U.S. labor market activity is cooling as employers evaluate their needs and recalibrate their hiring plans for 2026, according to a Dec. 11 report from iCIMS, a talent acquisition technology provider.
Hiring remained steady in November, though applications and job openings increased year over year. This indicates that employers may be prioritizing efficiency, role quality and long-term strategic fit going into the next year, the report found.
“The drop in November aligns with what we typically see at year-end, but it also reflects employers being more intentional with how and when they hire,” Trent Cotton, head of talent acquisition insights at iCIMS, said in a statement. “The data suggests recruiting teams are recalibrating their workforce plans for 2026, giving recruiting teams the perfect time to further develop their talent pipelines for the new year.”
In mid-2025, 1 in 5 CHROs said they planned to decrease hiring during the next six months, nearly doubling the 11% who said the same in 2024, according to a report from The Conference Board. HR leaders said they intended to brace for change by investing in training for leaders and managers.
The iCIMS report found that artificial intelligence tools and data have become increasingly important as companies navigate more measured labor activity. In particular, employers are using these tools to improve efficiency, reduce friction and create stronger candidate experiences.
In addition, applicant interest varied dramatically by role type in 2025, reflecting economic uncertainty and a talent-market imbalance. For instance, white collar roles have received heavy interest, particularly in areas with layoffs and highly qualified candidates. The top job categories included computer and mathematical occupations and business and financial occupations.
On the other hand, the healthcare industry faced major worker shortages for both clinical and front-line staff, despite reporting the highest urgency to hire. The least popular job categories in 2025 included healthcare support occupations and healthcare practitioners and technical occupations.
Beyond that, food prep roles had solid applicant interest in line with the overall market, but hospitality had the highest application abandonment and interview no-show rates, leading to “a leaky hiring funnel.”
Most CEOs expect to see additional workforce reductions or layoffs in the next year, according to a SHRM report. AI adoption emerged as the most frequently cited primary objective for 2026, ahead of both growing revenue and attracting top talent.
