If the job search right now seems slower, more selective, or harder to break into, you’re not imagining things. New Monster research shows that many employers are putting more energy into retaining the talent they already have than expanding their workforce.
In Monster’s 2026 Hiring WorkWatch Report, a survey of 800 U.S.-based hiring decision makers, 52% say retaining existing employees will be their top priority in 2026, compared to 45% who prioritize hiring new talent.
Employers also report that it is still difficult to find qualified candidates, with 64% reporting difficulty. This partly explains why many organizations invest more in internal development and skills building.
What does a retention first year mean for you as a job seeker? It doesn’t mean hiring is off. It means hiring can be more deliberate and candidates may need to be more specific about the value they bring.
People are still being hired, but employers are becoming more picky
Even with retention at the top of the priority list, employers are still hiring. The process can feel slower and more selective as teams focus on fitness, skills and costs.
Monster’s research identifies several operational factors that can slow hiring, including:
- Finding qualified candidates (64%)
- Salary and employment conditions expectations (44%)
- Addressing skills shortages (30%)
- Competition from other employers (27%)
- Meeting external and hybrid expectations (24%)
What to do
Make your resume and LinkedIn profile very specific to the positions you are seeking. Lead with skills and results, not just responsibilities. Share what you improved, saved, shipped, or supported. If you are a pivot, translate your experience into the exact language of the job description.
Upskilling is a real employer strategy, especially around AI
Employers aren’t just talking about AI. They invest in:
- 74% plan to invest in AI training or employee upskilling by 2026
- 41% are already using AI in recruitment or workforce management
- 31% plan to use AI tools soon
What to do
Build practical AI fluency. Focus on how you use AI to do your work, not just on the common good. Be prepared to explain your approach to accuracy, verification, and assessment. If you’ve used AI tools for writing, analytics, customer support, project work, or productivity, describe the workflow and outcome.
The return to office policy will impact recruitment and your options
Workplace policies are part of the recruitment puzzle:
- 54% of employers say return-to-office mandates have made hiring more difficult
- 72% expect their current hybrid or on-site policy to remain unchanged
- 22% plan to increase demands in the office
What to do
Determine early what your non-negotiables are, such as remote, hybrid or commuting distances, and search accordingly. If you are open to hybrid or on-site roles, say so clearly. Flexibility can expand your options. If you prefer remote work, strengthen your candidacy with tight positioning, a skills match and work samples.
The early years of retention can be leverage years for the right move
When employers prioritize talent retention, internal advancement and development can become more important. This can go both ways for job seekers. Some reels may open more slowly. At the same time, employers can value candidates who can fill real gaps and scale quickly, especially in mid-level roles.
What to do
If you are employed, consider asking about growth paths, training budgets or internal mobility. If you are looking for a job, show how you can help solve immediate problems for the team.
Employers are concerned about the economy, and that drives decisions
When asked about the top workforce concerns in 2026, hiring leaders most often identified:
- Economic uncertainty (48%)
- Retain talent (41%)
- Attract qualified candidates (39%)
- Pressure to increase wages (36%)
- Skills gaps (29%)
- keeping pace with AI and automation (26%)
What to do
Expect more oversight of compensation. Be prepared with a clear scope and rationale. Emphasize reliability, adaptability and the ability to learn, especially as the company deals with change.
In short: hiring has not stopped, it is becoming more and more conscious
The big signal from the data is that many employers are prioritizing stability in 2026. They are keeping strong employees, building skills internally and applying AI thoughtfully.
For job seekers, differentiation will depend less on broad claims and more on specific evidence: the skills you have, how you apply them and the results you’ve achieved.
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