In 2025, job seekers faced challenges like ‘ghosting’ by recruiters, age discrimination, and AI screening. The year saw weak job growth, with just 50,000 new jobs added in December. Layoffs surged, hitting government jobs and the tech sector hard.

Unemployment rates are expected to stay elevated in 2026, despite economic growth. Businesses are wary of hiring due to trade policies and tariffs. Job market growth is predicted to be slow, with unemployment peaking at 4.5%.

While the job market outlook may seem bleak, there is hope for improvement in the latter half of 2026. Tariff and trade policies are expected to stabilize, and the Federal Reserve may introduce interest rate cuts, boosting market stability.

Amidst job market challenges, job seekers are advised to treat job hunting like a part-time job, set goals, and network. Those facing potential layoffs should start budgeting early and build emergency savings. Flexibility in job search may be necessary.

Experts predict a slow recovery in the job market for the first half of 2026. Layoff fears are high, with 55% of Americans concerned about losing their jobs. The year saw a record number of layoffs, impacting government and tech sectors.

As the job market remains uncertain, job seekers may need to expand their search to new roles outside their field. Freelance and part-time work may serve as stepping stones to stable employment. Budgeting and emergency savings are crucial in uncertain times.

Read more at Yahoo Finance: US saw pandemic-level layoffs in 2025, and 2026 job growth may be ‘uncomfortably slow.’ What to do in a tough job market