Payroll gains have slowed. Entry-level roles are in a steep decline. More than half of Americans say they plan to search for a new role this year, despite most feeling unprepared to do so.
The U.S. economy added 50,000 jobs in December. Payrolls rose by 584,000 over the course of 2025, the smallest yearly gain since 2010 (outside the pandemic).
LinkedIn's Workforce Confidence Index remained stuck at +5 (scale of -100 to +100) in November and December—the lowest reading for this time of year on record.
Entry-level and junior roles show steepest year-over-year hiring declines, with middle-management seeing largest quarter-over-quarter drop.
Job seekers don't feel prepared: More than half of professionals (56%) plan to job-hunt in 2026, yet 76% say they don't feel prepared.
There are still pockets of opportunity, by sector and region. LinkedIn data shows year-over-year hiring increased in manufacturing (+4%) and technology, information and media (+3%). Regionally, Miami led with +7% growth, followed by Detroit (+6%) and Minneapolis (+5%).
Roles with momentum include AI engineers, AI consultants, data annotators, founders and independent consultants.
Read more via LinkedIn
The Trump administration's changes to the H-1B visa lottery system are prompting employers to “reevaluate workforce planning and hiring strategies.”
(For more on the H-1B changes, check out last week's Need to Know Briefing.)
Beginning February 27, the new H-1B visa lottery rule will take effect, offering greater odds to workers who are "placed in the highest of four wage levels."
Experts say employers may “alter the types of foreign workers they hire, outsource roles to other countries, or turn to other, more limited, visa options.”
Companies may choose to pass on entry-level or mid-level key talent as the chances of ultimately securing a H-1B decreases.”
Employers that have recruited H-1B applicants from "top US universities" will also likely shift their strategy, since the new rule gives an advantage to workers with more seniority, according to experts.
Experts say employers may also expand the extent to which they use the L-1 visa, which "allows companies to temporarily transfer certain employees from their foreign offices to US offices."
In the tech sector in particular, employers may be inclined to outsource more jobs.
Read more via Bloomberg Law, USCIS, Federal Reserve Bank of Richmond
Amazon is allowing employees who are "stranded in India due to visa delays" the opportunity to work remotely until March, according to Business Insider.
Amazon is making an exception to its regular five-day in-office requirement.
Additional H-1B screening requirements imposed by the Trump administration have resulted in delays in visa processing, "leaving some employees stranded outside the country."
Amazon's impacted employees in India are being permitted to "work remotely until March 2."
Amazon put restrictions in place as to what those employees can -- and cannot -- do while working remotely.
For example, impacted workers cannot code. They also cannot "undertake any strategic business decisions" or "negotiate any contracts."
Other major employers, including Google, Apple and Microsoft, have recently issued “travel advisories … warning US employees with visas to avoid international travel to prevent extended stays outside the US.”
Read more via Business Insider, NPR
The Trump administration's long promised immigration crackdown has ramped up in recent weeks, as have tensions between protestors and immigration enforcement personnel.
Immigration enforcement actions in Minnesota
More than 2,000 federal agents are now working in the greater Minneapolis area, according to reporting by CBS News.
According to the Star Tribune, the wider immigration crackdown is impacting employers, with ICE "increasingly targeting small and mid-sized businesses in Minnesota."
Employment law experts say the "sheer quantity" of employer enforcement actions is unprecedented.
The state of Minnesota joined the cities of Minneapolis and St. Paul in suing the administration as part of an "effort to stop the surge of ICE agents."
Activists are "calling for a day of protest on Jan. 23 with no work, school or shopping."
Last week, President Trump "threatened to invoke the Insurrection Act" in response to increased anti-ICE protest activity. The 1800s law would allow his administration to deploy U.S. military personnel within the U.S.
Officials in other states are bracing for ICE enforcement to ramp up:
Maine: Officials in Portland and Lewiston, Maine are expecting "heavy immigration enforcement … in the coming days."
Massachusetts: Officials in Boston are "privately getting ready for a potential spike in Immigration and Customs Enforcement activity," according to news reports.
Ohio: Cleveland police made a "rare statement" last week, stating they "would not assume responsibility for immigration enforcement," and promising to "never ask about an individual’s immigration status."
New Jersey: Legislators have passed three bills aimed at protecting immigrants from ICE enforcement. All three bills still require a governor's signature.
New York: Immigration agents detained a New York City Council employee last week. City Hall officials and immigration officials "offered conflicting information about the staff member’s immigration status and criminal history."
California: Immigration crackdowns continue in southern California, including workplace raids, which began more than six months ago.
Read more via The Wall Street Journal, CBS News, Star Tribune, Kare11, The Wall Street Journal, New York Post, Bangor Daily News, Axios, Cleveland.com, WHYY, NBC Los Angeles, The New York Times
Tariff-related costs have triggered increased job cuts and reduced business investment capacity among supply chain professionals, according to a new survey by the Association for Supply Chain Management and CNBC.
Key findings from ASCM survey of supply chain managers:
The number of supply chain managers reporting layoffs doubled from 16% in April to 32% currently.
65% reported cost increases of at least 10%-15%, with 34% experiencing increases exceeding 15%.
Survey of 220+ supply chain managers conducted December 15, 2025 through January 7, 2026.
Companies report lost productivity from administrative burden of tariff compliance paperwork.
Even if the Supreme Court orders tariff refunds, businesses say operational and workforce impacts cannot be undone.
Tariffs just don't hit the balance sheet. They hit the people. We're seeing layoffs because of companies trying to manage their cost structure."
Read more via CNBC
At least some experts believe that the country's "economic resilience" is the result of how easy Switzerland makes it for companies to restructure, according to Bloomberg.
Switzerland offers the "least strict" restrictions when it comes to allowing organizations to restructure.
While employers can easily "shed workers," Switzerland also offers “generous state support to cushion the blow for laid-off workers.”
Switzerland’s economic resilience is showcasing the prowess of one of Europe’s most business-friendly domains, where companies can fire workers with relative impunity."
Read more via Bloomberg
Hungary: About 25% of Hungarian employers "currently offer the option of working from home to at least some of their employees," according to a new survey by GKI Economic Research Institute. The same survey indicates that 75% of employers "do not plan to change this practice over the next one to two years." The survey found remote work to be "most widespread in the services sector and particularly common among large companies, where 83 per cent apply some form of remote work." (Hungarian Conservative)
Italy: Unemployment declined year-over-year in November, falling 0.4% to 5.7%, according to the Italian National Institute of Statistics (ISTAT). The total number of employed persons increased 0.7% (+179,000) in November 2025 over November 2024. (SIA)
Malaysia: The country's unemployment rate "fell to its lowest level in 11 years in November 2025, dropping to 2.9% from 3.2% in November 2024 and from 3.0% in October 2025," while the "number of employed persons also maintained its upward trajectory, rising by 0.2% to 17.09 million persons compared with October 2025’s 17.06 million persons." (SIA)
United Kingdom: 56% of UK employers are planning to "expand their permanent IT and technology teams" in the first six months of this year, according to Robert Half. That's an 11% increase over the first half of 2025. Robert Half also reported an expected rise in contract hiring, with "39% of employers set to boost flexible technology resourcing to meet rising project and transformation demands." (SIA)
