Many job seekers in the tech and engineering sectors have struggled to secure new roles over the last few years. Unfortunately, experts forecast that this trend will continue into 2026.
Although it appears at odds with economic indicators, the job market has become stagnant. After all, GDP growth has been steady and productivity is rising. Companies have been investing in new technologies as they focus on digital transformation, improving efficiency, and new revenue streams. By all accounts, the job market should be thriving. It is not.
Since 2022, job openings have declined and hiring has slowed. Job postings stay up longer. The interview process has lengthened and become more complex as organizations struggle with an influx of AI applications, add more interview rounds, and increase screening methods. As well, many companies have scaled back on hiring. In addition to increasingly implementing AI and automation, they are cautious about hiring due to the instability of global socioeconomic trends. As a result, it has become increasingly difficult to find open roles to apply for, and periods of unemployment have become longer.
America has entered a period of jobless growth – although the economy is growing, the number of open roles isn’t growing at the same rate.
If you’re currently unemployed or seeking a new role, this may cause alarm. However, there are several things that you can do to uncover new opportunities and stay competitive in today’s job market.
Job Openings And Hiring Have Declined Since 2022
The data clearly shows that the job market has been cooling since 2022. In March 2022, job openings hit a high of about 12.2 million. However, those have been steadily falling and, in December 2025, job openings numbered just 7.6 million.
Additionally, the U.S. Bureau of Labor Statistics reports a slow decline in the number of job openings per unemployed person since 2022. According to the HubbardOBrienEconomics.com blog, there were more than two job openings for every one unemployed person in the spring of 2022. By late 2024, that ratio had declined to 1.1 job openings per unemployed person.
The data clearly shows a considerable softening of the job market since 2022.
Workers Are Staying Unemployed Longer
Shifting labor market trends have led to lengthened periods of unemployment. The overall rate of unemployment in the U.S. didn’t change much throughout 2025, hovering between 4.0 and 4.6 percent. However, the number of long-term unemployed people (those jobless for 27 weeks or longer) rose by 397,000 over the course of the year. By December, those in long-term unemployment accounted for 26% of all unemployed people.
It’s important to note that unemployment statistics don’t tell the full story. Some people who experience unemployment may end up accepting any type of job out of economic necessity. While no longer unemployed, they may be working part-time, cobbling several part-time positions together, or working in roles that don’t suit their skills and experience. As a result, they may still be active job seekers.
Productivity Has Increased Even Without Robust Job Growth
Reuters reports that, “U.S. worker productivity grew at its fastest pace in two years in the third quarter [of 2025] as businesses invested heavily in artificial intelligence.” The growing use of AI and automation is a significant factor in the current period of jobless growth. Employers have found a way to increase their output without a corresponding increase of workers.
Additionally, organizations taking a cautious approach to global socioeconomic trends may be re-evaluating how work gets done internally. Instead of creating new positions, for example, they may refine job descriptions or focus on upskilling and internal mobility as a way to retain skilled talent, rather than hiring externally.
It’s this lack of job growth that’s making it difficult for those in the tech and engineering sectors to find new roles right now.
GDP Is Growing While The Labor Market Stagnates
Economists worried that America would plunge into a recession in 2025. That did not come true. Economic growth remained relatively strong. According to the Bureau of Economic Analysis, real GDP “increased at an annual rate of 4.3 percent in the third quarter of 2025.” This growth indicates that businesses are expanding and increasing output.
However, as explained above, this growth has not created a surge in hiring. Job openings and hiring have been sluggish, highlighting the caution organizations are feeling, even as they experience economic growth.
AI’s Impact On The Labor Market
Although AI, automation, and digital transformation are sweeping across all sectors, it’s difficult to accurately gauge the impact of this change on the labor market. While AI can change the way we work and even eliminate some roles, it also creates new jobs.
A blog at the Federal Reserve Bank of St. Louis makes some interesting points. First, computer and mathematical occupations saw the steepest rise in unemployment when the same period of time – May through July – is compared between 2022 and 2025. This is not surprising since these occupations are among those most exposed to AI. The authors of the blog state that this is an overall pattern that is “striking in technology sectors, where workers might expect AI to augment rather than to replace their roles. Software developers, data analysts and other tech professionals are finding that AI tools can indeed accelerate certain tasks, but potentially at the cost of overall employment demand.”
However, the authors caution that it’s difficult to understand just how AI affects unemployment rates. They explain that:
The findings presented here represent correlation, not causation. Multiple factors could explain rising unemployment in AI-exposed occupations, including economic uncertainty, postpandemic monetary policy tightening and chance timing. Furthermore, this analysis is based on preliminary findings in a rapidly evolving field.
It’s too soon to fully understand how AI affects unemployment rates, especially since it is only one of several factors that affect joblessness. As well, it’s important to keep in mind that while AI may reduce demand for certain tasks or roles, it also creates new roles where human skills are needed to complement automation.
What Job Seekers Should Do In 2026
The sluggishness of the job market may be causing you some alarm, especially if you were hoping to find a new role in 2026. But strategic attention to your job search tools and perhaps some personal reflection can help you further your career goals, even during times of jobless growth.
Optimize Your Resume And LinkedIn Profile
For each job that you apply for, take time to revise your resume, using language that matches the job description. Include words and phrases that seem to be keywords. Highlight your experience, achievements, and skills that match those listed on the job posting.
An up-to-date and optimized LinkedIn profile remains critical to a successful job search. New AI tools can help refine your profile so that it stands out to prospective employers.
Leverage AI In Your Job Search
In addition to helping polish your LinkedIn profile, AI tools can help refine applications, tailor cover letters, practice interviewing, build your personal brand, and streamline your job search. When used correctly, AI can be incredibly helpful with almost all tasks related to a job search.
Network Strategically
Networking is more important than ever. And it’s important to network strategically, using your time and connections to your best advantage. To make new connections, focus on targeted outreach in your industry and attend niche-specific events, both virtually and in person.
Develop Skills That Employers Value
With rapidly emerging tech tools and changes to the way we work, learning new hard skills can help you land a new role. Focus on upskilling in niches with strong projected demand, such as data analytics, AI and machine learning, and cybersecurity.
Equally important is taking time to refine your soft skills. In an age where machines can increasingly perform tasks that used to require hard technical skills, employers are learning the value of human skills that can’t be replicated by machines.
Consider Flexible Work Arrangements
If you’re having trouble landing a full-time job that can further your career path, consider working on a contract basis, consulting, accepting part-time roles, or taking on project work. While these opportunities may lead to a full-time role, you may also find that you appreciate the work/life balance that flexible work arrangements allow.
Partner With A Specialized Recruiter
Partnering with a recruiter or agency that specializes in your niche has several benefits. Recruiters familiar with your sector can provide access to unposted roles, advice about your applications and resume, and interview coaching.
Handling The Emotional Strain Of Job Searching
Looking for work is always stressful, but if you’re in the midst of prolonged unemployment, an ongoing job search can have a significant impact on your mental health. Emotional fatigue and job search anxiety are not unusual.
It’s important to create sustainable job-search techniques and know when it’s time to pivot or take a break. If you’re partnered with a recruiter, they can provide valuable advice that can help lessen the emotional toll. If it comes to a point where your mental health is affected, please seek professional help.
Conclusion
No one can deny that the labor market is slow. As we enter 2026, it can be tough to find open roles, much less land an interview or a new role. However, it’s important to remember that the United States is not in an economic recession. Productivity and GDP growth are strong, and new roles are being developed to manage emerging technologies. Job seekers who are prepared, strategic, and resilient can succeed in 2026.
