How job seekers can stand out in a hiring recession

A cooling labor market, characterised by sluggish hiring and anemic job creation, made it laborious for job seekers to seek out work in 2025, in keeping with economists.

“It is truthful to say that 2025 was a hiring recession in america,” Heather Lengthy, chief economist at Navy Federal Credit score Union, wrote in a word Friday. That recession impacts each blue- and white-collar employees, she wrote.

U.S. employers added 584,000 jobs final 12 months, in keeping with a Bureau of Labor Statistics report issued Friday. That marks the worst 12 months for whole job beneficial properties outdoors of a recession since 2003, in keeping with Lengthy. There was little job creation since April, which means most beneficial properties occurred early within the 12 months, she wrote.

Most hiring has additionally been concentrated within the health-care sector, making it troublesome for employees to take part throughout the broad labor market, economists mentioned.

“Healthcare alone accounted for roughly 69% of all job progress throughout 2025,” Nicole Bachaud, a labor economist at profession website ZipRecruiter, wrote in a word Friday. “The reliance on a single business to maintain job progress optimistic uncovers the unstable basis in play going into 2026.”

Lengthy-term unemployment has additionally climbed. In December, 26% of all unemployed employees had been out of labor for at the very least six months, the highest share since February 2022, in keeping with the BLS.

That means “unemployment is more and more changing into a everlasting state quite than a brief transition,” Bachaud mentioned.

On Wednesday, the Bureau of Labor Statistics reported the hiring fee had fallen to three.2% in November. That is one of many lowest charges since 2013, in keeping with Lengthy.

General, the present state of the labor market exhibits a stark turnaround from the scorching market of 2021 and 2022.

At the moment, the so-called “nice resignation” was in full swing, with job openings at document highs, pay progress at its highest in a long time and employees capable of depart their jobs in droves for higher positions.

Economists known as that labor market, by which employees loved appreciable leverage, unsustainable over the long term.

The Federal Reserve raised rates of interest to assist cool the labor market and rein in inflation, which in 2022 hit its highest degree in about 4 a long time.

Moreover, a number of elements coalesced into an anemic hiring surroundings, Lengthy wrote: financial coverage equivalent to tariffs, enterprise uncertainty, over-hiring lately, and a reluctance to rent extra employees till the use circumstances for synthetic intelligence grow to be clearer.

Whereas the hiring recession will seemingly proceed within the first half of 2026, the second half needs to be higher for job seekers, attributable to tax cuts, decrease rates of interest and a clearer tariff image, Lengthy wrote.

There are methods for job seekers to enhance their possibilities at touchdown a brand new place, even in a lackluster hiring surroundings, in keeping with job specialists.

1. Spotlight your abilities — and leverage AI to assist

Employers and recruiters have step by step shifted to so-called “skills-based hiring,” which means they prioritize a candidate’s abilities and expertise quite than academic attainment, mentioned Sam DeMase, a profession skilled at ZipRecruiter.

ZipRecruiter knowledge exhibits 88% of entry-level jobs omit diploma necessities within the job description, and about 70% of just lately employed employees have lower than a bachelor’s diploma, mentioned DeMase.

“Many employers wish to rent of us who can hit the bottom working instantly,” she mentioned.

Job seekers ought to guarantee there’s “sturdy” alignment between the job description and the expertise and talent units they define on their resumes and canopy letters, DeMase mentioned.

This helps candidates stand out with recruiters and make it by means of the automated applicant monitoring methods on which employers more and more rely to type functions, she mentioned.

DeMase gave an instance of what candidates can write to spotlight worth proposition: “Utilizing my background in X, I helped firms obtain Y.” For instance: “Utilizing my background in digital advertising and in depth background in knowledge evaluation and content material planning, I helped firms craft modern campaigns that entice and delight the best viewers and drive income.”

Generic abilities statements like “I’ve good individuals abilities and a spotlight to element” will not work nicely in 2026, she mentioned.

Priya Rathod, a profession skilled at job website Certainly, recommends that candidates use synthetic intelligence to match key phrases in job descriptions with these of their resume. This helps candidates get by means of the primary spherical of resume screening, she mentioned.

2. Goal job sectors which are rising

It is essential for job seekers to observe employer demand, mentioned Rathod.

Employees ought to goal sure areas of the job market which are rising, together with well being care, expert trades, infrastructure and revenue-critical jobs, particularly inside expertise, she mentioned.

“Getting employed in 2026 is not essentially about making use of all over the place,” Rathod mentioned. “It is actually about aligning your abilities and the place employers are literally investing.”

For instance, a employee with a gross sales background might not have particular expertise in health-care gross sales, however they will play up their gross sales abilities in an utility, Rathod mentioned.

Take into consideration transferable abilities, and work to upskill through further credentials, licenses or certifications to fill in any gaps, she mentioned.

3. Networking is your good friend

Do not ignore the worth of networking, Rathod mentioned.

Whether or not an individual has a job, is unemployed, or has a part-time function and is searching for full-time work, “networking is at all times going to be one in all your finest associates,” she mentioned.

This may take a number of kinds: Participating with business and group organizations, and speaking to associates and colleagues, both in particular person or on-line, she mentioned.

4. Ignore the one-page resume ‘fable’

DeMase recommends sure nuts-and-bolts resume formatting tips to additional assist make it by means of applicant monitoring system firewalls.

For example, resumes needs to be in a single-column format with clearly labeled sections, together with a headline, about me, achievements, work expertise, areas of experience and schooling, if relevant, she mentioned.

Resumes do not should be restricted to at least one web page.

“There is a fable concerning the one-page resume,” she mentioned. “Do not sacrifice expertise to shorten your resume.”

A resume may be two pages for individuals with 5 to 10 years of expertise, and three pages for these with greater than 10 years of expertise, DeMase mentioned. These aren’t laborious and quick guidelines, nevertheless, and will differ primarily based on business.