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

Job Seekers Outpace Job Openings at Highest Level Since the Pandemic: LinkedIn Finds Over 1.3M New Jobs Globally Are Fueling the “New Collar” Era of Work

Sunnyvale, CA; January 14, 2026—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. Today, LinkedIn’s 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 integration and data center technicians, to other jobs that didn’t exist five years ago are now powering digital economies. Last year alone, there were over 600 thousand new 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, some of which will be high paying, according to the U.S. Bureau of Labor Statistics.

Despite this, business leaders’ confidence is down by double digits in advanced economies as trends—including AI, massive skills change, and the emergence of new jobs start to reshape work. Business leaders’ hiring caution is setting up a labor market dynamic where it clashes with a restless, underutilized workforce. 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—also turning to entrepreneurship and other forms of work. LinkedIn members adding “founder” to their profiles grew by 60% year over year globally, and “creator” grew 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 business leaders is clear: Despite macro volatility, there are vast opportunities for those who can seize them. 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. LinkedIn data shows economic uncertainty, and monetary policy shifts are the primary drivers. In addition, hiring trends look similar for roles with both the most and least exposure to AI. 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. The 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-related jobs have emerged globally: AI Engineers, Forward-Deployed Engineers, Data Annotators, and Data Center Technicians. 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 professionals across the U.S. (62%), the UK (55%), France (52%), and Germany (46%) prefer a trade career instead of a corporate job. 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, but it is changing where opportunities and jobs are forming.  Leaders who embed skills development and adaptability into their organizations are better positioned for future uncertainty and new growth opportunities. As leaders, we need to build a workforce that is ready for what’s next,” said Dan Shapero, LinkedIn’s Chief Operating Officer.

“For years, most of the global labor market has been stuck in a low gear with very little momentum. Now we’re seeing AI emerge as a catalyst for new roles, upskilling, and productivity,” said Karin Kimbrough, LinkedIn’s Chief Economist. “This creates an opportunity for business leaders to play the long game now by embracing change, building resilience, and investing in the most important skills to unlock growth.” 

Helping Shape a New World of Work 

On LinkedIn, we’re seeing firsthand how these trends are starting to transform work for professionals and companies. For professionals, upskilling and a strong professional network are no longer optional—they are foundational to staying competitive in a rotating labor market. With LinkedIn Learning, members are building AI skills 3.4x faster year over year. 

For companies, incorporating updated talent strategies alongside clear skilling pathways is essential to help employees succeed in the new collar era. During a time of mounting applications and limited open roles, companies leveraging AI-driven tools are helping cut time to hire by 30%, which allows them to find qualified talent faster. And data from LinkedIn’s Career Hub shows that AI talent pipelines grew 8.2x when organizations looked inward and prioritized skills. LinkedIn gives job seekers and hirers what they need to navigate a labor market that keeps shifting: AI tools that deliver results, real-time insights, and a network they trust.

About LinkedIn

LinkedIn connects the world’s professionals to make them more productive and successful and transforms how companies hire, learn, market, and sell. Our vision is to create economic opportunity for every member of the global workforce through the ongoing development of the world’s first economic graph. LinkedIn has over 1.2 billion members and has offices around the globe. www.linkedin.com/mobile.linkedin.com

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