AI's introduction to the labor market got off to a rocky start, with speculation that it would be a massive job killer. The data tells a different story. Instead of cutting headcount to save money, companies are using AI to reshape their teams, speed up hiring processes, and raise the bar on what they expect from employees. AI adoption is ramping up, and so far, it looks like a net positive for job creation.
Recent research and commentary
The June Job Openings and Labor Turnover Survey (JOLTS) showed openings continued to slide down in June, to 7.4M, but still remained 2.2% above last year's levels. The hires rate ticked up to 3.4%, the quits rate held flat at 2.0%, and layoffs stayed at 1.1%. May was revised to a slightly more balanced position too, with a small bump to both hires and quits and a downward revision to openings.
AI's introduction to the labor market got off to a rocky start, with speculation that it would be a massive job killer. The data tells a different story. Instead of cutting headcount to save money, companies are using AI to reshape their teams, speed up hiring processes, and raise the bar on what they expect from employees. AI adoption is ramping up, and so far, it looks like a net positive for job creation.
Inflation cooled significantly in June to 3.5% year-over-year growth. Following a three-year high in May, we just saw the largest one-month CPI decrease in over six years, at -0.4%. This cooling was primarily driven by a sharp drop in energy prices, which served as the largest contributor to the overall decline.
By nearly every measure, trade jobs offer stability, good compensation, and satisfaction in the American economy. And yet, the workforce pipeline feeding them is fragmented, informal, and increasingly strained.
The June Employment Report came in weaker than expected, with only 57,000 jobs added to the economy. Inflation has ticked back up and is slowing down the momentum that had been building over the past few months.
The May Job Openings and Labor Turnover Survey (JOLTS) shows that employers are feeling optimistic about the future, with job openings staying steady at 7.6 million. But that optimism has yet to translate to action, with hires still at 3.3%, flat with last month given revisions.
Every working parent knows "the math.” You take a salary, subtract housing, subtract childcare, and pray there is enough left over to actually live on.
But over the last few years, the math has fundamentally broken. As the cost of the most basic necessities—housing and childcare—skyrockets, wages simply haven't kept pace. The result is that raising a family in the U.S. has become prohibitively expensive. And for women, who overwhelmingly bear the brunt of the financial and career compromises, the challenge is even steeper.
Looking for a summer job this year? The timing of a summer job search matters more than you might think. ZipRecruiter’s latest data shows that the best time to apply depends heavily on local weather and school calendars rather than a single national timeline.
The May Employment Report confirms that the labor market is gaining traction. The economy added 172,000 jobs in May, unemployment held steady, and underemployment ticked down as more workers found the roles and hours they were looking for. Labor force participation remains low but stable. Taken together, the data suggest that energy is returning to a labor market that had been largely stagnant just in time for summer.
Job openings surged to 7.6 million in April, the highest level in nearly two years, but hiring pulled back to a 3.2% rate. The gap between employer demand and actual hiring points to a widening skills mismatch — and structural forces like an aging workforce and reduced immigration mean it won't close quickly.
The ZipRecruiter Q2 2026 New Hire Survey indicates that the workforce is navigating a slower labor market with careful consideration and intention. While the rapid job-hopping trend observed in the post-pandemic era has stabilized, newly hired workers continue to make strategic moves to enhance their daily work lives. The modern job search requires significant effort, endurance, and time; however, for candidates who are willing to invest that effort, the market is delivering positive results.
The April Employment Report shows a stabilizing trend, with 115,000 jobs added and unemployment holding at 4.3%. Declining labor force participation means fewer jobs are needed to maintain that rate. Excluding February's weather- and strike-related blip, the first four months of 2026 suggest the mid six figures may be the labor market's new normal.
The March Job Openings and Labor Turnover Survey (JOLTS) reported that while the level of job openings remained relatively unchanged, employer activity increased, as hires bumped up by 655,000 in March, taking the hires rate from the February slump of 3.1% back to 3.4%, matching the highest level since early 2024.
The job search has a new dividing line: whether or not you're using AI. ZipRecruiter's Q1 2026 survey of job seekers shows a stark split in how AI-powered job seekers navigate their search compared with their more tech-averse counterparts.
Retirement levels are near historic lows, with an estimate of retirements sitting at 274,000—well below pre-pandemic norms. Many stay working for financial reasons, as 66% of workers 60+ who haven't retired say income needs are keeping them on the job. Inflation has impacted retirement plans for just under half of those aged 60+, the number one fear this cohort experiences.
Older workers make up nearly double the share of the workforce they did 20 years ago, and many are willing to stay longer if employers offer a path to do so.
Many workers 60+ expect never to fully retire—and most say money is the reason.
As the labor market has remained stalled for much of the last year, the entry-level job market is tightening. These roles are harder to find and more competitive right now than more senior positions. ZipRecruiter’s data shows that more job seekers are competing for entry-level positions, while fewer of the available jobs are actually entry-level. This means emerging talent faces more competition to get their foot in the door.
The latest data from our Q1 Job Seeker Confidence Survey and Q4 New Hire Survey highlights exactly how employers can stand out in a competitive market. To win the attention of top candidates, companies must focus on speed, clarity, and flexibility.
The March Employment Report reversed course from the February dip, and posted a large gain: an increase of 178,000 jobs in March blew past expectations to the highest gain since December 2024. Unemployment ticked back down to 4.3% as labor force participation fell to 61.9%. While the headline numbers are stronger than expected, a peak under the hood presents a shrinking labor force and continued challenges for those looking for work.