Hiring Freeze Could Last 2 years, HR Managers Warn
- Bethany Watson
- 16 hours ago
- 3 min read
It’s grim news for job seekers, as a new report has highlighted that hiring freezes implemented by human resource managers could be in place for up to two years.
Breaking into the workforce in 2025-26 is proving tougher than it has been in previous years. Careerminds’ survey of 600 HR leaders found that 66.7% of companies currently have hiring freezes in place, creating a more competitive market for job seekers.
The survey, which delves into the motivations and impact of these freezes, reveals the following findings:
Nearly half (48.3%) of companies expect freezes to last at least 12 months, with 1 in 6 anticipating they’ll continue for two years
30.6% of employers cite AI adoption as a reason for pausing recruitment
59.6% of companies point to budget constraints as the main motivator for hiring freezes
Hiring freezes are hitting entry-level roles the hardest
The Careerminds survey of 600 HR leaders found that 66.7% of companies have introduced hiring freezes for 2025 and into 2026. Of these, 44.6% are partial freezes affecting specific departments, while 22.1% are company-wide.
Those who had implemented hiring freezes were also asked to predict how long the halt on recruitment at their company would last:
32.4% shared that they foresaw their hiring freeze lasting up to six months
48.3% of companies’ hiring freezes will last up to 12 months
16.2% of companies’ share that their hiring freeze will last between one and two years
2.9% of HR managers share that they won’t resume normal hiring practices until 2028
Entry-level job seekers could see a growing lack of roles to apply for, as HR managers who implemented partial hiring freezes admitted that entry-level positions were the ones most impacted.
Automation of the workforce named as key reason behind hiring freezes
One factor behind hiring freezes is the growing adoption of AI. While tools like ChatGPT are reshaping industries and reducing the need for junior staff in some areas, OpenAI CEO Sam Altman remains optimistic about the opportunities ahead: “This is probably the most exciting time to be starting out one’s career, maybe ever.” But for many job seekers, the reality on job boards is less than encouraging.
When asked to list the main motivators for introducing hiring freezes, a reduction of costs was hailed as the most common, along with economic uncertainty. 30.6% of HR managers also cited that Artificial Intelligence has replaced the need for some roles.
President of Careerminds, Raymond Lee, comments on the findings: “We’re seeing a clear shift in how HR leaders are approaching talent needs. Instead of defaulting to external hires, many are upskilling and reskilling their existing workforce. This not only helps to control costs in a tighter budget environment but also strengthens employee loyalty.
“The rapid growth and adoption of Artificial Intelligence has introduced an area where skills are becoming obsolete; however, we’re seeing a clear shift in how HR leaders are approaching talent needs. They’re prioritizing skills such as risk management and leadership to fill essential gaps that aren’t filled by artificial intelligence.”
Methodology: This report is based on a survey conducted by Careerminds in August 2025, gathering insights from 600 HR professionals across the United States. All respondents were working in full-time HR roles at the time of the survey.
About Careerminds: Careerminds is a leading provider of outplacement, career coaching, and workforce transformation solutions. By combining personalized coaching with innovative technology, Careerminds helps organizations support employees through every stage of their careers. Its services include career frameworks, redeployment strategies, and customized workforce development programs designed to meet the challenges of a rapidly changing job market.
