Job seekers in 2025 face declining confidence and increased anxiety, while employers must adapt to mass AI-powered applications, prioritize DEI initiatives, and offer flexibility to attract quality candidates.
According to the most recent ZipRecruiter Job Seeker Survey, confidence among job seekers has fallen sharply throughout the first three quarters of 2024. It will be interesting to observe how confidence levels evolve in early 2025, particularly with the release of the next report. Factors such as the post-election environment and potential increases in job availability at the start of the new year may influence these trends. Regardless, it’s clear that job seekers are heading into 2025 with lower confidence levels than in recent years.
Searching for a job significantly impacts anxiety levels. According to recent data, 79% of job seekers report experiencing some level of anxiety during their search, with 20% reporting extreme levels of anxiety. Indeed also highlighted similar findings in its Workforce Insights survey, revealing that more than one in four respondents (27%) identified job search anxiety as the top obstacle to securing their desired job.
Heightened anxiety levels are taking a toll on job seekers' mental health. According to Resume Genius’ Job Seeker Survey conducted in August, 72% of job seekers reported that job hunting has negatively impacted their mental health, with women experiencing this slightly more often than men.
Some of the anxiety and mental health issues job seekers experience may be driven by the challenges they face during the job search process. One common frustration across all generations is not hearing back from employers, which consistently ranks as a top concern. This issue is particularly pronounced for Boomers and Gen X, with 55% and 50%, respectively, reporting it as a significant challenge.
Chart source: Resume Genius
Job seekers also report high levels of perceived competition in the job market. According to Greenhouse, over 90% of job seekers in the U.S. believe the job market is competitive, with 63% describing it as very or extremely competitive. Gartner also reports similar levels of increased competition. Their recent data shows that the percentage of candidates who said it is easy to find a job with their preferred employee experience dropped from 48% in July 2023 to 29% in September 2024.
Several factors contribute to this intense competitiveness, including low quit rates among currently employed individuals, a decline in new job postings compared to recent years, and the growing influence of AI technology, transforming how seekers find opportunities and optimize their applications.
Several recent surveys provide insight into how many people plan to apply for new jobs in 2025.
The Wall Street Journal captured the sentiment well: “More Americans are looking to switch jobs than at any point in the past decade.” While perceived competition among job seekers is already high, it may intensify further in 2025. Workers who are currently employed increasingly feel stuck—two out of three report this—and overall workplace sentiment and satisfaction are declining. Though quit rates have remained very low over the past year, workers will likely reach a breaking point. This could explain the strong interest in seeking something new in 2025.
Using data from 2024 as a guide for 2025, companies should expect a high number of applications in January. According to ICIMS’ end-of-year report for 2024, five out of the top ten days for completed applications occurred in January.
Two in five job seekers are applying for jobs in mass quantities, a trend that presents challenges for employers and recruiters. The application surge increases recruiter workloads, contributes to quality concerns, and lengthens the hiring process. For job seekers, this often means fewer responses and delays in receiving feedback.
To address these challenges, employers should optimize job advertisements to clearly define each role’s skills, qualifications, and expectations. Running highly targeted recruitment campaigns can help employers reach the right candidates and reduce the influx of irrelevant applications.
Another trend influencing the rise in mass job applications—and contributing to the quality concerns reported by employers—is the increased use of AI in the application process. A recent survey by Capterra found that 58% of job seekers use AI to assist in their job search. Even more striking, 83% admitted leveraging AI to exaggerate or misrepresent their skills.
The growing reliance on AI tools makes it increasingly difficult for recruiters to distinguish between genuinely qualified candidates and those whose applications have been artificially enhanced. As a result, recruitment KPIs are impacted, with companies experiencing lower interview-to-offer ratios, according to an Employ survey. A Workday report also found that 72% of leaders are raising their hiring standards to combat applicants using AI as part of the process. (Business Insider)
To address these quality concerns, employers are raising hiring standards and incorporating more pre-qualifying questions and robust skills assessments into their processes.
A recent job seeker survey by Greenhouse revealed that 81% of job seekers believe it’s important for companies to openly promote diversity, equity, and inclusion (DEI) in their job ads, with 53% saying it’s very important and 28% somewhat important. Similarly, JobTarget found that 76% of job seekers consider workplace diversity important when evaluating companies and job offers.
Despite this strong preference from job seekers, there’s a noticeable uptick in employers de-prioritizing DEI initiatives. Factors driving this trend include budget constraints, political pressures, and legal challenges—with some downstream effects stemming from the Supreme Court’s 2023 decision on higher education admissions. (Skadden)
The data is clear: job seekers prioritize employers with strong DEI commitments. Companies that authentically embrace DEI gain a significant advantage in both attracting new talent and keeping their best people engaged for the long term.
When considering what job seekers want and need, it’s important to recognize that Gen X and Millennials are often primary caregivers. Offering flexibility and caregiving benefits can be critical in supporting workers during this phase of life. Benefits such as telemedicine can address the needs of caregivers and employees alike, enabling workers to access healthcare without needing to take time off.
For Gen Z, stability and growth are top priorities. According to the ICIMS Class of 2024 Report, these findings align with Handshake’s Class of 2024 report, highlighting that 80% of Gen Z workers are already planning for retirement. Stability is, therefore, essential for them to feel secure about their financial future. Employers can appeal to this segment by offering benefits like emergency savings accounts and financial planning resources, which provide immediate support and long-term security.
Check out this helpful article for a comprehensive resource on what Gen Z workers want.
The Pew Research Center recently released insightful data on employee satisfaction (see chart below) that can help employers prioritize their recruitment efforts. Focusing on areas where employees report the lowest satisfaction offers the greatest opportunity to attract new talent.
According to the research, workers are least satisfied with their flexibility to work remotely, followed by opportunities for promotion and pay. To address these concerns, employers should:
Employers can strengthen their talent acquisition strategies by focusing on these areas and better appeal to job seekers.
Chart Source: Pew Research Center
As we look ahead, it’s clear that job seekers face a labor market defined by rising anxiety and intense competition. To attract quality talent, employers must tackle these challenges directly by offering workplace flexibility, establishing clear pathways for growth, and showcasing a meaningful commitment to diversity, equity, and inclusion.
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