Despite an overall cooldown in hiring, the job market remains resilient. Labor shortages remain a critical challenge for many organizations, with job openings still outpacing available workers in late 2024, but the gap is narrowing. Employers are increasingly leveraging a variety of strategies to attract and retain talent, including enhanced employer branding initiatives, employee advocacy programs and authentic storytelling. Companies are also prioritizing diversity metrics, mental health support and flexible working conditions, to name just a few.
While cooling hiring could lead to job loss, more people are entering and re-entering the workforce in the form of new jobs or returning to work after a long break. This is good news for those seeking employment, and a sign that the current cooling may be a trough that will allow for consistent growth in 2025.
The share of job postings that advertise remote work has cooled, but has remained above peak levels from 2021 through early 2023 and mid-2024. The number of positions that offer a telecommute option is expected to rebound in 2025.
A widening of the qualifications required for a role has helped to mitigate some of the effects of a cooling job market, particularly in roles that require more technical knowledge. For example, fewer job postings are specifying that candidates need a specific number of years of experience, and more employers are embracing alternative forms of expertise, such as professional certifications and skills obtained from non-traditional sources like self-study or volunteer activities.