As we enter 2025, the job market continues to evolve, with new trends that demand attention from business leaders, staffing professionals, and their partners. Insights from Dan Quigg, CEO of Public Insight, shared during a recent conversation with Haley Marketing’s CEO David Searns, reveal the key trends shaping the labor landscape. Understanding these shifts is essential for businesses looking to adapt their hiring strategies and stay competitive.
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Healthcare: Persistent Imbalance in Supply and Demand
The healthcare sector remains one of the most challenging industries for employers. Despite a steady demand for healthcare professionals, the supply of available candidates is not keeping pace. In August 2024, the number of published healthcare resumes was down nearly 40% compared to job postings, indicating a significant talent shortage.
This imbalance is worsened by the aftereffects of the COVID-19 pandemic, which drove demand for healthcare workers to unprecedented levels. Pay rates surged during the crisis, and while employers are now trying to normalize compensation, many healthcare professionals—particularly travel nurses—are resisting pay cuts. This trend is expected to continue placing pressure on healthcare staffing throughout 2024.
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Technology: Gradual Recovery Following Layoffs
The technology sector experienced a wave of layoffs in early 2024, particularly in software development and video game design, where companies have increasingly turned to AI to replace human labor. Dan noted that the worst of the tech layoffs may be behind us. Job postings in tech began to rebound in August, signaling the start of a potential recovery.
In early 2024, job seekers outnumbered positions—an unusual situation for this historically competitive sector. As the industry recovers, businesses must remain prepared for ongoing volatility while exploring ways to integrate AI without eliminating human expertise.
Logistics and Manufacturing: Bracing for a Seasonal Hiring Surge
Logistics, manufacturing, and supply chain management saw significant growth in late 2024, driven by the need to build inventory for the holiday season. Job postings in these sectors spiked in August, and the demand for workers is expected to continue surging through the year’s end.
As we approach the end of the year, logistics and the supply chain will explode, and drivers will be in great demand. David notes, “Our clients in driver staffing services tell us it’s a recruiting game. If you can find drivers, you’re placing drivers.” Businesses will scramble to hire workers for the peak season. Staffing firms should anticipate a surge in demand and prepare accordingly.
Compensation and Benefits: A Shift Toward Stability
Most industries are seeing a leveling-off in compensation. While sectors like healthcare continue to experience slight wage increases, others—such as manufacturing and logistics—have remained fairly flat over the past year.
One notable shift has been in benefits focused on work-life balance. While flex time and hybrid work surged in demand during the pandemic, this trend has leveled off as companies like Amazon push for a return to the office. To attract and retain top talent, employers offer flexible schedules and healthcare, though compensation remains the top priority for job seekers.
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The Impact of AI on the Job Market
AI’s growing impact on the labor market has sparked debate, especially in tech sectors like video game development. Some companies use AI to handle tasks traditionally done by humans, leading to fewer entry-level opportunities. However, AI’s role is to enhance productivity rather than entirely replace workers.
Dan emphasized that AI tools are designed to make employees more efficient. As AI evolves, businesses must balance automation with the human touch, ensuring that technology enhances—rather than replaces—creativity and innovation.
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REACH HIGHER with Access Capital
As 2025 unfolds, staffing professionals must remain vigilant and adaptive. The trends we’re seeing—the continued demand for healthcare workers, the recovery of the tech industry, or the seasonal surge in logistics—will all shape the talent strategies of the year ahead. By staying informed and leveraging data-driven insights, businesses can thrive in this evolving landscape
Access Capital provides the funding, insight, and expertise necessary to adapt to a changing labor market and thrive. For a free consultation, contact Access Capital today.
