As the calendar flipped to 2025, job seekers in the US returned to the job market with renewed optimism.
The research from Indeed’s Hiring Lab shows despite a lack of significant movement in the number of available jobs and historically low unemployment, job search activity surged in the early weeks of January.
This annual New Year’s boost in searches has become a familiar pattern, offering a glimpse into the mindset of those on the lookout for new career opportunities.
A Traditional Post-Holiday Dip Followed by a Resurgence
- Job search activity typically drops by 30% or more during the holiday season.
- In 2025, searches fell by 32% from Dec. 10 to Christmas Day as many people shifted focus to the holidays.
- After the festivities, interest picked up again, with job searches jumping by 22% by Jan. 29, compared to Dec. 10.
This annual New Year surge is a positive indicator for the labor market. It shows that, despite economic uncertainties, many people still view finding a new job as a common New Year’s resolution.
The post-holiday recovery in job searches mirrors trends from previous years, with one exception: 2020-2021, when COVID-19 fears caused a unique drop in activity.
The Quits Rate: A Key Signal for Job Seekers’ Confidence
The quits rate—an important indicator of job seekers’ confidence in finding a new job—has been notably low in recent months.
- After hitting new highs in 2022, the quits rate fell below pre-pandemic levels in mid-2024 and has remained steady around 2%.
- A healthy quits rate indicates that workers are confident enough to leave their current jobs, knowing they can find new opportunities.
Economists and policymakers are watching for any signs of improvement in this rate, as an increase would suggest a more balanced labor market.
Job Postings: A Stagnant but Encouraging Outlook
While job seekers have been more active, the number of job postings has remained relatively stagnant since late 2024.
- As of early February 2025, job postings were about 10.2% higher than pre-pandemic levels (Feb. 2020), but growth has slowed significantly compared to previous years.
- Job postings have hovered between 10-12% above pre-pandemic levels since November 2024.
Despite the stagnation, there are some positive signs:
- Professional sectors, especially those offering remote work, tend to see the biggest dips during the holidays but also experience the largest rebounds. This year’s rebound, while modest, is the highest in two years.
- High-remote sectors, which were hit hard by the pandemic, are showing signs of recovery. Job postings in these areas are slowly climbing toward pre-pandemic levels after declining in 2022 and 2023.
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Remote Jobs on the Rise? A Look at High-Remote Postings
The demand for remote work remains high, and the data shows a modest but consistent upward trend in job postings for remote positions.
- Though year-over-year growth for high-remote sectors is still negative (-0.07%), the trend is heading in the right direction.
- As of February 2025, job postings in these sectors are ticking back up, offering hope to knowledge workers who rely on flexibility.
Looking Ahead: Job Seekers and the Road to Recovery
The optimism driving job searches at the start of 2025 is clear, but it remains uncertain whether the heightened interest will translate into more hires.
The job market continues to show resilience, but the overall number of job postings has not significantly changed, meaning more competition for fewer available opportunities.
That said, the rebound in high-remote job postings and the slow improvement in the quits rate are encouraging signs.
The job market in 2025 may not be experiencing explosive growth, but these modest improvements offer hope that new opportunities could open up in the months ahead.
Job seekers can expect a competitive environment, but those willing to wait for the right opportunity may find their persistence pays off in the long run.
Key Takeaways
- Job searches surged post-holiday, reflecting continued interest in new opportunities.
- The quits rate remains low, signaling caution among workers regarding job changes.
- Job postings have stagnated but show a small rebound, particularly in high-remote sectors.
- Despite fewer job postings, optimism among job seekers remains high as 2025 unfolds.
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Expert Comment
WhatJobs CEO Alex Paterson:
“As we enter 2025, it’s clear that job seekers remain resilient, despite a job market that hasn’t dramatically shifted.
The annual surge in job searches signals that, even in a competitive landscape, people are eager to explore new opportunities.
“At WhatJobs, we remain committed to connecting candidates with the right roles, and we’re optimistic about the continued growth of the job market as both employers and job seekers adapt to the changing landscape.”
FAQs
Which job will see the biggest increase of demand by 2025?
By 2025, several professions are expected to experience significant growth, driven by technological advancements, shifting demographics, and industry needs.
One of the biggest increases will be in artificial intelligence (AI) and machine learning roles. As AI continues to integrate into various sectors, demand for AI specialists, such as engineers and consultants, is set to surge.
LinkedIn’s “Jobs on the Rise” report and the World Economic Forum’s “Future of Jobs Report 2025” both highlight these positions as among the fastest-growing.
The technology sector will also see a rise in demand for software developers, fueled by the ongoing digital transformation across industries.
In addition to tech, renewable energy careers are growing rapidly. With the global shift towards sustainable energy, jobs like renewable energy engineers and solar photovoltaic installers are becoming increasingly sought after.
As solar energy adoption rises, so too does the need for professionals to install and maintain solar systems.
These trends indicate that AI specialists, software developers, and renewable energy professionals will dominate the job market by 2025. With the right skills, these fields offer promising opportunities for job seekers in the coming years.
What is the future of work in 2025?
By 2025, the workplace is expected to be transformed by technological advancements, particularly in artificial intelligence (AI) and automation. AI will become deeply integrated into various industries, automating routine tasks and enhancing human capabilities.
This shift will not replace human workers, but rather complement their efforts, allowing them to focus on more complex, creative tasks.
Many roles will evolve as workers collaborate with AI to improve productivity. In addition to technology, the future of work will include more hybrid and flexible work models.
As companies continue to embrace remote work, employees will be given greater flexibility to choose where they work, improving work-life balance and broadening talent pools.
However, some organizations will encourage office returns by offering perks and salary increases. Employee well-being will also be a priority, with companies focusing on mental health and work-life balance.
Alongside this, the need for upskilling will grow as workers adapt to new technologies. The green economy will expand, creating new jobs in clean energy sectors like solar and wind power, as governments invest in sustainable projects.
Additionally, AI will impact creative industries, assisting in tasks like content generation and digital media creation, thus transforming traditional workflows. These changes will shape the workplace of 2025.
Which skill will be most required by 2030?
By 2030, the most sought-after skill is expected to be analytical thinking.
The World Economic Forum’s “Future of Jobs Report 2025” highlights that 70% of companies consider analytical thinking essential, underscoring its critical role in navigating complex, data-driven environments.
In addition to analytical thinking, other key skills projected to be in high demand include resilience, flexibility, agility, leadership, and social influence.
These competencies are vital for adapting to rapid technological advancements and evolving workplace dynamics.
Furthermore, the increasing integration of artificial intelligence (AI) and automation across various industries is expected to drive demand for skills in digital literacy and technological proficiency. The ability to effectively collaborate with AI systems and leverage digital tools will be crucial for future professionals.
In summary, by 2030, a combination of analytical thinking, adaptability, leadership, and digital literacy will be essential for success in the evolving job market. Developing these skills will be crucial for individuals aiming to thrive in the future workforce.
