What's shifting, what's stalling, and what it means for you.
Tension will continue as conflicting forces collide. Organizations are reducing L&D headcount while simultaneously needing to upskill the workforce. AI tools—image generation, voice generation, video generation, learning experience platforms—allow faster scaling and individualization, but still require L&D expertise to design well. The risk? Organizations go full modular and cut professionals anyway. The move for L&D professionals: Stay flexible. Master the tools. Don't wait for permission.
AI in talent acquisition isn't new—it's been embedded in applicant tracking systems for years. What's accelerating is the use of AI chatbots for interviews and screening assessments. The challenge? While AI can be more objective than a human screener, it's trained on human data—which means human biases come along for the ride. As AI expands in recruiting, TA professionals will need to understand where bias bleeds into the process and partner with leaders to identify and mitigate it. The tools aren't going anywhere—but neither is the accountability.
With over 70% of CEOs across multiple studies saying they intend to maintain or reduce headcount, the job market will stay tight for most industries. The bright spots? Healthcare, construction, and real estate—these sectors are expecting growth in 2026. If your field connects to any of these three areas, your job prospects likely look good. For everyone else? The market will remain competitive throughout the year. Plan accordingly.
No. AI is not going anywhere. As it continues to scale globally, we'll see wildly different approaches—country to country, and even state to state. The current administration is all in, with executive orders and federal projects signaling full acceleration. But some states are pumping the brakes, citing concerns about data center impacts on communities, workforce displacement, and questions around AI in schools. AI is here to stay. The real question isn't whether it's going away—it's how we're going to shape its use in society.
The hype is overblown—for now. Most companies are still in early pilot phases. While executives talk about AI-driven efficiencies, few are seeing them realized outside of specific cases in tech. More likely, you'll see AI tools embedded into specific tasks and workflows you already do day-to-day. The real question isn't whether AI takes your job—it's what skills will surface from partnering with AI that you don't have today. But here's the harsh reality: some companies are bullish about reducing headcount whether they've realized efficiencies or not. So keep upskilling, keep surveying the landscape, and stay ready.
Since March 2025, I've been calling it a "corporate boom, people recession." The numbers look great—driven by markets and AI investments concentrated in about a dozen companies. But for most households? Income didn't increase. The country saw 1.1 million layoffs in 2025, an incredibly tight job market, and months of job losses. Most people weren't switching jobs, and those laid off often ended up underemployed. Add rising healthcare costs, childcare costs, and the sandwich generation caring for aging parents AND children—most households are squeezed. If you're feeling it but the news says the economy is thriving, that's why.
2025 hit this space hard. Nonprofits and the public sector saw incredibly high burnout rates, drastic headcount reductions, and—for nonprofits—dwindling donations that limited their ability to serve their missions. The federal government eliminated significant grants that funded nonprofit and state-led programs. In the public sector, federal workers bore the brunt of headcount reductions. When households are squeezed, charity is one of the first things cut. For nonprofits looking to survive: explore AI tools like Copilot or Gemini for administrative efficiency. It's not a fix, but it's a lever.
Everyone's learning as they go—including organizations. But job descriptions are starting to signal the gaps: most roles are becoming hybrid. It won't be enough to be a developer or a marketing specialist; you'll need to know how to use AI tools to make your work more efficient. The biggest trap? Thinking AI can replace a single worker right now. It can't. Most positions still require high levels of human oversight and accountability. So start here: understand your own workflow, identify your bottlenecks, and learn how the tools available can eliminate some of them. That's the move.
The "bench" is broken. Historically high rates of older workers (one in five Americans 65+ are still working) are holding mid-level and senior positions. Organizations are contracting management layers—mid-level managers made up 33% of layoffs, and 41% of employees report their org reduced management levels this year. If you're mid-career looking to move into a director or VP role, those roles aren't opening up—they're disappearing. If you're entering the workforce, you're competing with AI automation AND senior workers taking junior roles to stay employed. Recent college grad unemployment hit 9.7%. 2026 will likely bring more of the same.
As a public servant for over two decades, I understand the complexity of navigating change while still needing to deliver. My focus has always been human-centered—and Practically Beta will continue to look at workforce transformation through that lens. In 2026, I'll be releasing Palmer's Trough of Potential, a framework that helps organizations understand their workforce as they implement AI. PB will continue to offer microlearnings for busy adults and practical tools for AI use cases. PB Junior Builders will launch this year, focused on AI safety and ethics for kids and teens. Thanks for being here.