The 2025 hiring landscape presents a mix of optimism and caution for U.S. hiring managers. While many feel hopeful and confident about the year ahead, a new Express Employment Professionals-Harris Poll survey reveals ongoing challenges in finding qualified candidates and adapting to new technology like artificial intelligence (AI). This article explores these key hiring trends, focusing on candidate shortages, the role of AI, and how companies are positioning themselves for success.
Key Challenges in the 2025 Job Market
According to the survey, 92% of hiring managers expect to face challenges in the months ahead. The most cited obstacles include:
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Finding Qualified Candidates (45%)
- Despite optimism, the talent shortage remains the primary hurdle.
- 32% of companies currently have open positions they cannot fill, although this trend is improving compared to previous years.
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Adapting to Artificial Intelligence (AI) (37%)
AI is playing a growing role in recruitment processes, but many companies are still struggling to implement it effectively. The top challenges include:- Leveraging AI to reach a broader pool of candidates
- Using AI for candidate assessment and job application processing
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Increased Competition in the Job Market (27%)
The demand for top talent is driving intense competition among employers, making it even harder to attract the right candidates.
The Skills Gap: A Persistent Concern
Many hiring managers cite a skills gap as a critical factor behind unfilled positions. Key findings include:
- 39% say candidates lack relevant experience.
- 38% report a shortage of applicants with the necessary hard skills.
- 33% identify a lack of soft skills as a major issue.
- 33% mention a general shortage of applicants.
Impact of Extended Unemployment
Extended unemployment further exacerbates the skills gap. 64% of hiring managers believe that prolonged unemployment erodes both hard and soft skills, particularly among young adults aged 18–26.
Embracing Technology and Building Skills: The Path Forward
Despite these challenges, companies remain resilient and adaptable. According to Bill Stoller, CEO of Express Employment International:
“By embracing technology and prioritizing skill development, companies can create a more agile and capable workforce. This proactive approach will address current challenges and position companies for long-term success in an ever-changing market.”
Strategies for Overcoming Hiring Challenges
- Invest in Skill Development: Upskilling existing employees can help bridge the gap in hard and soft skills.
- Adopt AI Thoughtfully: Use AI for candidate outreach and assessment, but ensure human oversight remains central to the process.
- Build Competitive Compensation Packages: Offering attractive benefits and a strong company culture can help win the talent race.
- Focus on Younger Talent: Address skill erosion among younger job seekers with targeted training and mentorship programs.
While the hiring market in 2025 poses its fair share of challenges, companies that embrace technology and invest in skill development will be better positioned for long-term success. By focusing on adaptability and proactive solutions, hiring managers can navigate the complexities of the modern job market and build a workforce that meets the demands of the future.
