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iCIMS Insights January Workforce Report: The job market defrosts

January 28, 2025
5 min read
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The new year is off to a cold, wintery start, but the job market hasn’t had to defrost much. While December workforce activity endured its usual cool down, it seems like hiring might soon heat up. This workforce report covers:

  • 2024’s conclusion
  • Industry spotlights
  • Predictions for 2025

 

A surprise ending for 2024

Platform indicators, iCIMS Insights Workforce Report, January 2025

The final months of 2024 saw employers hesitate on hiring. But by December, employers appeared poised to punch up payroll in 2025. iCIMS data showed job openings and hires mostly in line with figures from 2023.

If that information doesn’t sound overwhelmingly positive, recall that hires were down 13% year over year in December 2023. To achieve some consistency following a presidential election and holiday season is no small feat.

As employers held steady, applicants picked up the pace. According to iCIMS data, applicants per opening rose 11% year over year in the final quarter of 2024 — a trend that aligns with recent headlines highlighting a tough job market. According to the U.S. Department of Labor, more than 1.6 million jobless workers have been looking for a job for at least six months.

Despite this, most Americans remain positive about their job prospects in the new year. iCIMS research found that 72% of respondents were very or somewhat confident about finding a job that meets their needs this year. And almost half of respondents said they are optimistic about the country’s economic outlook.

 

Industry spotlights: Hiring in manufacturing and tech

With more applicants taking action, competition is on the rise for job seekers. That varies widely, however, by industry and salary range.

Applicants battle for high-paying manufacturing roles

APO by industry and salary

Hiring is hot in manufacturing. Industry roles with salaries greater than $100K had an average of 64 applicants per opening (APO). For comparison, the average APO for jobs in the same salary range, regardless of industry, saw an average APO of 44. For roles in healthcare? APO hovered at a low 20 for six-figure jobs.

Jobs like electricians and service technicians are growing in popularity thanks in part to Gen Z’s interest in the industry. iCIMS data from the end of 2024 shows that a whopping 47% of applicants for manufacturing roles were younger than 25.

Older applicants absent from tech applications

Applicants by age for tech jobs

Just as in manufacturing, the generational makeup of applicants for tech jobs skews young. Nearly two-thirds of applicants for technical roles were younger than 25.

Older workers may be staying in the workforce longer — 23% of applicants were older than 45 at the end of 2024 — but they’re not showing up for tech jobs. In fact, at the end of 2024, only 9% of tech applicants were older than 45, and just 3% were 55 and older.

The recent shift in job search strategies may contribute to the dearth of older workers in tech. While younger job applicants are readily using AI to find and apply for jobs, 96% of baby boomers said they have no experience using the technology to “auto apply” for jobs.

 

Three predictions for 2025

We wanted to know how workers were feeling as they headed into the new year. So, we conducted an online survey in December, polling 1,000 U.S. adults on their sentiments about the workplace, their job prospects and more.

1. Most workers are happy and staying put

Respondents not looking for a job give reasons they're staying put

Fifty-eight percent of workers said they don’t plan to look for new jobs in 2025 — up from 48% last year. This finding aligns with recent reports from the U.S. Bureau of Labor Statistics, which found that quit rates are lower than they’ve been since the height of the pandemic.

This behavior raises a question: Are workers staying because they’re happy or because they’re worried? iCIMS data showed that 49% of workers are unsure how the economic landscape will affect their job security. And yet, many others reported optimism for the country’s economic future.

2. Workers desire salary, work-life balance

Top drivers for respondents who will look for a job

Our report found that salary and work-life balance are driving workers’ employment decisions. These factors are capable of influencing employees to stay in their current positions or seek better opportunities.

This information helps illustrate why many workers will spend time applying to jobs this year. It also gives employers a couple of clues as they attempt to retain and recruit high-quality talent. Employers that can offer competitive salaries and benefits while fostering work-life balance will give themselves a competitive edge when it comes to talent acquisition.

3. Gen Z is open to new opportunities

More than any other generation, Gen Z workers are entering 2025 with optimism about their job prospects and security.

While younger workers can be commended for their bright outlook, their perspective may come from a place of false security. Most Gen Zers reported that they’ve been unaffected by the layoffs and budget cuts that marked 2024.

Will Gen Z’s hopes be realized in 2025? Or have they underestimated the complexity of the current labor landscape? Only time will tell.

 

Want more insights on what’s to come in 2025?

Read the full January Workforce Report.

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About the author

Rhea Moss

Rhea Moss is director of customer experience and data insights at iCIMS. She oversees the iCIMS Insights program, which aggregates and anonymizes the billions of data points iCIMS’ software processes per year and transforms them into actionable insights to help drive business and hiring strategies. Previously, Rhea was head of products at prescriptive data, and served as product and program managers at MongoDB and Thomson Reuters.

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