Employers are navigating a labor market shaped by technological disruption, shifting worker priorities and economic uncertainty, all while striving to attract and retain talent. Here are five trends to watch in 2026:
- The rise of gig work—Statista reported that more than 70.4 million Americans are currently involved in freelance work. By 2027, freelancers and gig workers are expected to become the majority of the workforce.
- Artificial intelligence (AI) redefined—AI is no longer just a productivity tool; it’s a workforce disruptor. According to Korn Ferry, 43% of companies plan to replace roles with AI.
- Burnout as a business risk—Half (48%) of workers cite overwhelming workloads as the primary reason for burnout, according to a DHR Global survey. As companies streamline teams and push for efficiency, employees often find themselves juggling more responsibilities without additional support. This can lead to employees working too many hours to keep up with rising expectations. Losing top performers due to burnout can create a vicious cycle for the employee experience.
- Layoffs reshaping talent pools—Resume.org found that 6 in 10 companies plan to lay off employees in 2026. While overall labor reports show that total employment and hiring activity have fluctuated at relatively normal levels, the proportion of layoffs has been significant and is expected to continue.
- Stability returning to the labor market—After several years of volatility, the labor market is showing signs of settling down. Indeed reported that job postings are expected to level off rather than surge or collapse, marking a shift from the rapid hiring cycles of the pandemic era.
These shifts present an opportunity for organizations to rethink how they approach hiring and retention.
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