Labor market trends heading into 2026 – Wharton professor's breakdown

Knowledge at Wharton

Episode Description

Matthew Bidwell says the track of the labor market next year could go either way. There isn't currently sufficient information to make a strong guess about outcomes next year.

ABOUT THE EPISODE Matthew Bidwell, Professor of Management and Xingmei Zhang and Yongge Dai Professor at the Wharton School, takes a look back at the past year in the job market and what lies ahead in 2026 as part of our annual faculty predictions series. He explores trends in the labor market, including unemployment, job change rates, and recent waves of layoffs. Bidwell also discusses growing uncertainty around AI’s impact on work, how automation may reshape different sectors, and what all of this means for new college graduates entering the job market.

ABOUT THE PODCAST This Week in Business features interviews with Wharton faculty about the latest news, fascinating trends, and issues impacting both consumers and the business world. Episodes are recorded at the Wharton School and published twice per week.

----- The Wharton School of the University of Pennsylvania is committed to sharing its intellectual capital through Knowledge at Wharton, the school’s online business analysis journal.

Launched in 1999, Knowledge at Wharton offers free access to:

- Articles, podcasts, and videos highlighting Wharton faculty research and analysis of current business trends - Interviews with book authors from Wharton School Press - In-depth series of curated content like Wharton Executive Education’s Nano Tools for Leaders - A searchable database of more than 10,000 articles covering all aspects of business - A weekly newsletter that delivers Knowledge at Wharton insights directly to your inbox

Visit the Knowledge at Wharton homepage: https://whr.tn/3qUpSBE Subscribe to the Knowledge at Wharton YouTube channel: https://whr.tn/3DEAgAU

Brief Summary

The episode analyzes the frozen labor market and low job change rates amid stable unemployment levels.

Key points

  • Frozen Labor Market Discussion. Exploring the current state of the labor market and job changes.
  • Economic Uncertainty. The economy hasn't slid as much as expected, but risks remain.

Ask about Knowledge at Wharton

Related episodes