DOOM SCROLL RESCUE: Installment #1
“The Hiring Recession Isn’t Going to End Anytime Soon”
The headline. The context it left out. The move.
The Headline
You scrolled past some version of this in the last two weeks. CNBC ran it. CNN ran it. Fortune ran it. The data underneath: 108,000 layoff announcements in January. Highest since 2009. Job openings at their lowest since September 2020. Hiring intentions at their weakest since the Great Recession.
If you stopped there — and most people do — you’d think the American job market is in free fall.
It’s not.
The Context They Left Out
That 108,000 number is dominated by two companies. Amazon (16,000) and UPS (30,000) account for over 40% of the total. UPS isn’t cutting because of AI or a recession — they’re cutting because they’re losing Amazon shipping volume and pivoting to healthcare logistics. Amazon’s cuts are a continuation of their post-COVID right-sizing. Neither story is “the economy is collapsing.”
AI was cited in only 7% of January layoffs. That’s 7,600 out of 108,000. The rest? Contract losses. Restructuring. Closures. The same reasons companies have always cut headcount. But “Company restructures after losing contract” doesn’t trend on X.
The “low-hire” part is real, but it’s not what you think. Companies aren’t permanently eliminating roles. They’re frozen. Scared of tariffs. Scared of AI hype they bought into. Sitting on cash waiting for clarity on trade policy, interest rates, and whether the AI tools they’re paying for actually work. This isn’t a hiring recession. It’s a hiring hesitation. And hesitations break.
The biggest tell: Glassdoor’s chief economist said it himself — the probability of losing your job hasn’t actually gone up much. What’s gone up is the anxiety about losing your job. People aren’t getting fired more. They’re getting scared more. The doom scroll is doing its job.
When the Stalemate Breaks
Hiring freezes don’t last forever. They last until the cost of not hiring exceeds the cost of hiring. And we’re approaching that threshold.
Companies that cut aggressively for AI in 2024 and 2025 are already feeling the pain. Forrester reports that 55% of employers regret their AI-driven layoffs. Gartner — in a report published February 3, 2026 — predicts half of AI-attributed cuts will be reversed by 2027. Often quietly. Under different job titles. Sometimes offshore. The work didn’t disappear. The humans who did it were just replaced by tools that can’t actually do it yet.
Kathy Ross, Senior Director Analyst at Gartner, said it plainly: “Most recent workforce reductions were influenced by broader economic conditions rather than automation alone. As organizations encounter the limits of AI and rising customer expectations, they will need to reinvest in human talent.”
Read that again. Gartner — one of the most influential research firms in the world — is telling companies they’re going to need to hire the people back.
Klarna replaced 700 customer service employees with AI. Quality cratered. Customers revolted. They rehired humans. The Commonwealth Bank of Australia did the same thing — laid off staff for a voice bot, then admitted the roles weren’t actually redundant. This pattern is going to repeat across industries through 2026 and into 2027.
Let’s be honest about the timeline: 2026 is probably still the stalemate year. The hiring dam doesn’t break next quarter. But the pressure behind it is building. Demand hasn’t disappeared. Projects are stalling. Backlogs are growing. Companies that cut too deep are scrambling to patch the gaps with contractors and offshore teams that cost more than keeping the original employees would have.
The consensus from Gartner, Forrester, and Deloitte all points to the same window: late 2026 through 2027 is when companies start hiring again in earnest — especially for roles that require judgment, empathy, and complex problem-solving that AI simply can’t do yet. The stalemate will break because stalemates always do.
The Move While You Wait
The worst response to a hiring hesitation is to hesitate yourself. The people who come out of a stalemate in the strongest position are the ones who spent the stalemate building.
If you’re employed and anxious: Stop doom scrolling and start documenting. Write down every project you’ve shipped, every number you’ve moved, every result you’ve delivered. If layoffs come to your company, your leverage is a clear record of value. If they don’t, that same record is your next promotion case.
If you’re job hunting in a frozen market: Stop sending 50 applications a week into a void. Tight markets reward precision, not volume. Pick 10 companies. Research them. Network into them. One warm intro is worth more than 100 cold applications right now.
If you’re watching from the sidelines: This is the window to build a skill that compounds. Learn to work with AI instead of fearing it — only 16% of workers score high on AI readiness. That’s not a threat. That’s a gap you can fill. The person who knows how to use the tools beats the person the tools replaced and the person who never learned.
The Rescue
The headline said “hiring recession.” The data says “hiring hesitation.” One sounds permanent. The other sounds temporary. They are very different situations that require very different responses.
Recessions make you hunker down. Hesitations make you prepare.
Prepare.
— Scot Free
Related: AI Disruption Report: Which Jobs Are Next → | 265 Applications. 3 Interviews. Zero Offers. → | You’re Not Stuck—You Just Don’t Have a Plan →
