US Hiring Slows in January, 16% Below Pre-Pandemic Levels

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LinkedIn’s January hiring data for the U.S. points to a cool start to 2026. 📉 Hiring slowed to begin the new year. U.S. hiring fell 3.3% from December and is down 5.7% compared to January 2025, leaving hiring 16% below pre‑pandemic levels (vs. January 2019). 📊 Slowdowns across sectors remain mild. From December to January, hiring slowed in 17 of 20 industries, although in most industries, the slowdown was mild, easing only –1% to –3%. Year-over-year, hiring held steady in both Construction (+1%) and Technology, Information and Media (+1%), and only slipped slightly in Financial Services (–0.3%). 💡 Resilience observed across industries. The overall pace of hiring is well above 2016 levels in several industries such as Construction (+27%), Utilities (+15%), Consumer Services (+10%), Hospitals and Health Care (+6%), and Education (+5%). 🔎 Competition remains. Competition for jobs rose with fewer job postings per applicant—down 4% from December—and workers are leaving their jobs at about the same rate as before. 📈 Early signs of improved worker confidence. The latest read of our Workforce Confidence Index is showing a recent uptick, especially in confidence to improve financial conditions and grow careers. ❗ However, job seekers are still facing headwinds. Confidence to get a job has risen slightly, but remains near all time lows. In fact, according to our survey, 56% of active job seekers have been on the market for 6+ months. And confidence to get a job is lowest amongst Gen Z workers in comparison to all other generations. For anyone job seeking or considering a move, you’re not alone – and there are signs of momentum ahead as the labor market continues to shift and evolve. If you’re exploring new paths, take a look at LinkedIn’s Jobs on the Rise list to see the roles and industries creating opportunity right now. https://lnkd.in/JOTR26US

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When headline hiring slows and remains below pre-pandemic levels, the structural story isn’t just a cyclical cool-down — it’s a rebalancing of incentives. Employers are prioritizing selective roles where productivity gains matter, while broader headcount expansion stalls. That signals a shift from volumetric hiring to strategic talent demand.

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Thanks for sharing, Karin Kimbrough. The amount of new physicians joining LinkedIn to network and for career search purposes is incredible right now. I’m sure from the 10,000 foot view your team is seeing this. Keep up the great work.

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This is a sharp reminder that stagnation often looks like stability on the surface, but it’s really the absence of intentional growth.

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Is there a seasonal rush in hiring starting in Thanksgiving, and then a slow down when the holiday stretch is over?

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Thanks Karin for sharing the data and insight!

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Karin Kimbrough it would be great to have access to Canadian data. Any chance we could get a similar post?

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