Factors That Have Made the Job Market More Difficult in 2026 (Over Hiring):
The beginning of 2026 has been a rough ride for the job market. Large employers including Amazon, Pinterest and UPS are cutting jobs, casting blame on the economic (higher interest rates, new tariffs) and geopolitical factors (uncertainty about world events (conflicts, economics), advancements in artificial intelligence as well as over hiring during the pandemic. The "bloating" of organizations during 2020-2021, especially in the tech sector, led to 1.2M job cuts in 2025 by US employees, the highest annual figure since 2020, according to outplacement firm Challenger, Gray & Christmas. The tech sector led all private-sector industries with 154,445 job cuts, followed by warehousing with 95,317.
By many measures, the U.S. economy still boasts a relatively healthy job market. The layoffs are heavily concentrated among a small number of big companies, and overall job losses are low by historical standards. The unemployment rate, while up from 2024, is well below prepandemic levels. As prominent employers such as Amazon now cut roles, many companies in other industries continue to hold on to their staffers.
Hiring has nevertheless slowed to a crawl. People who lose their job today often have a hard time finding a new one, and they stay out of work for longer. In December, the average length of unemployment was 24.4 weeks, according to Labor Department data. In December 2022, the figure was 19.4 weeks.
Source: WSJ