Global Job Markets Weaken as Hiring Slows
Hiring momentum is slowing in several developed economies, with the Canadian Hiring Index showing easing job growth. A US Federal Reserve governor stated he would not be surprised to see negative job growth numbers, noting the March interest rate decision depends on February labor data. In the UK, a combination of AI automation and higher national insurance costs is contributing to a youth "jobless crisis," with job vacancies falling to their lowest level since the pandemic.
- In the United States, January 2026 saw an increase of 130,000 jobs, but the Bureau of Labor Statistics also revised the total job growth for 2025 down from a gain of 584,000 to just 181,000. - A recent study by Morgan Stanley revealed that the U.K. is being hit harder by AI-related job cuts than other major economies, experiencing a net loss of 8% of jobs over the past year, compared to a net gain in the U.S. - The youth unemployment rate (18-24 year olds) in the U.K. hit 16.1% in late 2025, surpassing the European Union's average for the first time since records began in 2000. This corresponds with a finding that UK firms highly exposed to AI are reducing junior positions by an average of 5.8%. - Canada’s unemployment rate fell to 6.5% in January 2026, not due to more hiring, but because 94,000 people stopped looking for work. The country saw a net loss of 25,000 jobs that month. - The International Labour Organization has downgraded its 2025 global employment forecast, now anticipating 53 million new jobs instead of the previously estimated 60 million, citing trade disruptions and geopolitical tensions as key factors. - In the U.S., the balance of power has shifted to employers, with the ratio of job openings to unemployed persons falling below pre-pandemic levels. This has led to what some analysts call a "slow hiring, slow firing" environment. - U.S. job growth is heavily concentrated in a few sectors; in January 2026, the health care and social assistance sector added 123,500 jobs, while sectors like government, finance, and transportation shed tens of thousands of positions. - Globally, demographic shifts are creating divergent challenges; aging populations in wealthier nations are leading to labor shortages, while low-income countries face difficulties creating enough jobs for their large youth populations.
