New iCIMS Workforce Data Indicates 2025 May Be the Year Employers Get Out from Under the Threat of a Looming Recession and Accelerate Hiring Again

The iCIMS Insights January 2025 Workforce Report uncovers new norms for employers and job seekers

Holmdel, NJ [Jan. 15, 2025] – After a year of sluggish labor market growth and job-hunting challenges, job seekers are employing modern tactics to land their next opportunity. iCIMS, a leading provider of talent acquisition technology, today released its iCIMS Insights January 2025 Workforce Report, exploring key workforce data trends and job seeker sentiment for the year ahead as employers prepare to navigate the 2025 job market.

Informed by iCIMS’ proprietary data from thousands of customers and a survey of 1,000 U.S. adults, the new research reveals competition among job seekers is heating up — but there’s a twist. Job openings are up 3% and job application activity surged 13% from the end of 2023, with applicants per opening (APO) rising 11%. Yet, despite the uptick in applications, over half (58%) of U.S. workers plan to remain in their current jobs this year, which is up from last year (49%). Is this surge in applications simply a result of candidates “spam applying” to as many jobs as possible to increase their chances, or has the convenience of tools like AI auto-apply allowed many to casually submit more applications without actively seeking a job change?

“Technology has made applying for jobs easier than ever, and candidates may be using this to their advantage, casting wider nets to explore the job market, assess their skills or keep their options open for the future—all without necessarily intending to make an immediate career move,” said Rhea Moss, global head of workforce and customer insights, iCIMS. “Employers need to understand this new dynamic and tap on AI-powered tools and data to refine their strategies. By identifying true intent and engaging more meaningfully with candidates, they can convert passive interest into their next best hire.

In 2025, bold shifts in candidate behavior and employer demand are expected to continue to shape the job market, per the new report:

• A Rose-Colored Outlook on the Job Market: Nearly three-quarters (72%) of survey respondents are very confident or somewhat confident in finding a job that meets their needs in 2025. This rosy outlook on the labor market is particularly prominent among young workers, with 87% of Gen Z confident in landing a new job — and another 27% even expecting to receive a raise or promotion at their company in the next 12 months.
• Tech Divide in a Multigenerational Workforce: Older workers are remaining in the workforce longer, with 23% of applicants at the end of last year being 45 and older. However, many are steering clear of tech-related jobs, likely due to a perceived skills gap or lack of confidence in adapting to rapidly evolving technologies — with only 9% of applicants for tech jobs at the end of 2024 over 45 and just 3% over 55. This hesitancy extends to their job search strategies too, with 96% of baby boomer respondents reportedly having no experience using AI tools to “auto apply” or auto fill a job application.
• High-Earning Toolbelt Jobs to Surge—and Gen Z is Leading the Charge: High-salary toolbelt jobs like electricians and service technicians are gaining traction, driven in part by Gen Z’s growing interest in manufacturing roles. In Q4 2024, manufacturing roles with over $100K salaries had an APO of 64 (well above the overall 44 APO for that salary range), with those under the age of 25 accounting for 47% of applicants for these roles at the end of 2024.
• Salary and Work-Life Balance to Drive Job Decisions: Salary (33%) and work-life balance (14%) have emerged as the top factors influencing job decisions in 2025, of those who plan to look for a new role. With the rise of return to office and economic uncertainty looming, these priorities are not entirely surprising. For Gen Z, these factors are even more critical, rising to 43% and 18%, respectively.

For more insights on the key workforce trends that will shape the talent acquisition landscape in 2025, download the iCIMS Insights January Workforce Report. The report also includes workforce predictions from iCIMS leaders and iCIMS partner Korn Ferry.