The recruiting trends of 2026 that the data supports: a low-churn labor market, candidates using AI, rising candidate fraud, new AI hiring rules, a federal policy shift and an entry-level rebound, each with what to do.
- The labor market is “low churn”: in August 2026 the U.S. quits rate was 1.9% and the hires rate 3.3%, so fewer people are changing jobs on their own.
- Gartner found 39% of candidates used AI during the application process and predicts that one in four candidate profiles worldwide will be fake by 2028; identity checks now belong in the hiring process.
- AI hiring tools face specific local and state rules, including New York City’s bias-audit law and California regulations effective October 1, 2025.
- Federal policy has shifted away from disparate-impact enforcement, but state laws still apply and job-related, consistent selection remains the safest practice.
- NACE’s spring 2026 update shows employers projecting 5.6% more hiring of new graduates, reversing a negative fall forecast.
In this article
The recruiting trends of 2026 that hold up against the data are fairly plain: a slow-moving U.S. labor market with few quits, candidates using AI in their applications, rising candidate fraud, new state rules for AI hiring tools, a federal step back from disparate-impact enforcement, less weight on degrees, and a spring rebound in entry-level hiring. Each trend below is dated and sourced, as of October 2026.
Recruiting trends 2026 at a glance
| Trend | Evidence (date) | What to do |
|---|---|---|
| Low-churn labor market | Quits rate 1.9%, hires rate 3.3% (BLS JOLTS, August 2026) | Expect harder passive-candidate moves; sell stability and growth, not just pay |
| Slower job growth, more applicants | Unemployment 4.2%, +29,000 payroll jobs (BLS, September 2026) | Plan for bigger applicant pools; tighten screening criteria and response times |
| Candidates using AI | 39% used AI in applications; 26% trust AI to evaluate them fairly (Gartner, July 2025) | Use work samples and live exercises; tell candidates how you use AI |
| Candidate fraud and fake identities | One in four profiles fake by 2028 (Gartner prediction); FBI warning on North Korean IT workers (January 2025) | Add identity verification at interview and onboarding |
| Rules for AI hiring tools | NYC Local Law 144 enforced since July 5, 2023; California regulations effective October 1, 2025 | Inventory your AI tools, audits, notices and record retention |
| Federal shift on disparate impact | Executive Order 14281 (April 23, 2025) | Keep validating selection steps; state rules still apply |
| Less weight on degrees | EO 14281 directs EEOC and DOJ guidance on hiring regardless of college education | Review degree requirements against the actual job |
| Entry-level hiring rebound | +5.6% projected graduate hiring (NACE, April 2026) | Restart or expand campus and intern pipelines |
A low-churn labor market: fewer quits, slower hiring
The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey for August 2026 (released September 29, 2026) showed 7.1 million job openings (a 4.3% rate), 5.2 million hires (3.3%) and 3.1 million quits (1.9%). Layoffs and discharges stayed at 1.6 million (1.0%). BLS described hires as changing little over the month and the year.
The September 2026 Employment Situation (released October 2, 2026) reported a 4.2% unemployment rate, payroll growth of just 29,000, and 1.9 million long-term unemployed, 27.1% of all unemployed people. Average hourly earnings for private employees were $37.81, up 3.0% over 12 months.
What this means for recruiting:
- Passive candidates are harder to move. With quits low, employed people are staying put. Outreach has to give a concrete reason to change: scope, stability, schedule, a clear next step up.
- Active applicant pools are larger. More applications per opening means screening speed and clear criteria matter more than volume. Our guide to resume screening covers how to set knock-out criteria.
- Pay pressure is moderate. With wage growth around 3%, check offers against current market data rather than last year’s bands; see our salary benchmarking methods.
Candidates are using AI, and trust is low
In a Gartner survey released July 31, 2025, 39% of candidates said they used AI during the application process, while only 26% trusted AI to evaluate them fairly. That combination shapes 2026 hiring in two ways.
First, polished resumes and cover letters tell you less than they used to. Put more weight on evidence produced in your process: a short work sample, a structured interview with follow-up questions, or a live problem-solving exercise. Second, candidates are wary of being screened by software. Say plainly in the posting or first email where AI is used, where people make the decisions, and how to request an accommodation.
Our AI in recruitment guide covers which uses are working on the employer side.
Candidate fraud is now an operational risk
The same Gartner release predicts that by 2028, one in four candidate profiles worldwide will be fake. The risk is not theoretical. In a public service announcement dated January 23, 2025, the FBI warned that North Korean IT workers have obtained remote jobs, stolen data and extorted employers, and that some used AI and face-swapping technology during video interviews.
The FBI’s recommended mitigations translate into a short checklist for remote and technical hiring:
- Verify identity during interviewing, at onboarding and periodically during employment.
- Cross-check applicants for reused phone numbers (especially VoIP), email addresses or near-identical resumes.
- Flag changes to address or payment details during onboarding.
- Hold at least one interview or the onboarding session in person where practical.
- Confirm that staffing vendors you use follow sound identity-verification practices.
AI hiring tools face state and local rules
If you use software to screen, rank or score candidates, two sets of rules are already in effect:
- New York City Local Law 144. Employers and employment agencies may not use an automated employment decision tool unless it has had a bias audit within the past year and a summary is public, and they must give candidates notice. The city’s Department of Consumer and Worker Protection began enforcement on July 5, 2023.
- California. Civil Rights Council regulations on automated-decision systems took effect October 1, 2025. They confirm that an automated system can violate state anti-discrimination law, require employers to keep automated-decision data for at least four years, and note that AI assessments that draw out information about a disability may be an unlawful medical inquiry.
Other states have passed or are debating similar laws, with changing effective dates. Keep an inventory of every AI-enabled hiring tool you use, what it decides, which locations it covers, and whether audits and notices are in place.
This is general information, not legal advice. Check with employment counsel for your situation.
Federal policy steps back from disparate-impact enforcement
Executive Order 14281, signed April 23, 2025, directs federal agencies to “deprioritize enforcement of all statutes and regulations to the extent they include disparate-impact liability,” and told the Attorney General and the EEOC Chair to review pending matters that rely on that theory.
An executive order changes federal enforcement priorities; it does not change state law, and state rules such as California’s regulations above still apply. The practical advice is unchanged: use selection steps that are job-related and applied consistently, keep records, and review results by group. Our guides to the employee selection process and reducing hiring bias cover how.
Degree requirements get a second look
The same executive order directs the Attorney General and the EEOC Chair to jointly issue guidance to employers on promoting equal access to employment regardless of whether an applicant has a college education, where appropriate. Whatever your view of the order, it adds federal weight to a question many employers were already asking: does this job need a degree, or does it need skills that can be tested?
A quick audit for each high-volume role: list the tasks, list the skills each task needs, then mark whether a degree is the only reasonable evidence of those skills. Where it isn’t, replace the requirement with a skills assessment or equivalent experience. See our skills-based hiring guide for assessment options.
Entry-level hiring is recovering
The National Association of Colleges and Employers’ Job Outlook 2026 Spring Update (April 27, 2026) found employers projecting a 5.6% increase in hiring Class of 2026 graduates (median). That is a reversal from NACE’s fall 2025 survey, when most employers expected to hold hiring flat and a plurality rated the graduate job market “fair”. Employers with more than 5,000 employees projected an 8.7% increase.
If you paused intern or graduate hiring, the fall 2026 recruiting season is the time to restart: competitors are coming back. Our campus recruiting guide covers the calendar and channels.
A 2026 recruiting checklist for HR teams
- Review time-to-respond and time-in-stage; large applicant pools punish slow processes.
- Add a work sample or live exercise to roles where AI-written applications make resumes less informative.
- Put identity verification into remote hiring and onboarding.
- Inventory AI hiring tools by location, with audit, notice and record-retention status.
- Keep running adverse-impact checks on selection steps, regardless of federal priorities.
- Audit degree requirements on your highest-volume roles.
- Re-benchmark pay ranges against current wage data.
- Restart campus and intern pipelines if they were paused.
How Careerscape can help
Careerscape is a U.S. staffing and recruiting firm offering direct hire, contract, temporary staffing, executive search and RPO across many industries and metro markets. If a slow market is stretching your team or you need help screening large applicant pools, talk to us about hiring support, or check current pay ranges in our free Salary Guide.
Frequently asked questions
What are the biggest recruiting trends in 2026?
The trends with the strongest evidence are a low-churn U.S. labor market (August 2026 quits rate of 1.9%), wide candidate use of AI in applications, growing candidate fraud and identity risk, state and local rules for AI hiring tools, a federal shift away from disparate-impact enforcement, less emphasis on degree requirements, and a rebound in projected entry-level hiring.
Is 2026 a good year for hiring?
For employers, it is a market with more applicants and fewer voluntary job changers. In September 2026 unemployment was 4.2% and payrolls grew by just 29,000, according to BLS. That makes it easier to attract active job seekers but harder to pull employed people away from stable jobs, especially in specialized roles.
How is AI changing recruiting in 2026?
On the candidate side, Gartner found 39% of applicants used AI in the application process, which makes resumes and cover letters less informative. On the employer side, AI screening tools are increasingly regulated, for example by New York City’s bias-audit law and California’s automated-decision regulations. Employers are responding with more work samples, structured interviews and clear disclosure.
What should HR do about fake candidates?
Verify identity at more than one point: during interviews, at onboarding and periodically after hire. The FBI also recommends cross-checking applicants for reused contact details, watching for payment or address changes during onboarding, holding some steps in person, and confirming that staffing vendors follow sound verification practices.
- BLS: Job Openings and Labor Turnover Summary, August 2026
- BLS: The Employment Situation, September 2026
- Gartner: Survey Shows Just 26% of Job Applicants Trust AI Will Fairly Evaluate Them (July 31, 2025)
- FBI IC3: Public Service Announcement I-012325-PSA on North Korean IT workers (January 23, 2025)
- NYC DCWP: Automated Employment Decision Tools
- California Civil Rights Department: Regulations on AI and Employment Discrimination
- The White House: Executive Order 14281, Restoring Equality of Opportunity and Meritocracy
- NACE: Outlook Brightens for College Class of 2026 (April 27, 2026)
- NACE: Hiring Flat for the College Class of 2026 (November 2025)