LinkedIn Highlights Tighter Job Market, Rising AI Use

New research from LinkedIn points to a growing disconnect in the labor market, as job seekers face rising competition while recruiters report increasing difficulty finding qualified candidates, underscoring the expanding role of AI in hiring and job searches.

Finding a job is significantly more challenging, according to LinkedIn data, with nearly 65% of respondents reporting difficulty. The primary obstacles cited are increased competition, followed by uncertainty regarding a candidate's suitability for a role, and a mismatch between candidate skills and job requirements.

Recruiters, meanwhile, are managing a smaller number of open positions but under greater pressure to fill them efficiently. About 66% of recruiters say it has become harder to find qualified talent over the past year. Many also reported increased expectations to fill roles faster, which was cited by 42%, and to identify so-called “hidden gem” candidates who may not stand out through traditional screening, cited by 39%.

AI is emerging as a central tool on both sides of the labor market. According to LinkedIn, 93% of recruiters plan to increase their use of AI by 2026, with 59% saying AI is already helping them identify candidates with skills they might not otherwise have found. Two-thirds of recruiters said they plan to expand the use of AI for pre-screening interviews, and 70% believe this will lead to more productive conversations with candidates.

Job seekers are also adopting AI at scale. LinkedIn found that 81% of people either already use or plan to use AI in their job search, and 48% said AI tools help boost their confidence during interviews.

LinkedIn says it is expanding its AI-driven tools to support both professionals and employers navigating the competitive environment. AI-powered job search allows job seekers to describe roles in plain language rather than relying on specific titles or keywords, says the company. The feature is used by more than 1.3 million members daily and supports more than 25 million searches each week. It is being rolled out globally in English, Spanish, French, German, and Portuguese.

Additional tools include Job Match, which shows how closely a candidate’s profile aligns with a role’s requirements. LinkedIn says the feature has reduced applications to low-match roles by 10% among US Premium subscribers. AI-powered people search also allows members to identify relevant contacts across the platform using natural language, supporting networking for career changes, business launches, or relocation.

LinkedIn highlights profile verification as another factor influencing hiring outcomes. Verified profiles receive 60% more views and 30% more connection requests, according to the company, and are more likely to receive responses during the job search process. Professionals can also reference LinkedIn’s annual Jobs on the Rise ranking, which tracks fast-growing roles and outlines in-demand skills and hiring locations.

For employers, LinkedIn is expanding AI tools designed to accelerate recruitment. Small businesses can use Hiring Pro, an AI agent that helps identify, shortlist, and contact candidates. Nearly 60% of users find a candidate to interview within the first week, says the company. New features, including AI-powered interviews and personalized InMail messages, are expected to roll out in the coming months.

Recruiters can also use Hiring Assistant, an AI agent aimed at surfacing qualified candidates more efficiently. LinkedIn said companies including AMD, Siemens, Expedia Group, and Wipro are using the tool, with early adopters reporting time savings of more than four hours per role, fewer profile reviews and higher InMail response rates.