The U.S. job market experienced a challenging start to 2026, with hiring rates plummeting to levels not seen since the early days of the COVID-19 pandemic. However, a significant shift is on the horizon, as a substantial majority of American businesses now indicate plans to expand their workforces in the latter half of the year. This projected uptick in hiring is particularly concentrated in critical sectors such as Human Resources, technology, and healthcare, signaling a robust demand for specialized talent.
According to recent data compiled by the staffing firm Robert Half, a compelling 66% of U.S. employers are intending to increase their permanent hiring during the second half of 2026. This figure represents a notable increase from the 60% who expressed similar intentions for the first half of the year and a more substantial jump from the 57% recorded a year prior. Furthermore, the survey reveals that 56% of American businesses plan to bring on contract talent, a strategic move aimed at acquiring specialized skills that have been in short supply. The urgency behind this strategy is underscored by the fact that nearly half of these employers have had to postpone or cancel projects specifically due to a skills gap, indicating that the cost of delayed hiring has become unsustainable.
Michelle Reisdorf, a district director at Robert Half, articulated the prevailing sentiment among employers, stating that many have reached a critical juncture. "Waiting longer to hire isn’t really an option anymore," Reisdorf explained to Fortune. "They have business priorities to move forward. They’re not hiring just to add headcount, but they are willing to invest in talent for roles that directly support those goals." This perspective highlights a strategic reorientation, where hiring decisions are increasingly tied to core business objectives and the need to drive growth and innovation.
Key Sectors Poised for Growth
The demand for talent is not evenly distributed across all industries. Technology professionals are at the forefront of employers’ hiring wish lists, with 78% of businesses looking to fill roles in this sector. Following closely are specialists in healthcare, with 75% of employers planning to hire, and professionals in finance and accounting, sought by 74% of businesses. The marketing and creative fields are also experiencing strong demand, with 65% of employers looking to expand their teams in this area, alongside legal professionals, who are in demand by 58% of companies.
Even amidst the increasing adoption of artificial intelligence and automation, which has led some companies to streamline support functions, demand for professionals in human resources (56%) and administrative and customer support (52%) remains remarkably high. This suggests that while AI may be enhancing efficiency in certain areas, the human element remains crucial for strategic HR functions and for maintaining effective customer relationships and operational continuity.
Skills Gap Persists Despite Hiring Intentions
Despite the projected increase in hiring, a persistent skills gap continues to challenge employers. When asked about the most difficult skills to find, businesses cited industry-specific knowledge (47%) as the primary obstacle. This is closely followed by proficiency in specialized software (42%) and essential leadership abilities (40%). The difficulty in sourcing these specific competencies highlights a disconnect between the available workforce and the evolving demands of the modern business landscape. This gap can hinder project execution, slow down innovation, and ultimately impact a company’s competitive edge.
A Difficult Road for Job Seekers
The optimistic outlook for employer hiring plans stands in stark contrast to the challenging reality faced by many job seekers throughout 2026. The early part of the year was marked by a significant slowdown in job creation. In June alone, U.S. employers added only 57,000 open roles, a figure less than half of the previous month’s total. This deceleration was attributed, in part, to prevailing economic uncertainties.
This hiring slowdown follows a period of substantial workforce reductions. According to a 2026 report from employment consultancy Challenger, Gray & Christmas, 2025 saw a staggering 1.2 million job cuts announced, representing a 58% increase from the approximately 760,000 layoffs recorded in 2024. This made 2025 the year with the highest level of workforce reductions since 2020 and placed it on par with the economic crisis of 2008, when 1.22 million roles were eliminated.
The precarious state of the job market has significantly eroded the confidence of American workers. Data from the Federal Reserve Bank of New York for 2026 indicated that the average perceived probability of finding a new job after losing one’s current role had fallen to 43.1% by December 2025. This represented a 4.2% decrease from the previous year and marked a record low since the surveys began tracking this data in 2013.
The decline in confidence was particularly pronounced among vulnerable demographics. Workers earning less than six figures, individuals without college degrees, and, perhaps surprisingly, baby boomers over the age of 60—who are nearing retirement—reported the lowest confidence levels in their ability to secure new employment.
Daniel Zhao, chief economist at employment site Glassdoor, commented on this trend earlier in the year, stating, "Americans don’t feel like the current job market is working for them. Workers on the lower end of the income spectrum or without a college degree are often more susceptible to the swings of the business cycle, so it’s natural for them to be more concerned about signs of an economic slowdown."
The job application process itself has also become an arduous undertaking. A 2025 analysis by The Wall Street Journal revealed that individuals in the 25-34 age bracket (Gen Z and millennials) experienced an average unemployment duration of 19 weeks, or nearly five months. For older workers, specifically Gen X and baby boomers aged 55 to 64, the average unemployment period stretched to 26 weeks, exceeding half a year. The report further highlighted a concerning statistic: a significant 24% of Gen X and baby boomers who had experienced layoffs were unable to find new employment. Even for those who did manage to secure a new position, 11% were compelled to accept a lower salary.
Broader Economic Context and Implications
The hiring landscape of 2026 is shaped by a complex interplay of factors, including ongoing geopolitical uncertainties, inflationary pressures, and the persistent integration of artificial intelligence into various business operations. The initial slowdown in hiring can be seen as a reactive measure by businesses navigating these uncertainties, leading to a period of caution and belt-tightening. However, the robust hiring intentions for the latter half of the year suggest a growing confidence in the market’s ability to absorb new talent and a recognition of the critical need to fill skills gaps to maintain competitiveness.
The demand for specialized talent in sectors like technology and healthcare is a testament to their enduring importance and the rapid pace of innovation within them. The healthcare sector, in particular, continues to face demographic pressures and evolving patient needs, necessitating a constant influx of skilled professionals. Similarly, the technology sector’s rapid advancements, driven by AI and other emerging fields, require individuals with cutting-edge expertise.
The persistent demand for HR and administrative roles, even with AI advancements, underscores the irreplaceable value of human interaction, strategic planning, and nuanced communication in business operations. These roles often involve complex problem-solving, relationship management, and the implementation of organizational policies, areas where AI currently serves as a tool rather than a replacement.
The challenges faced by job seekers, particularly older workers and those without advanced degrees, highlight the need for continued investment in reskilling and upskilling initiatives. As the job market evolves, ensuring that all segments of the workforce have access to training and development opportunities will be crucial for fostering inclusive economic growth and mitigating the potential for widening inequality. The longer unemployment spells and pay cuts experienced by some demographics signal a need for targeted support programs and proactive career development strategies.
The data compiled by Robert Half and corroborated by other economic indicators paints a picture of a dynamic and somewhat bifurcated job market. While businesses are signaling a strong intent to hire, driven by strategic imperatives and the need to address skills shortages, job seekers continue to navigate a landscape marked by intense competition and evolving demands. The coming months will be critical in determining whether the projected hiring surge materializes and whether it effectively alleviates the challenges faced by those seeking employment.
This article was originally written by Emma Burleigh for Fortune and is republished here under a syndication agreement with Reuters Connect.
