With 2025 coming to an end, it’s time to look back at the year in hiring and get ready for 2026. The team from Resume.co has been following the data to understand how to best support your job search.
It’s clear the U.S. labor market shifted. The post-pandemic hiring boom cooled off, competition intensified, and AI became standard on both sides—employers and candidates alike.
We examined the key U.S. job market trends from 2025, predictions for next year, and what you can do to navigate your job search successfully.
The Snapshot
The market cooled but didn't collapse. Openings exist, hiring just slowed down.
Competition increased. There are more candidates per role, longer waits, and fewer callbacks.
Entry-level searches are hardest. Senior roles face less pressure.
Your resume must work for both AI screening and human review.
Winning takes a mix of applying broadly, tailoring your documents, and networking.
2025 by the Numbers
In 2025, the U.S. job market was slow but stable. Core indicators remained healthy even as hiring activity cooled.
The table below outlines the U.S. employment outlook in 2025:
Metric | What It Means |
|---|---|
Unemployment rate: 4.6% ↑ | Highest since Sept 2021, but still low — close to “full employment”. |
Job openings: 7.7M → | Flat. Demand exists but companies aren’t expanding aggressively. |
Long-term unemployment (≥27 weeks): 1.9M (~24.3% of all unemployed) ↑ | Nearly 1 in 4 unemployed people have been searching for 6+ months. |
Quits rate: 1.8%↓ | Fewer voluntary quits. Workers less confident about finding better opportunities. |
Youth unemployment (16–24): ~10.8% | More than double than before. Entry-level job market significantly tougher. |
Quick Summary
Overall: healthy core metrics, market functioning normally
Companies hiring cautiously, workers hesitant to quit jobs
The biggest pressure is on young and early-career candidates
Why the U.S. Job Market in 2025 Seems Bad
There are several reasons why the U.S. job market in 2025 seems bad. Of course, this isn’t just our conclusion. For instance, 12 out of 17 job seekers Resume.co interviewed said: The market is hard right now. So, what’s behind this widespread challenge?
You’re Competing Against More People
Job postings now attract 200+ applications, which is up 102% since ChatGPT launched in 2022.
The average recruiter manages 15-25 roles with 300-500+ applications each.
Ghosting became standard because recruiters are simply too overloaded.
Success Requires Volume You've Never Needed Before
The average job seeker sends 100-200 applications before landing an offer, which is up from 10-20 a few years ago.
Average time from application to offer is 44-68.5 days.
AI Created Confusion on Both Sides
82% of companies use automated screening and 54% of candidates faced AI-led interviews.
Candidates use AI to write resumes, employers use AI to filter them.
Success means optimizing for keywords and ATS to pass initial filters.
Trust in the Process Eroded
46% lost trust in hiring over the past year, with 42% blaming AI directly.
18-22% of job listings are "ghost jobs", posted with no intent to hire.
24% of job postings omit salary information; when included, many salary ranges feel misleading.
Job Market Outlook: What to Expect in 2026
What to Expect in 2026
No dramatic shifts are expected. 2026 will likely follow 2025's employment trends in the US. The first half stays slow as companies remain cautious. The second half should see gradual improvement.
Key U.S. Job Market Trends in 2026
Hiring will stabilize but not grow.
The "low-hire, low-fire" environment will continue.
The U.S. unemployment rate may climb slightly but not alarmingly.
Entry-level positions will remain the hardest as companies favor experienced hires and AI replaces junior roles.
Healthcare will keep hiring strongly due to aging populations; tech, finance, knowledge work will stay cautious; construction and hospitality will face labor shortages.
Contract and freelance roles will expand.
AI in hiring is here to stay; automated screening and keyword optimization are now baseline, not temporary.
In a slower market like this, your strategy and approach matter more than anything else. You can't control the market, but you can control how you show up in it. |
|---|
Your 2026 Job Search Strategy
Consistency + Tailoring = Results |
With hiring timelines getting longer, career experts from Resume.co recommend both applying consistently and tailoring your applications to the job. Here are their detailed tips:
Apply regularly to stay in the pipeline (target 10-15 applications per week as a baseline).
Start with one strong base resume (or more if you're targeting very different roles).
Tailor the job title, summary, and top skills for the target role; there's no need to rewrite everything, but customization makes a difference.
Tailor the basics, but don't overresearch or perfect each application before hitting submit.
Use full applications, not just Easy Apply on LinkedIn, since complete submissions get better response rates.
Attach a cover letter when possible, especially for roles you genuinely want since it's a good way to show personality and specific interest.
Leverage referrals, alumni connections, and former colleagues as this approach still works best.
Automate where and whenever you can; Resume.co handles tailoring and cover letters so you can focus more on applying.
What Gets Your Resume Into Interviews
Dos
State the target job title in your resume headline
Include a concise summary at the top (2-3 lines)
Focus on achievements, not responsibilities, in your bullet points
Lead with hard skills in your summary and skills section
List only relevant experience that supports the role you’re applying for
Don’ts
Use decorative designs, creative fonts, or extra symbols — ATS can’t parse these
Add a photo
Include long paragraphs of generic AI-generated text
List irrelevant jobs that don't support your target role
Overcomplicate with tables or columns
The U.S. job market trends in 2025 imply that showing up consistently matters more than timing it perfectly. Start updating your resume, apply consistently, and give yourself time to figure out what works. Here's to making 2026 your year!
Ready to build your base resume and start tailoring?
Use our resume builder now!Sources
Bureau of Labor Statistics - Employment Situation Reports, JOLTS data
Greenhouse - 2025 Workforce & Hiring Report
Indeed Hiring Lab - 2026 US Jobs & Hiring Trends Report
J.P. Morgan Research - US Labor Market Forecast 2026
NACE (National Association of Colleges and Employers) - 2026 hiring survey
resume.co - US Job Market in 2025 Overview
resume.co - In-depth User Interviews
