AI Job Growth Surges Amidst Broader Hiring Slowdown in US Labor Market

The US labor market is witnessing a significant shift as job postings mentioning AI surge despite a broader slowdown in hiring. According to recent data, AI-related job postings have increased by 134% compared to pre-pandemic levels, while overall job postings have only risen by 6%. This trend highlights a growing demand for AI skills even as the broader job market remains weak.

Background

The Indeed Job Postings Index, which tracks job listings, stood at 6% above its February 2020 baseline as of December 31, 2025. However, the number of postings mentioning AI was significantly higher, reflecting a shift in employer priorities. This divergence between AI-related jobs and overall hiring trends suggests that employers are focusing their limited hiring efforts on roles and skills tied to AI.

The Indeed AI Tracker, which measures the share of job postings mentioning AI, reached a high of 4.2% in December 2025. This growth is driven by the increasing adoption of AI and generative AI tools across various sectors, including tech, marketing, and human resources. Despite this growth, the overall hiring environment remains subdued, with job postings flat or declining in many occupations.

Impact on Knowledge Work Occupations

The rise in AI-related jobs is particularly notable in knowledge work occupations. For instance, AI mentions in marketing job postings grew from 8.4% at the start of 2025 to 14.9% by the end of December. Similarly, human resources saw a doubling of AI mentions from 4.4% to 8.8% over the same period. This trend indicates that AI skills are becoming increasingly important across a wide range of roles.

However, the adoption of AI is not uniform across all sectors. While tech roles that mention AI have seen a significant increase, general tech hiring trends have declined. By the end of 2025, the number of tech postings mentioning AI was about 45% higher than in February 2020, while total tech postings were 34% below pre-pandemic levels. This divergence highlights the growing importance of AI skills in the tech sector.

The Indeed AI Tracker also reveals that AI mentions are growing across many knowledge work occupations, but they still account for a small share of all postings within their sectors. This suggests that while AI is becoming more integrated into these roles, there is still significant room for growth.

The Road Ahead for AI in the Labor Market

As AI becomes a more routine part of work, expanding access and engagement with AI tools will be crucial. According to a recent Hiring Lab survey, only about 43% of US workers reported regularly using AI at work last year, and roughly 40% said they were actively disengaged with AI. This highlights the need for employers to focus on training and upskilling their workforce to meet the growing demand for AI skills.

The shift towards AI-related jobs also raises questions about the future of the labor market. While AI jobs are growing, the overall hiring environment remains weak. This suggests that workers who develop and highlight relevant AI skills may have an advantage in the job market, particularly in occupations with otherwise muted hiring activity.

In conclusion, the growth in AI-related jobs amidst a broader hiring slowdown signals a significant shift in the US labor market. As employers focus on AI skills, workers and employers alike will need to adapt to the changing landscape to remain competitive.