In the world of talent acquisition, 2025 is shaping up to be a year of strategic pivots and smart adaptations. Indeed’s 2025 US Jobs & Hiring Trends Report paints a picture of a job market that’s carefully balancing on the edge of a potential “soft landing.”
The talent shortage is real
Finding great workers will continue to be challenging. Though the labor market remains resilient, growth has slowed to a crawl, dropping from a pre-pandemic average gain of 136,000 new workers a month to just 76,000. And while job postings are 10% above pre-pandemic levels (according to the Indeed Job Posting Index), they have declined 10% over the year.
Indeed’s research suggests that the labor supply challenge is driven by three primary factors:
- An aging workforce: The workforce is shrinking as Baby Boomers retire.
- Immigration constraints: Net immigration is anticipated to drop from an estimated 3.3 million this year to 1.1 million by 2027, and this may worsen with potential policy changes.
- Flat labor participation rates: Overall labor force participation has stagnated around 62.5%.
To stay competitive in the midst of these challenges, staffing agencies will need to rethink the traditional recruiting playbook. Developing flexible hiring approaches, prioritizing skills over degrees, and creating value propositions that attract limited talent pools are some of the tactics that can drive success in an increasingly competitive landscape.
Other highlights from the report include:
- Embracing pay transparency: Wage growth seems to be stabilizing at 3.2% – a significant drop from the 9.4% peak in 2021. And companies are becoming increasingly transparent about compensation — 57.8% of job postings on Indeed include salary information (up from 52.2% in September 2023), and 61% mention benefits, up from almost 40% in the second half of 2020.
- Generative AI is proving to be a game-changer: While the percentage of job postings containing GenAI terms remain low (about 2 in 1,000 jobs), Indeed is seeing rapid growth. The technology has the potential to help fill labor gaps, boost worker productivity, and create new job opportunities.
- Remote work is here to stay: Despite some pullback, remote work remains well above pre-pandemic levels. The Bureau of Labor Statistics estimates 23.8% of employees teleworked in October 2024, presenting ongoing opportunities for flexible staffing solutions.
The U.S. job market is showing signs of cooling, with slower job growth and declining job postings. However, unemployment remains low (hovering around 4.2%), and wage growth is still above inflation. The key challenge for 2025 will be maintaining this balance and avoiding a sharp downturn.
