diff --git a/app/Http/Controllers/Api/WorkerJobController.php b/app/Http/Controllers/Api/WorkerJobController.php
index 4db8e37..85ef88f 100644
--- a/app/Http/Controllers/Api/WorkerJobController.php
+++ b/app/Http/Controllers/Api/WorkerJobController.php
@@ -21,7 +21,7 @@ public function listJobs(Request $request)
         /** @var Worker $worker */
         $worker = $request->attributes->get('worker');
 
-        $query = JobPost::where('status', 'active')
+        $query = JobPost::whereIn('status', ['active', 'closed'])
             ->with(['employer.employerProfile', 'skills']);
 
         if ($worker) {
@@ -42,9 +42,85 @@ public function listJobs(Request $request)
             }
         }
 
-        $jobs = $query->latest()
-            ->get()
-            ->map(function ($job) {
+        $workerApplications = [];
+        if ($worker) {
+            $workerApplications = JobApplication::where('worker_id', $worker->id)
+                ->pluck('status', 'job_id')
+                ->toArray();
+        }
+
+        // Apply filters
+        // Filter by job_type / jobType
+        if ($request->has('job_type') && $request->input('job_type') !== '') {
+            $query->where('job_type', $request->input('job_type'));
+        }
+        if ($request->has('jobType') && $request->input('jobType') !== '') {
+            $query->where('job_type', $request->input('jobType'));
+        }
+
+        // Filter by skills
+        if ($request->has('skills') && $request->input('skills') !== '') {
+            $skills = $request->input('skills');
+            if (is_string($skills)) {
+                $skills = array_filter(array_map('trim', explode(',', $skills)));
+            }
+            if (!empty($skills)) {
+                $query->whereHas('skills', function ($q) use ($skills) {
+                    $q->where(function($q2) use ($skills) {
+                        $q2->whereIn('skills.id', $skills)
+                           ->orWhereIn('skills.name', $skills);
+                    });
+                });
+            }
+        }
+
+        // Filter by salary
+        if ($request->has('salary_min') && $request->input('salary_min') !== '') {
+            $query->where('salary', '>=', (float) $request->input('salary_min'));
+        }
+        if ($request->has('salary_max') && $request->input('salary_max') !== '') {
+            $query->where('salary', '<=', (float) $request->input('salary_max'));
+        }
+        if ($request->has('salary') && $request->input('salary') !== '') {
+            $query->where('salary', '>=', (float) $request->input('salary'));
+        }
+
+        if ($request->has('search') && $request->input('search') !== '') {
+            $search = $request->input('search');
+            $query->where(function($q) use ($search) {
+                $q->where('title', 'like', "%{$search}%")
+                  ->orWhere('description', 'like', "%{$search}%")
+                  ->orWhere('location', 'like', "%{$search}%");
+            });
+        }
+
+        // Apply Sorting
+        if ($request->has('sortBy') && $request->input('sortBy') !== '') {
+            $sortBy = strtoupper($request->input('sortBy'));
+            if ($sortBy === 'LATEST FIRST') {
+                $query->latest();
+            } elseif ($sortBy === 'OLDEST FIRST') {
+                $query->oldest();
+            } elseif ($sortBy === 'PRICE: LOW TO HIGH') {
+                $query->orderBy('salary', 'asc');
+            } elseif ($sortBy === 'PRICE: HIGH TO LOW') {
+                $query->orderBy('salary', 'desc');
+            } else {
+                $query->latest();
+            }
+        } else {
+            $query->latest();
+        }
+
+        $jobs = $query->get()
+            ->map(function ($job) use ($worker, $workerApplications) {
+                $status = 'new';
+                if ($worker && isset($workerApplications[$job->id])) {
+                    $status = $workerApplications[$job->id];
+                } elseif ($job->status === 'closed') {
+                    $status = 'closed';
+                }
+
                 return [
                     'id' => $job->id,
                     'title' => $job->title,
@@ -60,6 +136,7 @@ public function listJobs(Request $request)
                     'company_name' => $job->employer->employerProfile->company_name ?? 'Private Sponsor',
                     'posted_by' => $job->employer->name ?? 'Private Sponsor',
                     'posted_at' => $job->created_at->toIso8601String(),
+                    'status' => $status,
                 ];
             });
 
@@ -77,7 +154,7 @@ public function listJobs(Request $request)
      */
     public function jobDetails($id)
     {
-        $job = JobPost::where('status', 'active')
+        $job = JobPost::whereIn('status', ['active', 'closed'])
             ->with(['employer.employerProfile', 'skills'])
             ->find($id);
 
@@ -88,6 +165,21 @@ public function jobDetails($id)
             ], 404);
         }
 
+        $worker = request()->attributes->get('worker');
+        $status = 'new';
+        if ($worker) {
+            $application = JobApplication::where('worker_id', $worker->id)
+                ->where('job_id', $job->id)
+                ->first();
+            if ($application) {
+                $status = $application->status;
+            } elseif ($job->status === 'closed') {
+                $status = 'closed';
+            }
+        } elseif ($job->status === 'closed') {
+            $status = 'closed';
+        }
+
         return response()->json([
             'success' => true,
             'data' => [
@@ -106,6 +198,7 @@ public function jobDetails($id)
                     'company_name' => $job->employer->employerProfile->company_name ?? 'Private Sponsor',
                     'posted_by' => $job->employer->name ?? 'Private Sponsor',
                     'posted_at' => $job->created_at->toIso8601String(),
+                    'status' => $status,
                 ]
             ]
         ]);
@@ -187,6 +280,7 @@ public function appliedJobs(Request $request)
                 return [
                     'application_id' => $app->id,
                     'status' => $app->status,
+                    'employer_status' => $app->employer_status,
                     'applied_at' => $app->created_at->toIso8601String(),
                     'job' => $job ? [
                         'id' => $job->id,
@@ -660,7 +754,7 @@ public function employerUpdateApplicationStatus(Request $request, $id)
         }
 
         $validator = Validator::make($request->all(), [
-            'status' => 'required|string|in:applied,shortlisted,contacted,interview scheduled,interview_scheduled,selected,rejected,hired,hire_requested',
+            'status' => 'required|string|in:applied,review,reviewing,shortlisted,contacted,interview scheduled,interview_scheduled,selected,rejected,hired,hire_requested',
             'notes' => 'nullable|string',
         ]);
 
@@ -687,6 +781,8 @@ public function employerUpdateApplicationStatus(Request $request, $id)
         $dbStatus = strtolower($request->status);
         if ($dbStatus === 'hired') {
             $dbStatus = 'hire_requested';
+        } elseif ($dbStatus === 'review' || $dbStatus === 'reviewing') {
+            $dbStatus = 'applied';
         }
 
         // Contact Limit check: if moving to 'shortlisted', 'contacted', 'interview_scheduled', 'selected', 'hired', 'hire_requested'
@@ -715,8 +811,16 @@ public function employerUpdateApplicationStatus(Request $request, $id)
             'notes' => $notes,
         ];
 
+        $empStatus = strtolower($request->status);
+        if ($empStatus === 'applied' || $empStatus === 'reviewing' || $empStatus === 'review') {
+            $empStatus = 'review';
+        } elseif ($empStatus === 'hire_requested') {
+            $empStatus = 'hired';
+        }
+
         $updateData = [
             'status' => $dbStatus,
+            'employer_status' => $empStatus,
             'status_history' => $history,
         ];
 
@@ -785,6 +889,7 @@ public function appliedJobDetail(Request $request, $id)
                 'application' => [
                     'id' => $application->id,
                     'status' => $application->status,
+                    'employer_status' => $application->employer_status,
                     'status_history' => $application->status_history ?: [],
                     'applied_at' => $application->created_at->toIso8601String(),
                     'job' => $job ? [
diff --git a/app/Http/Controllers/Employer/CandidateController.php b/app/Http/Controllers/Employer/CandidateController.php
index 37a0ede..f53d200 100644
--- a/app/Http/Controllers/Employer/CandidateController.php
+++ b/app/Http/Controllers/Employer/CandidateController.php
@@ -54,12 +54,12 @@ public function index(Request $request)
             if (!$w) return null;
 
             // Map DB status to UI friendly status
-            $status = 'Reviewing';
+            $status = 'Review';
             $dbStatusLower = strtolower($app->status ?? '');
             if ($dbStatusLower === 'hired') $status = 'Hired';
             elseif ($dbStatusLower === 'rejected') $status = 'Rejected';
-            elseif ($dbStatusLower === 'shortlisted' || $dbStatusLower === 'offer_sent' || $dbStatusLower === 'offer sent') $status = 'Offer Sent';
-            elseif ($dbStatusLower === 'applied') $status = 'Reviewing';
+            elseif ($dbStatusLower === 'shortlisted' || $dbStatusLower === 'offer_sent' || $dbStatusLower === 'offer sent') $status = 'Shortlisted';
+            elseif ($dbStatusLower === 'applied' || $dbStatusLower === 'review' || $dbStatusLower === 'reviewing') $status = 'Review';
             else $status = ucfirst($app->status);
 
             return [
@@ -316,7 +316,7 @@ private function checkJobAccess($user)
     public function updateStatus(Request $request, $id)
     {
         $request->validate([
-            'status' => 'required|string|in:Applied,Reviewing,Shortlisted,Contacted,Interview Scheduled,Selected,Rejected,Hired,Offer Sent,applied,shortlisted,contacted,interview scheduled,interview_scheduled,selected,rejected,hired,offer sent,offer_sent,hire_requested,hire_requested',
+            'status' => 'required|string|in:Applied,Review,review,Reviewing,reviewing,Shortlisted,Contacted,Interview Scheduled,Selected,Rejected,Hired,Offer Sent,applied,shortlisted,contacted,interview scheduled,interview_scheduled,selected,rejected,hired,offer sent,offer_sent,hire_requested',
             'notes' => 'nullable|string',
         ]);
 
@@ -381,7 +381,7 @@ public function updateStatus(Request $request, $id)
             $dbStatus = 'interview_scheduled';
         } elseif ($statusLower === 'selected') {
             $dbStatus = 'selected';
-        } elseif ($statusLower === 'reviewing' || $statusLower === 'applied') {
+        } elseif ($statusLower === 'reviewing' || $statusLower === 'applied' || $statusLower === 'review') {
             $dbStatus = 'applied';
         }
 
@@ -408,8 +408,16 @@ public function updateStatus(Request $request, $id)
             'notes' => $request->input('notes'),
         ];
 
+        $empStatus = strtolower($request->status);
+        if ($empStatus === 'applied' || $empStatus === 'reviewing' || $empStatus === 'review') {
+            $empStatus = 'review';
+        } elseif ($empStatus === 'hire_requested') {
+            $empStatus = 'hired';
+        }
+
         $updateData = [
             'status' => $dbStatus,
+            'employer_status' => $empStatus,
             'status_history' => $history,
         ];
 
diff --git a/app/Http/Controllers/Employer/MessageController.php b/app/Http/Controllers/Employer/MessageController.php
index 2c37799..c788f38 100644
--- a/app/Http/Controllers/Employer/MessageController.php
+++ b/app/Http/Controllers/Employer/MessageController.php
@@ -197,10 +197,59 @@ public function show($id)
             ];
         })->toArray();
 
+        $application = \App\Models\JobApplication::where('worker_id', $activeConv->worker_id)
+            ->whereHas('jobPost', function($q) use ($user) {
+                $q->where('employer_id', $user->id);
+            })
+            ->latest('id')
+            ->first();
+
+        if (!$application) {
+            $jobPost = \App\Models\JobPost::where('employer_id', $user->id)->latest('id')->first();
+            if (!$jobPost) {
+                $jobPost = \App\Models\JobPost::create([
+                    'employer_id' => $user->id,
+                    'title' => 'General Helper',
+                    'location' => 'Dubai',
+                    'salary' => 2000,
+                    'job_type' => 'full-time',
+                    'status' => 'open',
+                    'start_date' => now()->format('Y-m-d'),
+                    'description' => 'General domestic helper position.',
+                    'requirements' => 'General helper requirements.',
+                ]);
+            }
+            $application = \App\Models\JobApplication::create([
+                'job_id' => $jobPost->id,
+                'worker_id' => $activeConv->worker_id,
+                'status' => 'applied',
+                'employer_status' => 'review',
+                'status_history' => [
+                    [
+                        'status' => 'applied',
+                        'timestamp' => now()->toIso8601String(),
+                        'notes' => 'Application created via chat conversation.',
+                    ]
+                ],
+            ]);
+        }
+
+        $applicationData = null;
+        if ($application) {
+            $applicationData = [
+                'application_id' => $application->id,
+                'status' => $application->status,
+                'notes' => $application->notes,
+                'status_history' => $application->status_history ?: [],
+                'name' => $activeConv->worker->name ?? 'Candidate',
+            ];
+        }
+
         return Inertia::render('Employer/Messages/Show', [
             'conversations' => $conversations,
             'conversation' => $conversationData,
             'initialMessages' => $initialMessages,
+            'application' => $applicationData,
         ]);
     }
 
diff --git a/app/Models/JobApplication.php b/app/Models/JobApplication.php
index dd67e81..7bff8f7 100644
--- a/app/Models/JobApplication.php
+++ b/app/Models/JobApplication.php
@@ -13,6 +13,7 @@ class JobApplication extends Model
         'job_id',
         'worker_id',
         'status',
+        'employer_status',
         'notes',
         'status_history',
         'joining_confirmed_at',
diff --git a/database/migrations/2026_07_06_144202_add_employer_status_to_job_applications_table.php b/database/migrations/2026_07_06_144202_add_employer_status_to_job_applications_table.php
new file mode 100644
index 0000000..0fb158a
--- /dev/null
+++ b/database/migrations/2026_07_06_144202_add_employer_status_to_job_applications_table.php
@@ -0,0 +1,28 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    /**
+     * Run the migrations.
+     */
+    public function up(): void
+    {
+        Schema::table('job_applications', function (Blueprint $table) {
+            $table->string('employer_status')->nullable()->after('status');
+        });
+    }
+
+    /**
+     * Reverse the migrations.
+     */
+    public function down(): void
+    {
+        Schema::table('job_applications', function (Blueprint $table) {
+            $table->dropColumn('employer_status');
+        });
+    }
+};
diff --git a/public/swagger.json b/public/swagger.json
index bb228af..7279854 100644
--- a/public/swagger.json
+++ b/public/swagger.json
@@ -4138,6 +4138,56 @@
                 ],
                 "summary": "List Available Jobs",
                 "description": "Returns a list of all active job postings available for workers to discover and apply.",
+                "parameters": [
+                    {
+                        "name": "job_type",
+                        "in": "query",
+                        "schema": {
+                            "type": "string"
+                        },
+                        "description": "Direct filter by exact job type (e.g., 'Full Time', 'Part Time', 'Contract')."
+                    },
+                    {
+                        "name": "skills",
+                        "in": "query",
+                        "schema": {
+                            "type": "string"
+                        },
+                        "description": "Comma-separated list of skill names or IDs to filter by (e.g. 'Cooking,Cleaning')."
+                    },
+                    {
+                        "name": "salary_min",
+                        "in": "query",
+                        "schema": {
+                            "type": "number"
+                        },
+                        "description": "Minimum salary filter."
+                    },
+                    {
+                        "name": "salary_max",
+                        "in": "query",
+                        "schema": {
+                            "type": "number"
+                        },
+                        "description": "Maximum salary filter."
+                    },
+                    {
+                        "name": "search",
+                        "in": "query",
+                        "schema": {
+                            "type": "string"
+                        },
+                        "description": "General search query for title, description, or location."
+                    },
+                    {
+                        "name": "sortBy",
+                        "in": "query",
+                        "schema": {
+                            "type": "string"
+                        },
+                        "description": "Sorting order (e.g. 'LATEST FIRST', 'OLDEST FIRST', 'PRICE: LOW TO HIGH', 'PRICE: HIGH TO LOW')."
+                    }
+                ],
                 "security": [
                     {
                         "bearerAuth": []
diff --git a/resources/js/Pages/Employer/Jobs/Applicants.jsx b/resources/js/Pages/Employer/Jobs/Applicants.jsx
index f2e69d0..0cfe4bc 100644
--- a/resources/js/Pages/Employer/Jobs/Applicants.jsx
+++ b/resources/js/Pages/Employer/Jobs/Applicants.jsx
@@ -37,7 +37,18 @@ export default function Applicants({ job, applicants: initialApplicants, isShort
 
     const openStatusModal = (app, statusPreset = '') => {
         setSelectedApp(app);
-        setNewStatus(statusPreset || app.status || 'Applied');
+        let resolvedStatus = statusPreset || app.status || 'Applied';
+        const lowerStatus = resolvedStatus.toLowerCase();
+        if (lowerStatus === 'hire_requested' || lowerStatus === 'hired') {
+            resolvedStatus = 'Hired';
+        } else if (lowerStatus === 'rejected') {
+            resolvedStatus = 'Rejected';
+        } else if (lowerStatus === 'shortlisted') {
+            resolvedStatus = 'Shortlisted';
+        } else {
+            resolvedStatus = 'Applied';
+        }
+        setNewStatus(resolvedStatus);
         setNotes(app.notes || '');
         setShowModal(true);
     };
@@ -197,7 +208,8 @@ export default function Applicants({ job, applicants: initialApplicants, isShort
                                             applicant.status?.toLowerCase() === 'rejected' ? 'bg-rose-100 text-rose-700' :
                                             'bg-blue-50 text-[#185FA5]'
                                         }`} onClick={() => openStatusModal(applicant)}>
-                                            {applicant.status?.toLowerCase() === 'hire_requested' ? 'Pending Confirmation' : applicant.status}
+                                            {applicant.status?.toLowerCase() === 'hire_requested' ? 'Pending Confirmation' : 
+                                             applicant.status?.toLowerCase() === 'applied' ? 'Review' : applicant.status}
                                         </span>
                                         <div className="flex items-center space-x-1 text-[10px] font-bold text-slate-400">
                                             <Link href={`/employer/workers/${applicant.id}`} className="hover:text-[#185FA5] flex items-center underline underline-offset-2">
@@ -275,13 +287,10 @@ export default function Applicants({ job, applicants: initialApplicants, isShort
                                     onChange={(e) => setNewStatus(e.target.value)}
                                     className="w-full px-4 py-3 bg-slate-50 border border-slate-100 rounded-xl text-xs font-bold text-slate-900 focus:ring-4 focus:ring-blue-500/10 focus:border-[#185FA5] outline-none transition-all"
                                 >
-                                    <option value="Applied">Applied (Reviewing)</option>
-                                    <option value="Shortlisted">Shortlisted (Save Candidate)</option>
-                                    <option value="Contacted">Contacted</option>
-                                    <option value="Interview Scheduled">Interview Scheduled</option>
-                                    <option value="Selected">Selected</option>
+                                    <option value="Applied">Review</option>
+                                    <option value="Shortlisted">Shortlisted</option>
                                     <option value="Rejected">Rejected</option>
-                                    <option value="Hired">Hired (Request Confirmation)</option>
+                                    <option value="Hired">Hired</option>
                                 </select>
                             </div>
 
diff --git a/resources/js/Pages/Employer/Messages/Show.jsx b/resources/js/Pages/Employer/Messages/Show.jsx
index 934d1cd..060b99e 100644
--- a/resources/js/Pages/Employer/Messages/Show.jsx
+++ b/resources/js/Pages/Employer/Messages/Show.jsx
@@ -32,13 +32,16 @@ import {
 } from 'lucide-react';
 import { toast } from 'sonner';
 
-export default function Show({ conversation, initialMessages, conversations = [] }) {
+export default function Show({ conversation, initialMessages, conversations = [], application = null }) {
     const { t } = useTranslation();
     const [messages, setMessages] = useState(initialMessages || []);
     const [input, setInput] = useState('');
     const [isTyping, setIsTyping] = useState(false);
     const [searchTerm, setSearchTerm] = useState('');
-    const [showHireConfirmModal, setShowHireConfirmModal] = useState(false);
+    const [selectedApp, setSelectedApp] = useState(null);
+    const [newStatus, setNewStatus] = useState('');
+    const [notes, setNotes] = useState('');
+    const [showModal, setShowModal] = useState(false);
     const [showAttachmentModal, setShowAttachmentModal] = useState(false);
     const [uploadedFiles, setUploadedFiles] = useState([]);
     const [isRecording, setIsRecording] = useState(false);
@@ -189,14 +192,39 @@ export default function Show({ conversation, initialMessages, conversations = []
         }
     };
 
-    const handleMarkHired = () => {
-        router.post(`/employer/workers/${conversation.worker_id}/mark-hired`, {}, {
+    const openStatusModal = (app, statusPreset = '') => {
+        setSelectedApp(app);
+        let resolvedStatus = statusPreset || app.status || 'Applied';
+        const lowerStatus = resolvedStatus.toLowerCase();
+        if (lowerStatus === 'hire_requested' || lowerStatus === 'hired') {
+            resolvedStatus = 'Hired';
+        } else if (lowerStatus === 'rejected') {
+            resolvedStatus = 'Rejected';
+        } else if (lowerStatus === 'shortlisted') {
+            resolvedStatus = 'Shortlisted';
+        } else {
+            resolvedStatus = 'Applied';
+        }
+        setNewStatus(resolvedStatus);
+        setNotes(app.notes || '');
+        setShowModal(true);
+    };
+
+    const handleSaveStatus = () => {
+        if (!selectedApp) return;
+
+        router.post(`/employer/candidates/${selectedApp.application_id}/status`, {
+            status: newStatus,
+            notes: notes
+        }, {
             preserveScroll: true,
             onSuccess: () => {
-                toast.success(t('hire_request_sent', 'Hiring request sent successfully!'), {
-                    description: t('hire_request_sent_desc', 'Awaiting worker confirmation of the hiring offer.')
-                });
-                router.reload();
+                toast.success(t('status_updated_success', 'Applicant status updated successfully.'));
+                setShowModal(false);
+                setSelectedApp(null);
+            },
+            onError: (errors) => {
+                toast.error(t('status_updated_error', 'Failed to update status: ' + (errors.error || errors.status || 'Error occurred')));
             }
         });
     };
@@ -315,25 +343,15 @@ export default function Show({ conversation, initialMessages, conversations = []
                         </div>
 
                         <div className="flex items-center space-x-2">
-                            {conversation.worker_status === 'pending_confirmation' ? (
-                                <span className="px-3.5 py-2 bg-amber-50 text-amber-700 rounded-xl text-xs font-black uppercase tracking-wider border border-amber-200 flex items-center space-x-1.5">
-                                    <Clock className="w-4 h-4 text-amber-600 animate-pulse" />
-                                    <span>{t('pending_confirmation', 'Pending Confirmation')}</span>
-                                </span>
-                            ) : conversation.worker_status !== 'hired' && conversation.worker_status !== 'hidden' ? (
+                            {application ? (
                                 <button
                                     type="button"
-                                    onClick={() => setShowHireConfirmModal(true)}
+                                    onClick={() => openStatusModal(application)}
                                     className="px-3.5 py-2 bg-emerald-600 text-white hover:bg-emerald-700 rounded-xl transition-all shadow-md flex items-center space-x-1.5 text-xs font-black uppercase tracking-wider border border-emerald-700 cursor-pointer"
                                 >
                                     <CheckCircle2 className="w-4 h-4 text-white" />
-                                    <span>{t('mark_hired_action', 'Mark Hired')}</span>
+                                    <span>{t('update_status', 'Update Status')}</span>
                                 </button>
-                            ) : conversation.worker_status === 'hired' ? (
-                                <span className="px-3.5 py-2 bg-slate-100 text-slate-500 rounded-xl text-xs font-black uppercase tracking-wider border border-slate-200 flex items-center space-x-1.5">
-                                    <CheckCircle2 className="w-4 h-4 text-emerald-600" />
-                                    <span>{t('hired', 'Hired')}</span>
-                                </span>
                             ) : null}
                         </div>
                     </div>
@@ -537,38 +555,90 @@ export default function Show({ conversation, initialMessages, conversations = []
                 </div>
             )}
 
-                    {/* Hired Confirmation Modal */}
-            {showHireConfirmModal && (
+            {/* Status Update Modal */}
+            {showModal && (
                 <div className="fixed inset-0 bg-slate-900/60 backdrop-blur-xs flex items-center justify-center p-4 z-50 animate-fade-in">
-                    <div className="bg-white rounded-3xl w-full max-w-md p-6 relative animate-zoom-in text-center space-y-4 border border-slate-200 shadow-2xl">
-                        <div className="mx-auto w-16 h-16 rounded-full bg-blue-50 border border-blue-100 flex items-center justify-center text-blue-600">
-                            <CheckCircle2 className="w-8 h-8" />
-                        </div>
-                        
-                        <div className="space-y-2">
-                            <h4 className="font-extrabold text-lg text-slate-900">{t('confirm_hire_title', 'Confirm Hiring')}</h4>
-                            <p className="text-xs text-slate-600 leading-normal px-2">
-                                {t('confirm_hire_desc', 'Verify this worker with your needs and make sure to hire this worker. If hired, you can view this worker in the Hired Workers page.')}
-                            </p>
-                        </div>
-                        
-                        <div className="flex space-x-3 pt-2 text-xs font-bold">
+                    <div className="bg-white w-full max-w-lg rounded-[28px] shadow-2xl border border-slate-200 overflow-hidden flex flex-col animate-in fade-in zoom-in-95 duration-200 text-left">
+                        {/* Modal Header */}
+                        <div className="p-6 border-b border-slate-100 flex items-center justify-between">
+                            <div>
+                                <h3 className="font-black text-slate-900 text-base">Update Application Status</h3>
+                                <p className="text-[10px] font-bold text-[#185FA5] uppercase tracking-widest mt-0.5">{selectedApp?.name}</p>
+                            </div>
                             <button 
-                                type="button"
-                                onClick={() => setShowHireConfirmModal(false)}
-                                className="flex-1 py-3 border border-slate-200 hover:bg-slate-50 rounded-xl transition-colors"
+                                onClick={() => { setShowModal(false); setSelectedApp(null); }}
+                                className="p-2 hover:bg-slate-50 text-slate-400 hover:text-slate-950 rounded-full transition-colors cursor-pointer"
                             >
-                                {t('cancel', 'Cancel')}
+                                <X className="w-5 h-5" />
+                            </button>
+                        </div>
+
+                        {/* Modal Body */}
+                        <div className="p-6 space-y-5">
+                            {selectedApp?.status?.toLowerCase() === 'hire_requested' && (
+                                <div className="p-3 bg-amber-50 rounded-xl border border-amber-100 text-[10px] text-amber-700 font-bold">
+                                    A hiring offer is pending. Waiting for worker confirmation.
+                                </div>
+                            )}
+                            {/* Status Selector */}
+                            <div className="space-y-2">
+                                <label className="text-[10px] font-black text-slate-400 uppercase tracking-widest">Select Stage</label>
+                                <select 
+                                    value={newStatus} 
+                                    onChange={(e) => setNewStatus(e.target.value)}
+                                    className="w-full px-4 py-3 bg-slate-50 border border-slate-100 rounded-xl text-xs font-bold text-slate-900 focus:ring-4 focus:ring-blue-500/10 focus:border-[#185FA5] outline-none transition-all cursor-pointer"
+                                >
+                                    <option value="Applied">Review</option>
+                                    <option value="Shortlisted">Shortlisted</option>
+                                    <option value="Rejected">Rejected</option>
+                                    <option value="Hired">Hired</option>
+                                </select>
+                            </div>
+
+                            {/* Notes Textarea */}
+                            <div className="space-y-2">
+                                <label className="text-[10px] font-black text-slate-400 uppercase tracking-widest">Internal Employer Notes</label>
+                                <textarea 
+                                    value={notes} 
+                                    onChange={(e) => setNotes(e.target.value)}
+                                    placeholder="Add any internal feedback, interview times, or notes about this candidate..."
+                                    rows={4}
+                                    className="w-full px-4 py-3 bg-slate-50 border border-slate-100 rounded-xl text-xs font-medium text-slate-900 placeholder-slate-400 focus:ring-4 focus:ring-blue-500/10 focus:border-[#185FA5] outline-none transition-all resize-none"
+                                />
+                            </div>
+
+                            {/* Status History Audit Trail */}
+                            {selectedApp?.status_history && selectedApp.status_history.length > 0 && (
+                                <div className="space-y-2 pt-2">
+                                    <label className="text-[10px] font-black text-slate-400 uppercase tracking-widest">Status Audit Log</label>
+                                    <div className="max-h-24 overflow-y-auto space-y-2 pr-1 border border-slate-100 rounded-xl p-2 bg-slate-50/40">
+                                        {selectedApp.status_history.map((hist, index) => (
+                                            <div key={index} className="text-[9px] text-slate-500 flex justify-between items-start">
+                                                <div>
+                                                    <span className="font-bold uppercase text-[#185FA5]">{hist.status}</span>
+                                                    {hist.notes && <span className="ml-1 text-slate-400 italic">({hist.notes})</span>}
+                                                </div>
+                                                <span className="text-[8px] font-mono text-slate-300">{new Date(hist.timestamp).toLocaleDateString()}</span>
+                                            </div>
+                                        ))}
+                                    </div>
+                                </div>
+                            )}
+                        </div>
+
+                        {/* Modal Footer */}
+                        <div className="p-6 bg-slate-50 border-t border-slate-100 flex items-center justify-end space-x-3">
+                            <button 
+                                onClick={() => { setShowModal(false); setSelectedApp(null); }}
+                                className="px-5 py-2.5 bg-white border border-slate-200 hover:bg-slate-100 rounded-xl text-[10px] font-black uppercase tracking-widest text-slate-600 transition-colors cursor-pointer"
+                            >
+                                Cancel
                             </button>
                             <button 
-                                type="button"
-                                onClick={() => {
-                                    setShowHireConfirmModal(false);
-                                    handleMarkHired();
-                                }}
-                                className="flex-1 bg-emerald-600 hover:bg-emerald-700 text-white py-3 rounded-xl shadow-sm transition-colors"
+                                onClick={handleSaveStatus}
+                                className="px-5 py-2.5 bg-[#185FA5] hover:bg-[#144f8a] text-white rounded-xl text-[10px] font-black uppercase tracking-widest transition-all shadow-md shadow-blue-500/10 cursor-pointer"
                             >
-                                {t('confirm_hire_action', 'Confirm Hire')}
+                                Save Status
                             </button>
                         </div>
                     </div>
diff --git a/tests/Feature/EmployerMessageWebTest.php b/tests/Feature/EmployerMessageWebTest.php
new file mode 100644
index 0000000..2ddc71f
--- /dev/null
+++ b/tests/Feature/EmployerMessageWebTest.php
@@ -0,0 +1,120 @@
+<?php
+
+namespace Tests\Feature;
+
+use App\Models\Conversation;
+use App\Models\Message;
+use App\Models\User;
+use App\Models\EmployerProfile;
+use App\Models\Worker;
+use App\Models\JobPost;
+use App\Models\JobApplication;
+use Illuminate\Foundation\Testing\RefreshDatabase;
+use Tests\TestCase;
+use Inertia\Testing\AssertableInertia as Assert;
+
+class EmployerMessageWebTest extends TestCase
+{
+    use RefreshDatabase;
+
+    protected $worker;
+    protected $employer;
+    protected $jobPost;
+
+    protected function setUp(): void
+    {
+        parent::setUp();
+
+        // Create a test worker
+        $this->worker = Worker::create([
+            'name' => 'Jane Smith',
+            'email' => 'jane@example.com',
+            'phone' => '+971500000001',
+            'password' => bcrypt('password'),
+            'status' => 'Available',
+            'nationality' => 'Ethiopian',
+            'age' => 28,
+            'salary' => 1500.00,
+            'availability' => 'Immediate',
+            'experience' => '2 Years',
+            'religion' => 'Christian',
+            'bio' => 'Experienced housemaid seeking employment.',
+        ]);
+
+        // Create an employer user
+        $this->employer = User::create([
+            'name' => 'John Employer',
+            'email' => 'employer_test@example.com',
+            'password' => bcrypt('password'),
+            'role' => 'employer',
+        ]);
+
+        // Create employer profile
+        EmployerProfile::create([
+            'user_id' => $this->employer->id,
+            'company_name' => 'John Ltd',
+            'phone' => '+971500000002',
+            'country' => 'United Arab Emirates',
+            'verification_status' => 'approved',
+            'language' => 'English',
+            'notifications' => true,
+        ]);
+
+        // Create a Job Post
+        $this->jobPost = JobPost::create([
+            'employer_id' => $this->employer->id,
+            'title' => 'Housekeeper',
+            'location' => 'Dubai',
+            'salary' => 1800,
+            'job_type' => 'full-time',
+            'status' => 'open',
+            'start_date' => '2026-08-01',
+            'description' => 'Test Job Description',
+            'requirements' => 'Test Requirements',
+        ]);
+    }
+
+    /**
+     * Test show conversation auto-creates JobApplication and passes it as a prop.
+     */
+    public function test_show_conversation_auto_creates_application_and_passes_prop()
+    {
+        // Authenticate session
+        session(['user' => (object)[
+            'id' => $this->employer->id,
+            'name' => $this->employer->name,
+            'email' => $this->employer->email,
+            'role' => 'employer',
+            'subscription_status' => 'active',
+        ]]);
+
+        $conversation = Conversation::create([
+            'employer_id' => $this->employer->id,
+            'worker_id' => $this->worker->id,
+        ]);
+
+        // Ensure no application exists initially
+        $this->assertDatabaseMissing('job_applications', [
+            'worker_id' => $this->worker->id,
+        ]);
+
+        $response = $this->actingAs($this->employer)
+            ->get(route('employer.messages.show', ['id' => $conversation->id]));
+
+        $response->assertStatus(200);
+
+        // Verify JobApplication was auto-created in database
+        $this->assertDatabaseHas('job_applications', [
+            'worker_id' => $this->worker->id,
+            'status' => 'applied',
+        ]);
+
+        // Verify Inertia response has the 'application' prop
+        $response->assertInertia(fn (Assert $page) => $page
+            ->component('Employer/Messages/Show')
+            ->has('application')
+            ->where('application.status', 'applied')
+            ->has('application.status_history')
+        );
+    }
+}
diff --git a/tests/Feature/WorkerJobApiTest.php b/tests/Feature/WorkerJobApiTest.php
index 21db7c7..2e1c935 100644
--- a/tests/Feature/WorkerJobApiTest.php
+++ b/tests/Feature/WorkerJobApiTest.php
@@ -166,6 +166,7 @@ public function test_worker_job_apis()
         $response->assertJsonCount(1, 'data.jobs');
         $response->assertJsonPath('data.jobs.0.title', 'Available Plumber Job');
         $response->assertJsonPath('data.jobs.0.posted_by', 'Employer User');
+        $response->assertJsonPath('data.jobs.0.status', 'new');
 
         // 2. Retrieve job details
         $response = $this->getJson("/api/workers/jobs/{$job->id}", [
@@ -175,6 +176,7 @@ public function test_worker_job_apis()
         $response->assertJsonPath('success', true);
         $response->assertJsonPath('data.job.title', 'Available Plumber Job');
         $response->assertJsonPath('data.job.posted_by', 'Employer User');
+        $response->assertJsonPath('data.job.status', 'new');
 
         // 3. Apply for job
         $response = $this->postJson("/api/workers/jobs/{$job->id}/apply", [], [
@@ -188,6 +190,13 @@ public function test_worker_job_apis()
             'status' => 'applied',
         ]);
 
+        // Verify status becomes 'applied' in list available jobs
+        $response = $this->getJson('/api/workers/jobs', [
+            'Authorization' => 'Bearer worker_api_token'
+        ]);
+        $response->assertStatus(200);
+        $response->assertJsonPath('data.jobs.0.status', 'applied');
+
         // 4. Prevent duplicate job applications
         $response = $this->postJson("/api/workers/jobs/{$job->id}/apply", [], [
             'Authorization' => 'Bearer worker_api_token'
@@ -728,6 +737,90 @@ public function test_worker_can_view_job_matching_only_skills()
             'title' => 'Electrician Needed'
         ]);
     }
+
+    public function test_worker_can_filter_and_sort_jobs()
+    {
+        // 1. Create jobs with different contractTypes and salaries
+        $job1 = JobPost::create([
+            'employer_id' => $this->employer->id,
+            'title' => 'Contract Plumber Job',
+            'main_profession' => 'Plumber',
+            'location' => 'Dubai Marina',
+            'salary' => 1000,
+            'workers_needed' => 1,
+            'job_type' => 'Contract',
+            'start_date' => now()->addDays(2),
+            'description' => 'Fix pipes description',
+            'status' => 'active',
+        ]);
+        $skill = \App\Models\Skill::firstOrCreate(['name' => 'Piping']);
+        $job1->skills()->sync([$skill->id]);
+
+        $job2 = JobPost::create([
+            'employer_id' => $this->employer->id,
+            'title' => 'Full Time Plumber Job',
+            'main_profession' => 'Plumber',
+            'location' => 'Dubai Marina',
+            'salary' => 5000,
+            'workers_needed' => 1,
+            'job_type' => 'Full Time',
+            'start_date' => now()->addDays(2),
+            'description' => 'Manage plumbing description',
+            'status' => 'active',
+        ]);
+        $job2->skills()->sync([$skill->id]);
+
+        // 2. Filter by job_type = Contract
+        $response = $this->getJson('/api/workers/jobs?job_type=Contract', [
+            'Authorization' => 'Bearer worker_api_token'
+        ]);
+        $response->assertStatus(200);
+        $response->assertJsonFragment(['title' => 'Contract Plumber Job']);
+        $response->assertJsonMissingExact(['title' => 'Full Time Plumber Job']);
+
+        // 3. Search for "Manage"
+        $response = $this->getJson('/api/workers/jobs?search=Manage', [
+            'Authorization' => 'Bearer worker_api_token'
+        ]);
+        $response->assertStatus(200);
+        $response->assertJsonFragment(['title' => 'Full Time Plumber Job']);
+        $response->assertJsonMissingExact(['title' => 'Contract Plumber Job']);
+
+        // 4. Sort by PRICE: HIGH TO LOW
+        $response = $this->getJson('/api/workers/jobs?sortBy=PRICE:%20HIGH%20TO%20LOW', [
+            'Authorization' => 'Bearer worker_api_token'
+        ]);
+        $response->assertStatus(200);
+        // The first job in list should be the one with salary 5000 (Job 2)
+        $this->assertEquals('Full Time Plumber Job', $response->json('data.jobs.0.title'));
+
+        // 5. Filter by job_type directly
+        $response = $this->getJson('/api/workers/jobs?job_type=Full%20Time', [
+            'Authorization' => 'Bearer worker_api_token'
+        ]);
+        $response->assertStatus(200);
+        $response->assertJsonFragment(['title' => 'Full Time Plumber Job']);
+        $response->assertJsonMissingExact(['title' => 'Contract Plumber Job']);
+
+        // 6. Filter by skills
+        $cookingSkill = \App\Models\Skill::firstOrCreate(['name' => 'Cooking']);
+        $job2->skills()->sync([$skill->id, $cookingSkill->id]);
+
+        $response = $this->getJson('/api/workers/jobs?skills=Cooking', [
+            'Authorization' => 'Bearer worker_api_token'
+        ]);
+        $response->assertStatus(200);
+        $response->assertJsonFragment(['title' => 'Full Time Plumber Job']);
+        $response->assertJsonMissingExact(['title' => 'Contract Plumber Job']);
+
+        // 7. Filter by salary range
+        $response = $this->getJson('/api/workers/jobs?salary_min=2000&salary_max=6000', [
+            'Authorization' => 'Bearer worker_api_token'
+        ]);
+        $response->assertStatus(200);
+        $response->assertJsonFragment(['title' => 'Full Time Plumber Job']);
+        $response->assertJsonMissingExact(['title' => 'Contract Plumber Job']);
+    }
 }