By Dawn Colston, West Zone Vice President, Express Employment Professionals 

Key takeaways:

• Market stagnation: The 2025 job market has more candidates but fewer open positions, with employers being more cautious about hiring due to economic uncertainty.
• Skills shortages: Critical gaps exist in skilled trades (as Baby Boomers retire) and soft skills like communication and adaptability that employers increasingly demand.
• Anticipated surge ahead: Despite current slowdown, staffing firms expect rapid hiring acceleration in supply chain and manufacturing once current market roadblocks clear.

The job market in 2025 has been marked by constant volatility, driven by economic uncertainty, evolving workforce expectations, and shifting generational trends. As employers face a mix of labor shortages and an influx of candidates, the traditional dynamics of hiring have become increasingly complex. In a market where stability seems elusive, recruiters and employers must adapt to new realities, from the rise of hybrid work models to the demand for soft skills and flexibility. This unpredictable environment calls for a more agile and strategic approach to recruitment, as both job seekers and employers navigate a landscape where change is the only constant.

The current state of the job market: A waiting game

Right now, the job market feels stagnant. We’re seeing an influx of job seekers, many of whom are re-entering the market due to layoffs, furloughs, or industry slowdowns, but there are fewer open positions to match. This is especially noticeable in Western states, where economic uncertainty is more acute.

For staffing businesses, this creates both challenge and opportunity. On one hand, recruiters are fielding a larger volume of candidates, many of whom need more hands-on support than in the past. From resume building and interview prep to coaching on hybrid work expectations, staffing firms are being called on to do more than just match résumés to roles.

At the same time, client companies are more cautious. While roles in marketing and sales remain active, hiring for operational positions has slowed as businesses wait for clearer economic signals. Staffing firms must balance this pullback in hiring with the need to maintain a healthy pipeline of qualified talent, ready to deploy when demand returns.

Generational shifts are changing how companies and candidates approach work. Many younger professionals who entered the workforce during the pandemic have limited experience with in-person environments, creating a disconnect as employers push for more on-site interaction. While remote work remains attractive to many job seekers, especially newer entrants, companies are prioritizing structure and collaboration. Hybrid models have emerged as a middle ground, though balancing flexibility with in-person expectations continues to be a challenge.

Where we see labor shortages: Skilled workers and soft skills

Skilled labor continues to be one of the hardest roles to fill for recruiters. As Baby Boomers and Gen Xers continue to retire, there’s a widening gap in the trades and technical fields. Although some older workers are delaying retirement due to financial concerns, the pipeline of experienced hands is shrinking. Meanwhile, younger generations are less inclined to pursue careers in these areas, creating a critical imbalance for recruiters.

There’s also a clear shortage of strong soft skills, like communication, adaptability, and customer service, which are increasingly in demand. Employers today aren’t just looking for technical competencies; they want employees who can grow with the company, communicate effectively, and handle challenges with professionalism. That’s where high-quality recruiting firms are stepping in, offering coaching and soft skills development alongside traditional job placement services.

While employers were forced to relax some of their hiring criteria during the height of the labor shortage following the COVID-19 pandemic, they’re beginning to tighten those standards again. With more candidates available, they can afford to be selective. Still, many employers are open to candidates with nontraditional backgrounds or resume gaps, especially if they demonstrate potential, a willingness to learn, and a track record of adaptability.

New realities for job seekers and employers alike

Today’s job seekers are approaching the market with different priorities. Growth, stability, and meaningful work top the list. They want to be part of organizations that provide modern tools, supportive environments, and opportunities for recognition, whether that’s financial incentives, flexibility, or the chance to make a tangible impact.

At the same time, job seekers are more cautious. Economic concerns make people hesitant to leave secure roles without another offer lined up. Even candidates who are actively interviewing may turn down offers if they don’t feel confident about the company’s future or the position’s long-term prospects. Recruiters are playing a critical role in ensuring clients communicate clear growth paths, set realistic expectations, and offer work-life balance to attract top talent.

Employers are also learning to adapt to this new era of work. One of the biggest misconceptions still lingering is that new hires will instantly adapt to traditional office norms. In reality, many candidates haven’t had the opportunity to build social capital through in-person networking or workplace mentoring. The pandemic interrupted those learning curves, and now it’s more important than ever to provide onboarding support and regular feedback to ensure success.

Retention is a growing concern for staffing companies as well. Employers must recognize that recruiting is just the beginning of the employee journey. Ongoing communication, quality control, and proactive management of job satisfaction are key to reducing turnover. Employers who excel in these areas will be the ones who continually assess whether their teams feel supported, aligned, and engaged. For staffing businesses, guiding clients through these evolving expectations will be critical to long-term success.

Looking ahead: A market on the brink of change

Despite current market stagnation, staffing businesses are seeing signs of a coming shift. Clients, particularly in supply chain and manufacturing sectors, are preparing for a surge. Freight reductions and product delays have temporarily stalled hiring, but once these roadblocks clear, rapid acceleration in staffing demands is expected across industries.

For staffing businesses, the immediate focus should be on helping clients prepare for this upcoming shift. Employers must refine their value propositions to attract top talent, invest in developing their current teams, and fine-tune hiring processes to ensure they can quickly scale when demand increases. Staffing agencies will need to work closely with clients to ensure they’re ready to pivot quickly as hiring needs surge. Meanwhile, candidates should focus on building transferable skills, clearly articulating their career goals, and staying engaged despite the market’s current stagnation.

No matter how the job market evolves, the human element will always remain essential. From soft skills to customer service to the simple need for authentic connection, success in the workplace still hinges on people. The better we understand each other’s needs, and respond with empathy and clarity, the stronger our workforce will be, no matter what challenges lie ahead.

Dawn Colston, Zone Vice President at Express Employment Professionals, leads sales across 13 U.S. states and 4 Canadian provinces, supporting nearly 200 offices and 10 Sales Coaches. With 28 years at Express, she also co-owns three franchises in the Seattle metro area.