The job market in 2025 was one of the toughest in recent memory. In an economy defined by uncertainty, AI, and global tensions, layoffs across tech, finance, and retail surged, creating a crowded job market, while hiring slowed as companies tightened budgets. Thousands of workers have seen their jobs eliminated this year at large companies including Amazon, UPS, Nestlé, Microsoft, and Verizon. The final U.S. jobs report of the year showed that unemployment rose to 4.6% in November, hitting a four-year high with the hiring rate hovering near levels seen in 2020 when the job market was severely disrupted by the COVID-19 pandemic. For job seekers, this meant fewer opportunities, more competition, and longer application cycles.

Key challenges job seekers faced in 2025:

• Economic uncertainty: Because of tariffs and geopolitical pressures, companies pulled back on hiring, avoiding creating new roles and deferring replacements.
• AI adoption: Automation reshaped roles, reducing opportunities in routine roles (including technical roles) while increasing demand for niche technical skills.
• Seniority paradox: Experienced professionals struggled to land positions as companies favoured cheaper junior talent.
• Lengthy hiring cycles: Recruiters took longer to make decisions, leaving candidates waiting or sending them through more rounds of interviews and tests than usual.

Job Market Trends 2026: The Threats Ahead

As we move into 2026, job seekers will continue to face mounting threats, leading to sluggish job growth and intensified competition for available roles. The hiring landscape is expected to become increasingly selective, with employers raising the bar on qualifications and demanding broader skill sets from candidates. Application processes are likely to grow even more complex, involving multiple interview rounds, assessments, and longer decision timelines.

At the same time, the sheer volume of applicants for each position will intensify, making it harder for individuals to stand out without strong personal branding or networking. These dynamics mean that success in 2026 won’t come from sending out hundreds of applications and hoping for luck. It will require a more strategic approach — focusing on roles that closely match your skills, demonstrating adaptability, and showcasing expertise that’s in demand. Most importantly, having a strong internal advocate — someone within your target organization who can champion your candidacy — can significantly improve your chances of landing the role.

Your Job Search Strategies for 2026

If 2025 taught us anything, it’s that adaptability and preparation are key. Here are the basics for thriving in the 2026 future of work:

• Update your resume: Your Complete Guide to Writing a Perfect Resume (Plus a Free Template)
• Master LinkedIn: Master LinkedIn for Your Job Search Success
• Choose the right strategy: How to Craft a Winning Job Search Strategy
• Invest in upskilling: Skills You Need to Learn to Earn High Income and Achieve Great Career Success
• Build your network: The Power of Networking
• Practice resilience: Navigate Your Job Hunt with Confidence to Attract the Best Opportunities (Plus a Free Resilience Worksheet)
• And why not also consider other forms of employment: Freelancing or Traditional Employment: Explore the Pros and Cons
• Or even working abroad: How to Get a Job Abroad

Final Thoughts

2025 was undeniably brutal for job seekers, but it also revealed what matters most in today’s job market: adaptability, continuous learning, and persistence. As we step into 2026, those who embrace career preparation strategies and stay ahead of job market trends will be better positioned to succeed.

The future of work may be uncertain, but preparation turns challenges into opportunities.

Good luck!

---

Do you want to get new posts directly to your mailbox? Subscribe here.

Do you need my personal assistance? Simply send me your resume and a link to your LinkedIn profile at vaclav@getyourdreamjob.co and I will come back to you!