HR consultants noted, but an overreliance on personal networks narrows talent pools, reinforces bias, and erodes employee trust in fairness and progression.
Read more via People Management
