Whether you’re looking for work or trying to hire, the job market has cooled significantly this year. Companies aren’t cutting workers or scaling back on hiring, but job gains remain below what’s needed to keep up with population growth.
The cooling job market has also led to a transformation in how some companies assess talent. For example, skills-first hiring is becoming commonplace in many industries. Data shows that 4 in 5 employers now prioritize demonstrated abilities over academic credentials, especially when it comes to tech occupations.
A reshaping of the workplace has also emerged, with more employees accepting contract-based roles and working remotely more frequently. Companies are increasingly adopting a flexible four-day workweek, which has been shown to improve employee well-being and performance.
Employers have also been getting more transparent about salary information. Data shows that 63% of hiring managers report outlining salaries in job postings to attract top talent. This trend is expected to continue in 2025.
Other trends are emerging as businesses adapt to the changing job market. For example, more companies are relying on artificial intelligence (AI) to automate tasks and improve decision-making. This is likely to become a more prominent part of the job market in 2025, as AI capabilities mature and grow more widespread. Additionally, employers are focusing on environmental stewardship and climate-change mitigation to drive business model innovation. These are among the trends that respondents expect to be the most transformative in the next five years.