The 2026 job market is mixed: layoffs have leveled off, but many business owners are frozen by uncertainty, and AI is making hiring decisions harder rather than easier. At MJL Recruiting & Consulting my advice for job seekers is to rely on networking over online applications, optimize resumes for AI screening, and treat the search as a marathon, not a sprint.
The current job market is confusing enough that I haven't seen anyone fully nail what's actually going on. But a few things are becoming clearer, and none of them are simple good news or bad news. They're both at once.
Have layoffs stopped in 2026?
That's the good news, as far as I can tell. The wave of layoffs that's defined the last couple of years appears to have leveled off.
Why aren't companies hiring right now?
The bad news: a lot of business owners are operating from a place of fear right now, and fear is paralyzing. Companies know they have gaps that need filling, but many aren't making moves at all.
I was talking recently with a friend who's well-connected at FedEx. Every role there is currently on hold. Nobody seems to know exactly why. It's not a statement about any particular administration or policy. It's a general sense that business owners don't feel confident enough to commit to decisions right now. That's not a great sign for job seekers heading into the rest of 2026.
How is AI affecting hiring decisions?
Maybe the biggest factor of all: nobody knows what AI changes next. Companies are still trying to figure out exactly what AI can and can't handle, and that uncertainty is making hiring decisions harder, not easier. Why hire someone into a role that a few more advances in AI could make redundant?
On top of that, there's been recent buzz about humanoid robots reportedly being close to market-ready. Where that leaves hiring in the next year or two, nobody actually knows yet. Anyone claiming certainty on this point is guessing, myself included.
Is AI screening resumes before recruiters see them?
Yes, increasingly. AI is already reshaping hiring from the other direction too. More companies are leaning on AI-driven screening tools before a resume ever reaches a human recruiter, which means a lot of genuinely qualified candidates are getting filtered out before anyone reads their story. Resume optimization isn't optional anymore; it's a baseline requirement for getting seen at all.
What should job seekers do in the 2026 job market?
Applying online still has some value, but I wouldn't rely on it as a strategy. I recently applied to about 40 jobs myself as a test:
- Five rejections landed within 24 hours, each claiming the role had just been filled.
- The other 35 have gone completely silent.
That's the reality of the applicant-tracking-system pipeline right now.
Your network is still the strongest lever you have. Look for local networking events where the people who can actually help you are showing up in person, and be there. And be patient. Right now, the job search is a marathon, not a sprint.
Where is hiring headed next?
A few predictions, for what they're worth:
- Hiring stays slow but steady. Roles will keep taking longer to fill, but hiring won't grind to a full stop. Companies that run an efficient process will win the best talent that's still available.
- Compensation strategy gets more creative. Expect more performance-based bonuses and flexible benefits as companies look for ways to compete on total package without moving base salary as much.
- AI's role in hiring keeps expanding. The companies that use it well, without losing the human judgment in the process, will have a real edge over the ones that either ignore it or over-rely on it.
- Job seekers need to get more strategic. Tailored applications, real networking, and adaptability will separate the candidates who land offers from the ones stuck in the applicant black hole.
How can MJL Recruiting & Consulting help?
Beyond fractional support, I also run full-cycle recruiting engagements:
- Defining the role
- Building the candidate profile
- Sourcing and screening
- Managing interviews and debriefs
- Extending offers
- Handling background checks
And if your internal process itself needs work, I consult on that too: streamlining your process, identifying gaps, building interview scorecards, and training interviewers to run a tighter, more consistent process.
Frequently asked questions about the 2026 job market
Are layoffs slowing down in 2026? MJL Recruiting & Consulting sees the wave of layoffs from the last couple of years appearing to level off. The bigger issue now is that many companies aren't hiring either, because business owners don't feel confident enough to commit.
Why are companies putting hiring on hold? MJL Recruiting & Consulting finds that many business owners are operating from a place of fear and uncertainty, including uncertainty about what AI will be able to handle. Companies know they have gaps, but many are waiting rather than making moves.
Do online job applications still work in 2026? They have some value, but MJL Recruiting & Consulting doesn't recommend relying on them. In a test of about 40 online applications, five got rejections within 24 hours and the other 35 went silent. Networking, especially in person, is still the strongest lever.
How do I get my resume past AI screening? MJL Recruiting & Consulting treats resume optimization as a baseline requirement, because more companies use AI-driven screening tools before a human recruiter ever sees a resume. Tailor each resume to the role so qualified experience isn't filtered out.
What will hiring look like in the next year? MJL Recruiting & Consulting predicts hiring will stay slow but steady, compensation will get more creative with performance bonuses and flexible benefits, AI's role in hiring will keep expanding, and job seekers will need tailored applications and real networking to stand out.
If either of those sounds like where you're at, reach out here and let's talk.