A new report from ZipRecruiter reveals US employers are looking forward to a strong hiring market in 2025.
According to the Second Annual Employer Survey, 76% of employers plan to expand their workforce, with 53% anticipating modest growth and 23% expecting significant increases. Only 4% foresee job cuts.
Julia Pollak, Chief Economist at ZipRecruiter, said:
“Over 80% of employers across tech, financial services, and healthcare plan to expand hiring in 2025, signaling renewed labor market optimism after two years of declines.
“Easing inflation and stabilizing interest rates are fueling employer confidence. 64% say macroeconomic conditions will support hiring in 2025.”
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Key Findings From the Survey
ZipRecruiter surveyed 2,000 hiring decision-makers from a range of industries and company sizes.
The results provide insights into trends in employee retention, remote work, and compensation practices.
Retention Success and “The Great Stay”
Many employers report success in reducing turnover:
- Average turnover rates dropped 37% year-over-year.
- Enhanced job security, work-life balance, and improved benefits were cited as contributing factors by 47%, 46%, and 42% of respondents, respectively.
- Industries such as Business Support & Logistics saw the largest declines in turnover (73%), while Manufacturing (-18%) and Entertainment & Leisure (-4%) saw smaller improvements.
However, not all businesses experienced these gains. Four in 10 employers identified turnover challenges, pointing to:
- Inadequate compensation (43%)
- Limited career growth (41%)
- Poor work-life balance (40%)
Remote Work Trends Evolving
The report highlights a significant shift toward hybrid work models:
- 40% of employers support a mix of in-office and remote work in 2024.
- Fully remote roles have dropped to just 7%, down from 21% in 2023.
- Companies requiring at least three in-office days per week rose to 53%, compared to 37% in 2023.
Geographic pay differentials are also gaining traction:
- 12% of businesses adopted or widened geographic pay differences for remote employees.
- Only 8% removed such policies in 2024.
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Compensation Outlook for 2025
The survey reveals a shift in pay practices as businesses prepare for economic growth:
- 41% of employers increased base salaries for new hires in 2024.
- 32% introduced new pay scales or job tiers.
- 30% tied a larger share of compensation to performance metrics.
Pay raises are widely anticipated:
- 55% of employers plan increases between 1-4%.
- 24% expect raises of 5% or more.
- Larger organizations are leading the trend, with 30% of companies with 5,000+ employees planning significant pay hikes, compared to just 13% of smaller businesses.
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Methodology
The survey was conducted from September 24 to October 16, 2024, among over 2,000 verified talent acquisition professionals and hiring managers. Respondents came from a variety of industries and company sizes, sharing insights on recruiting, retention, and hiring trends.
Building Momentum for 2025
The ZipRecruiter report paints a promising picture for the US labor market, with employers gearing up for growth fueled by stable economic conditions.
As hiring ramps up, businesses continue to adapt their strategies for retention, remote work, and pay, ensuring they stay competitive in a dynamic market.
For more insights, visit the full report at ziprecruiter-research.org/annual-employer-survey.
