Current Hiring Trends
The US labor market exhibits persistent weakness as of January 2026, with job postings on platforms like Indeed hovering just 6% above pre-pandemic levels. The overall hiring environment remains subdued, reflecting a cautious approach from employers amid economic uncertainties. Although job growth in 2025 stabilized unemployment rates and kept layoffs relatively low, the total jobs added fell short by over 1.4 million compared to 2024, signaling a return to hiring rates reminiscent of the 2010-2013 period.
AI Job Postings on the Rise
Despite the broader hiring malaise, positions mentioning AI have experienced a notable uptick. The Indeed AI Tracker reported a record high of 4.2% of job postings featuring AI-related terms by the end of December 2025, up significantly from previous years. This increase stems from a surge in demand for machine learning and generative AI skills, particularly following the rise of tools like ChatGPT.
Sector-Specific Insights
Job postings that include AI terms show a stark contrast with overall hiring trends. For instance, postings in the tech sector that mention AI rose 45% above 2020 levels, whereas total tech postings plummeted by 34%. This divergence highlights a shift in employer priorities as they grapple with cooling demand across most knowledge work sectors. Nearly 45% of data and analytics job postings now include AI references, compared to just 15% in marketing roles and 9% in human resources.
Implications for Employers and Job Seekers
This shift toward AI-specific roles suggests a recalibration of skills employers value in a contracting job market. Companies increasingly seek talent that can navigate AI technologies, often at the expense of traditional roles. LinkedIn data corroborates this trend, showing that AI has generated over 1.3 million new positions, driven by a 70% year-over-year increase in AI literacy requirements across various functions.
Future Projections
Looking ahead, the Bureau of Labor Statistics projects a 3.1% increase in total employment through 2034, bolstered by growth in AI-related fields such as R&D and cloud computing. However, challenges loom, including potential displacements of 92 million jobs by 2030, countered by the anticipated creation of 170 million new roles according to the World Economic Forum. Young workers in high-AI fields face a grim outlook, with employment in these areas dropping by 13% since 2022.
Long-Term Outlook
As we move into the next 6–12 months, expect the trend of increasing AI job postings to continue. Companies will prioritize hiring that leverages AI capabilities, even as general hiring stalls. Those who can adapt and upskill in AI-related competencies will likely find themselves in a favorable position, while others risk being sidelined in a contracting market.
