How job seekers can stand out in a hiring recession
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The cooling labor market, characterized by slow hiring and weak job creation, has made it harder for job seekers to find work in 2025, according to economists.
“It’s fair to say 2025 is a hiring recession in the United States,” Heather Long, chief economist at Navy Federal Credit Union, said in a note Friday. This recession affected both blue and white collar workers, he wrote.
U.S. employers added 584,000 new jobs last year, according to a Bureau of Labor Statistics report released Friday. This marks the worst year for total job gains outside of the recession since 2003, according to Long. He wrote that very few jobs have been created since April, meaning most gains occurred earlier in the year.
Most hiring is concentrated in the healthcare sector, making it difficult for workers to participate in the broader labor market, economists said.
“Health care alone accounted for roughly 69% of all job growth in 2025,” Nicole Bachaud, labor economist at career site ZipRecruiter, wrote in a note Friday. he wrote. “Relying on a single sector to keep job growth positive reveals the unstable foundation in play as we head into 2026.”
Long-term unemployment also increased. In December, 26% of unemployed workers had been unemployed for at least six months. highest share Since February 2022, according to the BLS.
This suggests that “unemployment is increasingly becoming a permanent condition rather than a temporary transition,” Bachaud said.
On Wednesday, the Bureau of Labor Statistics released the hiring rate It dropped to 3.2 percent in November. This is one of the lowest rates since 2013. LONG.
Job market likely to remain quiet for months
Overall, the current state of the labor market marks a sharp turnaround from the scorching market in 2021 and 2022.
At that time the so-called “The “Great Resignation” was in full swing, with job opportunities at record levels, wage growth at its highest level in recent years, and workers quitting their jobs en masse to move into better positions.
Economists have said that a labor market in which workers have significant influence is unsustainable in the long term.
The Federal Reserve has raised interest rates to help cool the labor market and rein in inflation, which has reached a nearly four-decade high in 2022.
Additionally, Long wrote, several factors have combined to create an anemic hiring environment: Tariffs, job uncertainty, economic policies such as over-hiring in recent years, and a reluctance to hire more workers until the use cases for artificial intelligence become clear.
The hiring recession will likely continue into the first half of 2026, but the second half will be better for job seekers due to tax cuts, lower interest rates and a clearer tariff picture, Long wrote.
How can job seekers stand out?
There are ways for job seekers to increase their chances of landing a new position, even in a lackluster hiring environment, according to job experts.
1. Highlight your skills and use AI to help
Sam DeMase, a career expert at ZipRecruiter, said employers and recruiters are gradually shifting to what’s called “skills-based recruiting,” meaning they prioritize a candidate’s skills and experience over educational achievement.
DeMase said ZipRecruiter data shows that 88% of entry-level jobs do not include degree requirements in the job description, and about 70% of new hires have less than a bachelor’s degree.
“Many employers want to hire people who can hit the ground running right away,” he said.
DeMase said job seekers should ensure there’s a “strong” fit between their job descriptions and the experience and skill sets they outline in their resumes and cover letters.
This helps candidates stand out among recruiters and get past the automated applicant tracking systems employers are increasingly relying on to sort applications, he said.
DeMase gave an example of what candidates might write to highlight the value proposition: “I’ve helped companies achieve Y using my background in X.” For example: “Using my background in digital marketing and extensive experience in data analysis and content planning, I have helped companies create innovative campaigns that attract and delight the ideal audience and increase revenue.”
Generic skill statements such as “I have good people skills and attention to detail” won’t be as useful in 2026, he said.
Priya Rathod, a career expert at Indeed, recommends that applicants use AI to match keywords in job descriptions to keywords on their resumes. This helps applicants get past the first round of background screening, he said.
2. Target growing business sectors
Rathod said it is important for job seekers to monitor employer demand.
He said workers should target specific areas of the growing job market, including health care, skilled jobs, infrastructure and income-critical jobs, especially in technology.
“Getting hired in 2026 doesn’t necessarily mean applying everywhere,” Rathod said. “It’s really about aligning your skills and where employers are actually investing.”
For example, an employee with a sales background may not have specific experience in healthcare sales but can hone their sales skills in a practice, Rathod said.
Consider transferable skills and look to enhance skills through additional credentials, licenses or certifications to fill gaps, he said.
3. Networking is your friend
Don’t ignore the value of networking, Rathod said.
Whether a person has a job, is unemployed, or has a part-time job and is looking for full-time work, “networking will always be one of your best friends,” he said.
This can happen in various ways: He said he interacts with industry and community organizations and talks to friends and colleagues in person and online.
4. Ignore the one-page resume ‘myth’
To further help bypass applicant tracking system firewalls, DeMase recommends some basic resume formatting guidelines.
For example, he said resumes should be in a single-column format with clearly labeled sections that include headings such as about me, accomplishments, work experience, areas of expertise and education, if applicable.
Resumes don’t have to be limited to a single page.
“There is a myth about the one-page resume,” he said. “Don’t sacrifice your experience to shorten your resume.”
DeMase said the resume can be two pages for people with five to 10 years of experience and three pages for people with more than 10 years of experience. However, these are not hard and fast rules and may vary by industry.
