New research from LinkedIn points to a growing disconnect in the labor market, as job seekers face increased competition while recruiters report finding it increasingly difficult to find qualified candidates, highlighting the growing role of AI in recruiting and job searching.
According to LinkedIn data, finding a job is much more difficult, with nearly 65% of respondents reporting difficulty. The main obstacles cited are increased competition, followed by uncertainty about the candidate’s suitability for the role, and mismatch between the candidate’s skills and job requirements.
Recruiters, on the other hand, are under tremendous pressure to efficiently fill fewer open positions. Approximately 66% of recruiters say it has become harder to find qualified candidates over the past year. Many also report increased expectations to move into roles more quickly (42% said) and to identify so-called “hidden gem” candidates who may go unnoticed through traditional screening (39% said).
AI is emerging as a central tool in both labor markets. According to LinkedIn, 93% of recruiters plan to increase their use of AI by 2026, and 59% say AI is already helping them identify candidates with skills they wouldn’t find otherwise. Two-thirds of recruiters say they plan to expand the use of AI in prequalification interviews, and 70% believe this will lead to more productive conversations with candidates.
Job seekers are also adopting AI at scale. According to LinkedIn, 81% of people are already using or plan to use AI in their job search, and 48% say AI tools can help boost their confidence during interviews.
LinkedIn says it is expanding its AI-powered tools to help both professionals and employers navigate the competitive landscape. The company says its AI-powered job search allows job seekers to describe roles in easy-to-understand terms, rather than relying on specific job titles or keywords. This feature is used by over 1.3 million members every day and supports over 25 million searches every week. Available worldwide in English, Spanish, French, German, and Portuguese.
Additional tools include Job Match, which shows how well a candidate’s profile matches the role requirements. According to LinkedIn, this feature has resulted in a 10% reduction in applications being assigned to roles that are a poor fit among premium subscribers in the US. AI-powered people search also allows members to use natural language to identify relevant contacts across the platform, helping them network for a career change, business start-up, or relocation.
LinkedIn emphasizes profile verification as another factor that influences hiring results. According to the company, verified profiles receive 60% more views, 30% more connection requests, and are more likely to receive a response during a job search. Professionals can also check out LinkedIn’s annual Trending Jobs ranking, which tracks fast-growing roles and outlines in-demand skills and hiring locations.
For employers, LinkedIn is expanding its AI tools designed to accelerate hiring. Small businesses can use Hiring Pro, an AI agent that helps identify, shortlist, and contact candidates. The company says nearly 60% of users found candidates for interviews within the first week. New features such as AI-powered interviews and personalized InMail messages will be rolled out in the coming months.
Recruiters can also use Hiring Assistant, an AI agent aimed at finding qualified candidates more efficiently. According to LinkedIn, companies like AMD, Siemens, Expedia Group, and Wipro are using the tool, and early adopters report saving more than four hours per role, reducing profile reviews, and improving InMail response rates.
