What the job market's 'freeze' means for workers and employers in 2026
As 2025 came to a close, job openings on Indeed sat about 5% above pre-pandemic levels. Sounds promising, right?
Not so fast.
Beneath that seemingly positive number lies a labor market that's essentially hit pause. Employers are holding back on hiring, waiting to see how tariffs, immigration policies, and other economic uncertainties play out. Some industries are booming. Others are hitting the brakes.
The result? Both job seekers and employers are searching for solid ground in shifting terrain.
But here's the thing: within these shifts lie real opportunities—for those who know where to look.
What's Really Happening in the Labor Market
Indeed, the world's largest job site, connects over 645 million job seekers with more than 3.3 million employers globally. That massive scale gives them a unique window into real-time labor market trends—and their 2026 Jobs & Hiring Trends Report paints a clear picture.
Economic growth in 2026? Still positive, but "anemic."
The labor market in 2025? Frozen.
"Employers aren't worried enough to make significant layoffs, but they're hesitant enough to avoid expanding their workforces," explains Laura Ullrich, director of economic research and co-author of the report. "When things are uncertain, businesses slow down decision-making. They wait. And that leads to this low-hire, low-fire environment we continue to see."
The Sector Split: Winners and Losers
Not all industries are created equal right now:
- **Healthcare is dominating:** The sector now accounts for more than half of all job growth
- **Tech is struggling:** Job postings in technology are down by a third compared to early 2020
AI: Job Killer or Job Creator?
It's the question keeping workers up at night: Will artificial intelligence steal my job?
Here's the reassuring news: According to Indeed's data, only **0.7% of skills** are currently considered "very likely" to be fully replaced by generative AI.
At the start of 2026, less than 5% of all jobs on Indeed even mentioned AI. Yes, that number is growing quickly—but it's still relatively low.
Where AI Is Making Its Mark
The impact varies dramatically by industry:
**In Tech:** AI's footprint is most visible. Indeed's data shows that tech job postings requiring at least 5 years of experience are growing, even as experience requirements soften in other fields.
What does this mean? AI might be handling more entry-level tech work, requiring experienced humans to oversee the output. Or it could simply reflect broader economic conditions limiting hiring across the board in tech.
**In Healthcare:** AI's impact remains more limited. Core nursing work—physical patient care, roles requiring emotional intelligence, split-second decisions—falls into the "minimal transformation" category.
That said, AI is reshaping administrative tasks, communication support, and documentation. The upside? It could free up caregivers to spend more time doing what matters most: caring for patients.
How to Navigate 2026: Strategies That Work
Success this year isn't about dramatic moves—it's about smart, flexible, data-driven decisions.
For Job Seekers
**1. Broaden your horizons**
"You may have a hard time starting in the tech sector right now," says Ullrich, "but there are tech positions open in healthcare and other sectors."
Don't pigeonhole yourself. Your skills might be valuable in industries you haven't considered.
**2. Location matters**
Many smaller metropolitan areas—particularly in the Sunbelt and Mountain West—are showing higher job posting levels than major coastal cities. Could a move (or remote work) open doors?
**3. Stay flexible**
Focus on in-demand fields. Be willing to adapt your skills, consider different sectors, or explore new regions. As Indeed's Chief Economist Svenja Gudell puts it: "For job seekers who focus on in-demand fields and stay flexible—whether by skill, sector, or region—meaningful prospects remain."
For Employers
**1. Know where talent is tight**
In sectors like healthcare, civil engineering, and construction—and in many smaller cities—maintaining competitive compensation, offering flexibility, and providing career development opportunities aren't nice-to-haves. They're essentials.
**2. Leverage high candidate volume**
In areas where applicant numbers have increased, you have the opportunity to be more selective. Take advantage of it.
**3. Plan carefully and invest strategically**
"Employers who plan carefully, pay attention to local conditions, and invest in talent where demand remains strong will find opportunities in 2026," predicts Gudell.
"For many employers and job seekers, the coming year will be defined by subtle changes, rather than dramatic upheaval," says Gudell.
That's both comforting and challenging. It means no massive shocks—but it also means success requires attention to detail, adaptability, and smart decision-making.
In a moment of global uncertainty, data is your compass. Real-time labor market indicators can help you spot opportunities, identify in-demand skills, and understand how local conditions differ from national trends.
The job market may be frozen, but that doesn't mean it's dead. It's just waiting for those who know how to navigate it.
**What's your take on the 2026 job market? Are you seeing these trends in your industry? Share your thoughts in the comments below.**
*Sources: Indeed 2026 Jobs & Hiring Trends Report; Indeed labor market data*