economy

January 10, 2026

We're in a 'hiring recession,' economist says

The job market flatlined in 2025. The first half of this year is expected to bring more of the same, economists said.

We're in a 'hiring recession,' economist says

TL;DR

  • 2025 was characterized as a 'hiring recession' in the U.S. due to slow hiring and job creation.
  • U.S. employers added 584,000 jobs in 2025, the worst year for job gains outside of a recession since 2003.
  • Healthcare accounted for approximately 69% of all job growth in 2025.
  • Long-term unemployment increased, with 26% of unemployed workers out of work for at least six months in December.
  • The hiring rate fell to 3.2% in November, one of the lowest rates since 2013.
  • Factors contributing to the anemic hiring environment include economic policy, business uncertainty, over-hiring, and AI clarity.
  • Experts recommend skills-based hiring, emphasizing skills and experience over educational attainment.
  • Job seekers should align their resumes and cover letters with job descriptions and leverage AI for keyword matching.
  • Focusing on growing sectors like healthcare, skilled trades, infrastructure, and critical tech jobs is advised.
  • Networking remains a crucial strategy for job seekers.
  • Resume formatting should be single-column with clearly labeled sections, and length can extend beyond one page based on experience.

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