The job market limbo: what’s happening and what’s next

“It’s like the job market hit pause, and no one told me.” If you’ve been feeling like this lately, you’re not alone. Over the winter break, I spent time reading job forums and studies to understand what’s going on in the labor market. And I gotta say — there’s a lot of anxiety out there right now.

 

In my (still relatively short) career, I’ve never seen white-collar professionals feeling this uncertain about the future — especially in tech.

 

From tech layoffs to shifting roles, the uncertainty is everywhere. Aki Ito recently called this “a deep white-collar recession” in her latest article, and at NeurIPS 2024 (one of the world’s biggest machine learning conferences), KyungHyun Cho described the “anxiety and frustration” he saw among attendees.

 

It’s not just in headlines or conferences. Scroll through Reddit communities like r/cscareerquestions, r/webdev, or r/codingbootcamps, and you’ll see the same story: worry, frustration, and confusion about what the future holds.

So why are companies holding back on hiring?

From what I’ve seen working with Fortune 500 companies on workforce applications, the job market feels frozen because companies aren’t sure what the “new work era” looks like yet.

 

Here’s the challenge: businesses understand that tasks will increasingly be automated or augmented by technology. They examine great studies like Eloundou et al.’s, which model productivity gains across professions. They identify roles that may be impacted, such as middle manager, and those likely to be redefined, like product manager. But knowing this in theory is very different from putting it into practice.

 

Right now, companies are stuck. They haven’t figured out:

- How to redesign jobs to match this new era.
- What skills they need most.
- How to update job titles, levels, and skill requirements to reflect this change.

As a result, many companies are afraid to hire externally and are prioritizing finding talent internally. That’s why internal talent marketplaces are gaining popularity — although, if we’re being honest, they don’t quite work as well as they should. They rely on outdated and self-reported HR data, like resumes, to find job matches for employees instead of measurable skills and potential, leaving companies without the information to make them effective.

What’s coming next

I think we’ll see a big shift over the next 12–24 months as companies start to figure out their skills strategies. This means they’ll:

  • - Identify their skills gaps and strengths.
  • - Define which tasks require a human touch.
  • - Create and continually refine new roles.
  • - Understand which roles they can fill by moving people internally.
  • - Train employees to step into new positions quickly.
  • - Determine which roles they need to hire for externally.

 

In short, the new work era will see significant workforce movement and become highly data-driven. It’s also likely to be more meritocratic — but that’s a discussion for another time!

Why I’m optimistic

If you know me, you know I’m an optimist at heart… No matter how challenging this transition might feel, I genuinely believe the new work era is bright.

 

We’re moving toward jobs that are more fulfilling — roles that let us focus on higher-order thinking while leaving repetitive and tedious tasks to robots and computers. That’s a good thing. (I like to think of it as a “Circle analogy,” where technology takes care of the middle, freeing us to focus on what truly matters at the frontier of innovation.)

 

 

That said, we’re in a limbo period right now, and it’s tough. This is a time when resilience and adaptability matter more than ever.

So, what can you do?

If you understand where companies are heading, you can align yourself with that trajectory:

 

  • - Be ready for change: expect workforce movement and prepare to pivot as new opportunities emerge. For example, if you’re a data scientist, consider adjacent roles in areas like responsible AI or data governance — jobs likely to grow as Big Tech responds to increasing AI regulations.
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  • - Upskill constantly: keep learning to stay relevant, especially in areas where AI intersects with your expertise (I call this “AI + X”).
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  • - Stay tuned to trends: follow industry thought leaders on LinkedIn or X and make it a habit to read regularly about how AI is reshaping your field.
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  • - If you’re employed: look for tasks you can streamline or automate and embrace how your role is evolving. By doing this, you’ll become the expert in how your job is changing and gain valuable insights into what the new version of your role entails.
  • - If you’re job searching: use this time to sharpen your skills, stay informed, and follow practical advice like Aki Ito’s tips for navigating today’s job market.
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When I moved to the US nine years ago, one thing struck me immediately: the incredible level of optimism here. Optimism is powerful — it’s contagious, creates momentum, and eventually leads to real results.

 

If you’re feeling drained in your job search or anxious about layoffs, know this: things will get better. Keep your head up, lean on others for support, and remind yourself that this is just a phase. The future holds so much promise for all of us!