2025 Workforce Forecast

2025 Workforce Forecast

As I reflect on the pulse of the world of work, the possibilities are palpable. The beginning of 2025 feels like standing at the edge of where uncertainty meets opportunity. Each of us has the power to shape our futures and remain active participants in designing the future of work.

Unknown factors will impact the workforce this year, alongside known trends we continue to watch. The ongoing rise of artificial intelligence (AI) and the gig economy, the persistent Big Stay and talent shortage, as well as the growing prominence of career catfishing and purpose-driven work are expected to be top of mind for many. The job market is preparing for new growth, with a renewed focus on quality and strategic hiring.

AI and Human Collaboration

As market conditions shift, organizations streamline their operations. AI adoption plays a pivotal role to create efficiency and open doors for innovation. There’s no doubt that technological skills continue to grow in importance at a rapid rate. However, they’re complemented by human-specific capabilities, such as critical thinking, flexibility, agility and the pursuit of curiosity, that are among the top 10 core skills. These are the same skills likely used to build DeepSeek AI , quickly and cost effectively. The future of work is not about AI replacing humans. Rather, how humans collaborate with AI effectively.

Gig Economy and Flexibility

The gig economy is expected to grow by 5% this year and 4% in 2026. This sector’s continued growth reflects an ongoing shift in how organizations approach workforce efficiency and integration. Business leaders increasingly seek the flexibility and scalability associated with hiring contingent workers. Individuals keep choosing temporary work to advance their careers due to the advantages these roles offer. Hands-on experience, career pivots and having the flexibility to pursue job opportunities that align with their goals are some benefits those in the gig economy gain.

Sue Bhatia shares an image of three people reviewing items on presentation board.

Shift to an Employer’s Market

After years of being candidate-driven, we are observing a job market swinging back towards employers. As job growth returns to pre-pandemic levels, job seekers face increased competition for job openings, and companies are more selective as they regain hiring leverage. Many employers are also tightening workplace policies, such as decreasing remote or hybrid schedules and adjusting other benefits. This shift signals a more cautious approach to talent management, which requires individuals to be adaptable and work to increase their value to potential employers. Global talent acquisition persists as organizations strategically grow their teams. I encourage skilled individuals in the U.S. to be more intentional about their careers to ensure they stay ahead of workforce shifts.

The Big Stay

The workforce shifted from the Great Reshuffle to the “Big Stay.” Employees are now more likely to remain in current roles or with their employers. According to the Bureau of Labor Statistics, the total number of individuals who quit their jobs decreased in recent years:

  • 2021: 47.8 million
  • 2022: 50 million
  • 2023: 30.5 million

While the 2024 total is not yet available, recent data shows fewer people are leaving their jobs. Employees are changing jobs 12% less year-over-year, making way for opportunities to pursue lateral or upward movement within their organizations. Future-focused leadership understands prioritizing employee retention is crucial in this new job market environment. The Big Stay trend may be short-lived, as remote work continues decreasing.

Persistent Talent Shortage

The workforce still has an ongoing employment shortage. The ratio of unemployed persons to job openings is 1 to 1.7, showing there are more jobs than available workers. Data shows there were 2 million additional people in the workforce in February 2020 compared to now. The demand for technology-focused skills is high, largely driven by the rapid AI adoption and growing cybersecurity needs, with more job growth expected in these areas.

Sue Bhatia shares an image of two people meeting in an office lobby.

Career Catfishing

“Career catfishing” is a trend where individuals accept a job and then don’t show up without an explanation. Findings show 34% of Gen Z, 24% of Millennials, 11% of Gen X and 7% of Boomers have engaged in this. While it’s important for individuals to seek roles that align with their goals, it’s equally vital to maintain professionalism and not burn bridges.

Purpose-Driven Work

More than ever, professionals want work to align with their personal beliefs and values. They strive to be part of creating positive change for our communities, Earth and the workforce. This trend is reflected in recent job market projections, such as workforce efforts for climate adaptation are expected to create 34 million additional jobs in the next five years. Job titles expected to grow include Autonomous and Electric Vehicle Specialists, Environmental Engineers and Renewable Energy Engineers.

These figures emphasize the growing importance of purpose-driven work and how it will continue shaping the world of work.

We’re at a precipice of change and can create the outcome we desire. As we navigate current workforce trends, we should remain optimistic about opportunities for development. In this job market, continuous skills advancement is more than beneficial, it’s essential.

I encourage all professionals to be intentional about their careers in 2025 and beyond. Embrace change, keep learning and seek roles that support your aspirations. Here’s to a year of growth, fulfillment and success in your professional journeys!

Which of the above trends do you think will most impact the job market? Share it in a comment below.

🌟 Click here to read past editions of Making It Happen where I share insight to help professionals thrive in the world of work. I also share advice and highlights on YouTube, watch here. Visit my website to learn more about me.

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Nilson Ivano

Founder at Linkmate | Effortless LinkedIn Leads | 7x More Visitors to Your Profile

1mo

This forecast sounds intriguing! Excited to learn more about it.

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Wellington Amankwa Mpeniasah

Education Advisor at Transforming Teaching, Education & Learning

1mo

Very helpful

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Ripudaman Singh

"Future-Forward Senior Technical Recruiter | Pioneering Talent Acquisition for Tomorrow’s Innovators"@ HarveyNash | Six Sigma (6σ) | AI & GenAI Explorer

1mo

In my view, the next decade will mark a significant "redistribution of talent across the globe." Advancements in AI and quantum computing will establish a level playing field for development centers worldwide. Stricter workforce policies in developed nations will open doors for third-world countries to attract talent by offering greater flexibility and competitive pay. Deepseek serves as a wake-up call (President warned to readjust course), demonstrating that local talent can create superior technologies when provided with modest investments and a supportive environment.

Carmen Wolf

Management & Leadership Development| Scale Growth| Transformation | Strategy & Operations |Results Driver| Team Builder

1mo

Sue Bhatia - Very insightful. I learned a new term today- cat fishing. It seems to me organizations experiencing cat fishing have major up-hill battles. Pay & Benefits are table stakes - In other words, they just get you a seat at the table. Winning organizations have to Great Places to Work. I want to work in this place, with these people, at this phase of the company's evolution, where the work is meaningful, and leaders skillfully lead. In this environment that appears to be a lot more difficult than is sounds.

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