The 2024 job market closed on a high note in December — exceeding economists’ forecasts with 256,000 added jobs. “The number handily beat expectations after two years of cooling in the labor market,” says The New York Times. “…and the unemployment rate edged down to 4.1 percent, which is very healthy by historical standards.”
The U.S. Bureau Labor of Statistics’ quarterly Employment Situation report noted an upward trend in health care, government, social assistance, professional and business services, information and retail trade sectors, with total U.S. payrolls reporting at a record-high of more than 159.5 million jobs. Coupled with many business’ indicated optimism with the new presidential administration, an increase in hiring in 2025 is expected.
How does this impact job seekers and employers this quarter? Here’s everything you need to know.
For the past several years, the balance in the job market can be compared to a teeter totter: one year it’s a candidate-driven market and the next the companies have the upper-hand. In 2025, “the bosses are back in command,” according to The Wall Street Journal.
A strong, yet lukewarm employment landscape is emboldening employers to cut back on attractive perks and benefits that would win over top professionals in a competitive market. For example, big companies are now pulling back on hybrid work schedules and college tuition assistance.
“The ratio of vacant jobs to jobless workers has fallen from a record of 2 in 2022 to 1.1 in November,” says The Wall Street Journal. “But 76% of the job growth in the past year has been in healthcare and education, leisure and hospitality, and government. In fields such as finance, information, and professional and business services, job growth has been far weaker. “
Still, as hiring picks up in these areas this year, the demand for skilled finance and accounting professionals will ramp up in response. Employers should consider looking to some of 2025’s key trends to remain ahead in the rapidly evolving technological landscape.
The other side of the job market coin, candidates are less confident of their standings in 2025. According to ZipRecruiter’s Job Seeker Survey, confidence among job seekers had fallen sharply throughout the first three quarters of 2024.
“Voluntary quits were also down 11.1% year-to-year, as 38.5% of workers said they left a job in the past year, compared with 43.3% who said the same a year ago, according to the 2024 Talent Retention Report by employment platform iHire.”
So, what does this mean for candidates looking to grow their career in this current environment? Upskill, upskill, upskill.
Artificial Information (AI) technology is providing ample opportunity to learn desirable skill sets, particularly in the areas of accounting, finance and HR. Platforms like YouTube even offer free training in key AI-based programs for individuals to take advantage of.
Partnering with staffing and recruiting firms is also a way for job seekers to gain an edge on their peers and gain access to job postings and opportunities that aren’t available on job sites.
Learn more about how our team can assist with your job-seeking or hiring needs today.
