National Hiring & Employment Trends for 2025: What’s Ahead

If you’re feeling the strain from recent fluctuations in the US job market, you’re not alone. The rapid shift from extensive hiring to significant layoffs has created challenges for both employers and job seekers. As we close out 2024 and look toward next year’s hiring trends, a mix of optimism and caution prevails. Geopolitical tensions and inflation concerns persist, but there is hope in rising consumer spending, increased business investments, and a robust job market.

However, evolving cultural shifts and new labor laws add complexity to the hiring landscape. To successfully attract and recruit top talent, employers will need to stay ahead of the competition. Here’s what to expect in 2025.

Optimism with a Dose of Caution

Unlike recent years’ volatility, this year’s labor market has stabilized, with steady job growth over the past five consecutive quarters, surpassing economists' expectations. Wage increases have averaged 4.5% in 2024, slightly lower than 4.8% in 2023, yet still above pre-pandemic levels. Key sectors such as Information Technology, Engineering, and Finance remain competitive, with companies striving to secure top talent.

Despite the market’s cooling, demand for skilled professionals remains high. Employers are often spending more time sorting through applications without seeing an influx of readily available top talent. Experts project a job growth slowdown, with unemployment expected to reach 4% and job creation halving by March 2025. Both employers and candidates, perhaps weary from the intense hiring pace of recent years, are now more deliberate in their hiring choices, contributing to lengthier hiring processes and impacting productivity and morale.

A New Approach to Flexibility

The shift from remote work during the pandemic to a blend of in-office and hybrid roles has continued. Major companies, including Google, Apple, and Meta, have called employees back to the office, citing productivity and collaboration benefits. This trend is spreading across industries, with companies like Kohl’s Department Stores following suit. Fully remote roles are now less common, though they remain prevalent in fields such as technology and non-clinical healthcare.

New Labor Laws Reshape Hiring

New labor regulations passed in 2024 will influence hiring strategies in 2025. Minimum wage increases across 22 states will impact nearly 10 million workers, with some regions, such as Seattle, experiencing a bump from $15.74 to $16.28 per hour. Many states, including New York and Ohio, have introduced pay transparency laws, requiring salary disclosures for job applicants, with Illinois set to adopt similar measures in 2025.

Additionally, states like California, Minnesota, and Illinois have expanded sick leave and paid time off policies, with more states expected to follow suit.

The U.S. Department of Labor has raised salary thresholds for exempt employees in 2024, making approximately 4 million more employees eligible for overtime pay. This change, which varies by state, increased the threshold from $35,568 annually to $43,888 as of July 1 and will rise again to $58,656 on January 1, 2025. These adjustments require businesses to rethink their hiring strategies, potentially slowing down recruitment as employers become more selective and focus on candidates who bring the necessary skills and experience to drive productivity amidst increased labor costs.

Culture at the Forefront

After years of rapid hiring to fill talent gaps, a shift has occurred. Employers are now prioritizing culture alongside skills. Instead of simply filling positions, companies are focused on finding talent that aligns with their values and vision. This emphasis on cultural fit helps ensure candidates resonate with the organization’s beliefs, behaviors, and values. Many candidates, too, are re-evaluating roles, often seeking stability and alignment with an organization’s culture over a higher salary alone.