As we head closer to the new year, job market trends have begun to emerge that will shape 2025. Let’s dive into the predicted trends for 2025 and how they will impact the job market.
Salary Transparency
In the digital age, so much information is available at our fingertips. That’s why an emerging job market trend is an increased demand for salary transparency. Potential candidates want to know exactly what to expect and how much they’ll make before committing to the interview process.
Pay transparency in job postings has more than doubled since 2020. According to Indeed Hiring Lab, more than 40% of US job postings now include employer-provided salary information. In 2025, even more job postings will list the salary range to attract qualified talent.
Demand for Soft Skills
As the job market shifts, there has been a greater importance placed on soft skills. Soft skills are becoming more sought after since 79% of leaders believe the longevity of technical skills is limited to five years or less.
Companies are looking for talent that can be developed within their roles. While hard skills are still essential, many employers are willing to sacrifice a few of these skills if a candidate shows high levels of promise with their soft skills.
RELATED: Hard Skills vs. Soft Skills: What Are They?
Increase in Hybrid vs. Remote Jobs
During the pandemic, there was a huge shift toward remote work. Even more recently, though, remote work has proven to be desirable for potential candidates. Though many companies have switched to a hybrid schedule, where employees work some days remotely and some days in the office, job seekers are still searching for remote opportunities.
However, those jobs just aren’t quite as available anymore.
The LinkedIn 2024 Global State of Remote and Hybrid Work report found that only 10% of job listings were remote, yet these received 46% of all job applications.
Tech/AI Impact on Jobs
Over the past two years, AI has undergone massive changes that have cemented its influence within many sectors of the economy. The rise of AI will continue to impact the workplace as these tools get developed further.
AI and automation are expected to continue their expansion, with an estimated 42% of tasks currently performed by humans likely to be automated by 2027. This doesn’t mean you should worry about AI taking your job!
AI is often used to enhance employee’s ability to perform tasks, not replace them entirely. Many roles still benefit from a human touch and employee oversight of this technology. AI and automation mostly help conduct routine and repetitive tasks like code review and drafting emails.
Plus, automation and AI could lead to new roles for workers will expertise in data science and data analysis. In fact, the demand for AI and machine learning specialists is projected to increase by 40% according to the World Economic Forum’s 2023 Future of Jobs Report.
READ NEXT: The Rise of AI: How Artificial Intelligence is Impacting the Job Market
Higher Job Movement
In recent years, it’s become less likely for every worker to stay a lifelong employee of their company. Nowadays, employees—especially millennials and Gen Z—often prioritize work-life balance and culture fit over company loyalty.
Due to this, it’ll be interesting to see where the job movement trend takes us next year. Although the current economy has a low rate of voluntary quits, there is always a chance that the trend from recent years will reemerge. In 2025, we keep an eye on if it shifts back to a job seeker’s market or a hiring manager’s market?
What These Trends Mean For 2025
These job market trends highlight that candidates have more power than before. The culture of work has shifted, which means that employees are given greater opportunities to vet jobs and determine the right fit instead of having to compete to impress companies.
The job market is shifting into a new phase within this decade, and if you need help navigating these changes, Insight Global is here for you. Whether you’re a job seeker or a hiring manager, we’ve got resources to make the search for candidates or employment easier.
Contact us today to get started!