A New World of Work: Global Labor Market Rotates, Not...

A New World of Work: Global Labor Market Rotates, Not Retreats Published on Jan 14, 2026 Categories: Company News, Data and insights

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Job Seekers Outpace Job Openings at Highest Level Since the Pandemic

LinkedIn Finds Over 1.3M New AI-Enabled Jobs Globally Are Fueling the New Collar Era of Work

As the global labor market cools, it's rotating toward a new era of work. Since 2022, businesses have grappled with pandemic spillover, interest rate hikes, and economic uncertainty. Meanwhile, professionals continue to struggle to find work, with hiring hanging roughly 20% below pre-pandemic levels and job transitions falling to a decade low. LinkedIn's new Labor Market Report: Building a Future of Work That Works reveals a labor market showing signs of growth, fueled by the more than 1.3 million new jobs globally that have emerged due to new technology and broader workforce shifts. These roles are giving rise to the new-collar era, an emerging workforce that blends knowledge work, advanced technical skills, and distinctly human strengths.

These fast-emerging roles are rising in demand. From AI integrators and data center technicians, to other jobs that didn't exist five years ago, these roles are now powering digital economies. Last year alone, there were over 600,000 new, AI-enabled data center jobs created globally on LinkedIn. These new-collar roles are poised to open broader pathways to economic opportunity. By 2030, 60% of new jobs will come from occupations that do not typically require a degree, according to the U.S. Bureau of Labor Statistics. Some of these roles will pay well and undergo the new collar transformation reshaping the labor market today.

Despite this, business leaders' confidence is down by double digits in advanced economies. The ongoing sluggish labor market is setting up a labor market dynamic characterized by a restless, underutilized global workforce as just over half (52%) of people say they're job hunting in 2026, and nearly 80% feel unprepared to find a new job.

This has professionals-particularly those early in their careers-turning more to entrepreneurship and other forms of self-employment. LinkedIn members adding founder to their profiles grew by 60% year over year globally, and creator grew nearly 90% between 2021 and summer 2025. These trends look to increase with nearly 4 in 10 Gen Z professionals expressing interest in working for themselves in the near future.

The message for leaders is clear: despite macro volatility, the business opportunities are vast from AI and changes in skills, to the emergence of new jobs. LinkedIn's new report points to a number of trends, shaping the labor market in 2026.

Sluggish Hiring Is Not AI's Fault

Despite headlines, AI isn't the culprit behind slow hiring. In fact, hiring trends look similar for roles with both the most and least exposure to AI as well as entry-level and experienced Software Engineers. LinkedIn data shows that economic uncertainty and monetary policy shifts are the primary drivers. Overall, advanced economies are struggling the most, with hiring down 20%-35% compared to pre-pandemic levels. Emerging markets like India (+40%) and the UAE (+37%) are showing ongoing strength. While AI's impact on work may shift in the years to come, business leaders should take advantage of strong available talent with job seekers outpacing job openings at the highest level since the pandemic. This is also a moment for leaders to rethink their talent strategies by leveraging AI-driven tools to speed hiring and build a pipeline for critical emerging roles.

Skills Are Shifting by Leaps and Bounds

In the U.S., jobs requiring AI literacy skills grew 70% year-over-year, as digital and data literacy have become the baseline across a variety of technical and non-technical job functions. Globally, 75% of companies agree that people skills are even more important in the age of AI, with employers now seeking employees who possess a blend of uniquely human capabilities like adaptability, problem-solving, and critical thinking. This blend of AI skills (both AI engineering skills and AI literacy skills) and distinctly human capabilities is what will give companies an advantage. It will be up to business leaders to embed upskilling into talent strategies, leveraging tools and programs that create pathways for employees to thrive in an AI-driven economy.

Jobs in the New-Collar Era Have Arrived

Over the past two years, 1.3 million new AI-enabled jobs have emerged globally: AI Engineers, Forward-Deployed Engineers, and Data Annotators. AI Engineer remains the #1 U.S. role for the second year running, while the growth of Head of AI roles signals a shift toward in-house strategic leadership. In fact, we've seen double-digit increases in companies with Head of AI positions across Australia (32%), Canada (31%), India (30%), Germany (30%), the UK (30%), and the U.S. (28%)-as well as other major economies over the last year. These roles demand hybrid skills, technical fluency, plus ongoing adaptability as they're forming the backbone of the new economy.

This transformation is also changing the types of jobs professionals want. LinkedIn research found increasing interest from workers, across all industries, in careers in the trades over corporate jobs, in the U.S. (62%), the UK (55%), France (52%), and Germany (46%). This trend is reinforced with nearly 6 in 10 Gen Zers in France (65%), U.S. (60%), Germany (57%), and the UK (55%) saying technical trades offer more meaning than an office job. These shifts look to progress as AI continues to transform the labor market.

"We're at an inflection point where technological change is driving talent strategy. AI is not the source of a slow hiring market, b

LINK:	https://news.linkedin.com/2026/2026-Davos-Press-Release...
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