U.S. labor market activity is cooling as employers evaluate their needs and recalibrate their hiring plans for 2026, according to a Dec. 11 report from iCIMS, a talent acquisition technology provider.

Hiring remained steady in November, though applications and job openings increased year over year. This indicates that employers may be prioritizing efficiency, role quality and long-term strategic fit going into the next year, the report found.

“The drop in November aligns with what we typically see at year-end, but it also reflects employers being more intentional with how and when they hire,” Trent Cotton, head of talent acquisition insights at iCIMS, said in a statement. “The data suggests recruiting teams are recalibrating their workforce plans for 2026, giving recruiting teams the perfect time to further develop their talent pipelines for the new year.”

In mid-2025, 1 in 5 CHROs said they planned to decrease hiring during the next six months, nearly doubling the 11% who said the same in 2024, according to a report from The Conference Board. HR leaders said they intended to brace for change by investing in training for leaders and managers.

The iCIMS report found that artificial intelligence tools and data have become increasingly important as companies navigate more measured labor activity. In particular, employers are using these tools to improve efficiency, reduce friction and create stronger candidate experiences.

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