2024 was a challenging year for job seekers. Layoffs continued, hiring slowed, and the job search process grew more frustrating.
With a new year, job seekers are hopeful 2025 will bring a shift in the job market. One that opens up more opportunities and rebalances the power between candidates and hiring companies.
Economists, journalists, and HR professionals have shared their opinions on what they believe will be the trends for the 2025 job market. In short, they predict that there will be improvement but it will happen gradually.
Five trends expected to impact the 2025 job market
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Hiring teams will remain cautious
Most companies will continue to stay in a “wait and see” position. They will be looking to the new US administration to see how it approaches the business community and immigration. Further, business will see how economic indicators, like global and domestic inflation, shift. If the US Federal Reserve continues to cut interest rates it will open up the availability of cheaper financing for projects and hiring.
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There will be continued investment in AI
Companies are feeling the pressure to invest more in AI. Those that haven’t yet will want to catch up. They see it as a way to modernize operations, drive innovation, and maintain competitiveness. As a result, hiring in this area will continue to accelerate. Demand will increase for roles such as data analysts, robotics engineers, and AI and machine-learning specialists.
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The “Great Stay” will continue
According to a LinkedIn survey from 2024, 43% of Americans say that they feel stuck in their jobs and up to 85% want to find a new job. Common reasons are burn out and the desire for higher compensation. Until the market shifts, employees will continue to stay and opt to “quietly quit”. If the market shifts favorably for employees it could trigger a wave of resignations.
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Remote work is still in demand
The battle between WFH and RTO will continue into 2025. A 2025 “U.S. Hiring Outlook” from the HR consulting firm Robert Half notes “workplace flexibility has become a paramount candidate expectation.” Going forward, flexible work arrangements will continue to be a topic of interest. Those companies that are open to work flexibility will likely settle for a hybrid model. Flexibility in work arrangements could become a regular component like PTO in job negotiations.
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Tech hiring will recover
There are signs tech hiring has picked in 2024 despite continued layoffs. Companies are looking to invest more in areas such as big data, cloud computing, AI, data analytics, climate change technology, and cybersecurity. The challenge with this trend is that it requires a specialized skill set in which few are competent. Demand is high and therefore learning in these areas will accelerate as tech talent figures out how to pivot.
How this will impact your job search
These trends may predict the year ahead but it’s anyone’s guess what will happen. As a potential job seeker, you should take these insights into consideration but manage your own search based on personal needs.
The best way to get timely insight on job-market trends and make worthwhile connections is through networking. By building relationships now you could be in a prime position for when the job market finally makes the favorable shift. You will have relationships already lined up and access to early information. And you will have built a reputation your competitors can’t count on.
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