Quarterly Hiring Insights: The Market Is Shifting Again

As we head into the final stretch of 2026, the hiring market continues to evolve—and with it, the priorities shaping how companies build their teams and professionals navigate their careers.

‍

Employers remain measured in their approach to headcount, but the conversation is becoming increasingly strategic. Organizations are taking a closer look at where exceptional talent can create the greatest impact and which investments will best position the business for what comes next.

‍

At the same time, traditional career paths are becoming less linear, compensation strategies more targeted, and AI is changing how both employers and candidates approach hiring.

‍

Our latest insights look at how these shifts are playing out—and what they signal about the direction of the market.

‍

Here’s what we’re watching as 2026 draws to a close.

The Talent Market Is Tilting Toward Experience

As employers consolidate responsibilities and prioritize candidates who can make an immediate impact, fewer early-career professionals are gaining the experience needed to grow into more senior roles—creating a potential talent gap hiring managers can’t afford to overlook.

‍

According to Indeed Hiring Lab, senior-level job postings increased between January 2025 and May 2026, while both entry- and mid-level postings declined.

‍

But the shift is happening on the candidate side, too. According to the same report, 49% of applications from professionals with 10+ years of experience went to entry-level roles, while just 12% went to senior-level opportunities.

‍

Together, these trends are blurring the lines between professional experience and job-specific seniority. An experienced candidate pursuing a more junior role may be making a career pivot, changing industries, prioritizing stability, or simply looking for something different.

‍

How our clients are responding:

• Looking beyond titles and years of experience. Employers are digging deeper to understand why a candidate wants the role and what they can bring to it. As career paths become less linear, the right fit may not always look like the traditional next step.
• Investing in the next generation of talent. Some employers are taking a longer-term view of entry-level hiring. Bringing in high-potential professionals earlier gives companies an opportunity to develop critical skills, build institutional knowledge, and create a stronger pipeline for future mid- and senior-level roles. In a market where fewer professionals are getting that foundational experience, hiring and developing entry-level talent today can help prevent bigger talent gaps tomorrow.

Employers Are Getting More Strategic About Pay

Hiring budgets for 2027 are coming into focus, and employers appear to be taking a more targeted approach.

‍

According to WTW’s latest Salary Budget Planning Report, U.S. employers are projecting average salary increase budgets of 3.4% for 2027, compared with 3.5% in 2026.

‍

But the bigger story is how those budgets are being used.

‍

WTW found that 33% of organizations are adjusting their compensation programs, with strategies including higher salary ranges, retention bonuses or spot awards, and higher starting salaries.

‍

Compensation also remains a top priority for candidates. In our Mid-Year 2026 Job Seeker Survey, salary ranked alongside job stability as a leading consideration, ahead of benefits and career growth.

‍

How our clients are responding: Rather than increasing compensation across the board, employers are taking a more strategic approach—directing pay increases toward high-impact roles, in-demand skills, and the talent they’re most focused on attracting and retaining.

AI Is Changing Hiring — But Is It Improving It?

AI is quickly becoming part of the hiring process, but adoption is moving faster than confidence in the results.

‍

Recent research from MyPerfectResume found that:

• 73% of employers surveyed are using AI in hiring decisions, yet only 57% believe it improves hiring outcomes.
• Nearly half (47%) said AI has filtered out candidates they personally would have advanced.

Candidates are feeling the effects, too. In our Mid-Year 2026 Job Seeker Survey, respondents identified being filtered out by AI or automated systems as one of their biggest challenges when searching for a job.

‍

AI and automation can help hiring teams process information, identify potential matches, and manage large applicant pools. But automated screening may miss important context, like a career change, employment gap, unconventional background, or transferable skills.

‍

How our clients are responding: Employers are pairing technology with trusted recruiting expertise to make more informed hiring decisions. Our recruiters go beyond keywords and application data to understand the full candidate story—evaluating experience, transferable skills, career trajectory, motivations, and alignment with each client’s culture and goals. Combined with our deep talent networks and market expertise, this hands-on approach helps clients uncover exceptional candidates who may otherwise be overlooked and gives them greater confidence in who moves forward.

Seasonal Hiring Starts Before the Holiday Rush

For many employers, Q4 brings a different set of workforce needs. Retailers and consumer brands are preparing for the holiday season, while companies across industries are planning for employee vacations, year-end projects, events, increased customer demand, and temporary gaps in coverage.

‍

Seasonal support can help fill those gaps, from retail and customer-facing staff to administrative, event, hospitality, and project-based talent.

‍

Candidates are open to these opportunities, too. In our Mid-Year 2026 Job Seeker Survey, about half of respondents said they were open to temp-to-hire opportunities, freelance, or project-based contracts.

‍

How our clients are responding: Employers are anticipating coverage gaps and peak periods earlier, building seasonal and temporary talent pipelines before needs become urgent. This gives teams more time to find and onboard the right support before demand reaches its peak.

‍

Transparency Is Becoming a Hiring Advantage

A more competitive job market may give employers access to a larger applicant pool, but candidates are still paying close attention to how opportunities are presented and how they’re treated throughout the hiring process.

‍

According to Career Group Companies Mid-Year 2026 Job Seeker Survey, compensation not being disclosed or falling below expectations was the #1 hiring red flag. Lack of communication or delayed responses also ranked among candidates’ biggest challenges.

‍

Other common red flags included:

• Poor interviewer behavior or disorganization
• Negative company reviews or culture reputation
• Unclear job descriptions or unrealistic expectations
• Too many interview rounds

On the other hand, a clear salary range was the biggest factor helping a job listing stand out, reinforcing the value of transparency from the start.

‍

How our clients are responding: Leading hiring teams are focusing on clarity and communication throughout the process, from accurately defining the role and compensation range to aligning interviewers and keeping candidates informed between stages. A thoughtful candidate experience can make a meaningful difference in attracting and closing the right talent.

‍

Ready for What’s Next?

Career Group Companies helps leading organizations build exceptional teams across administrative and corporate services, creative and marketing, fashion and beauty, finance and accounting, human resources, executive search, event staffing, hospitality, private services, and more.

‍

Whether you’re planning for future growth or need exceptional talent now, our recruiting experts bring deep market knowledge, extensive talent networks, and a personalized approach to every search. We’ll help you navigate the market, identify the right talent, and build a hiring strategy designed around your business, culture, and goals.

‍

Let’s Build Your Team.

‍

Connect with our Recruiting Experts

‍