January 2025 - Predictions for the Year Ahead

Happy New Year! I trust you had a rejuvenating Christmas break. Reflecting on 2024, it's clear that it was a challenging year for many. As we turn the page, we see a true sense of optimism for what 2025 might bring.

2024 in Review

The data paints a picture of a restrained job market in 2024. Voluntary job movement was notably low, with the Australian Bureau of Statistics reporting only 8% job mobility—a stark contrast to the over 20%+ job mobility seen annually from 2021 to 2023. This stagnation was mirrored by an 8.4% decrease in job advertising on Seek and only a modest 3.5% rise in advertised salaries, largely driven by public sector award rate adjustments in July.

One of the most heated discussions of 2024 was the Work From Home (WFH) versus Return to Office (RTO) debate. Companies like Amazon and Tabcorp led the charge back to the office, reigniting a dialogue about the future of work.

2025: What Lies Ahead

As we step into 2025, the big question is whether job seeker confidence will rebound, leading to increased hiring activity. With interest rates stabilising over the past year, and potential cuts on the horizon, there's reason to be hopeful. Job seekers may be driven by a need for higher salaries to combat rising living costs, a desire for a better work-life balance, or simply the pursuit of personal growth.

My 3 Predictions for 2025:

1. Hybrid Work Will Prevail: Despite some leaders advocating for a full office return, hybrid work's advantages are too significant to ignore. We might see a shift toward a more structured hybrid model, with four office days becoming the norm. The conversation should broaden to encompass diverse flexibility needs, moving beyond the binary office-versus-home debate.
2. AI Adoption Will Accelerate:?AI's integration has been gradual, but 2025 will be the turning point. As we become comfortable with the technology, we'll see AI not just as a productivity tool but also as a means for upskilling and coaching. Notably, LinkedIn has reported a doubling in job posts referencing AI since 2021.
3. The Rise of Soft Skills: With AI and automation taking over routine tasks, soft skills will be in higher demand than ever. Skills such as communication, adaptability, problem-solving, and leadership will be crucial for navigating the evolving workplace landscape. See the World Economic Forum's thoughts of this below

Industry Insights: What is everyone else expecting?

KPMG's 2025 Outlook: KPMG's "Keeping Us Up at Night" report highlights digital transformation as the top priority for 2025, alongside emerging technologies and cybersecurity. Interestingly, talent acquisition has dropped to eighth place, possibly due to increased immigration boosting the talent pool.

KPMG Keeping us Up at Night

Deloitte's Perspective: Deloitte emphasizes the rapid adoption of generative AI and the infrastructure investments needed to fully harness its potential.

Deloitte 2025 Outlook

World Economic Forum's Future of Jobs Report:?The World Economic Forum also released its?Future of Jobs?2025 Report. This report takes a five-year perspective, based on responses from 1,000 companies globally.

Similar to the KPMG Report, 60% of organisations expect to experience technology or digital transformation in the next 5 years, specifically AI, Robotics and energy generation. As a result, they predict AI & Big Data, Infrastructure and Cybersecurity to be the fastest growing role types to meet this demand.

On a bigger picture, they predict 22% of today’s total jobs will be different in 2023 vs today. They also expect 39% of existing skills will be transformed or outdated – with Analytical Thinking the most sought after core skill, with 70% considering it essential. This is followed by resilience, creativity, flexibility and agility.

Linkedin Polls

Every Thursday, I share a poll with my network on Linkedin to get their views and opinions on key topics.

?

How do you feel about the economy in 2025?

?

I was interested to get a sense of how people were feeling heading into the new year.

It was encouraging to see almost half of people feel some form of optimism (43%) and just a quarter feel neutral about 2025.

Confidence in the future is the single most important factor in a modern economy. It will be interesting to re-run this poll in a few months to see how confidence has developed (or regressed!).

?

This time next year, do you expect to be in a new job?

Only a third of people expect to be doing the same thing in 12 months as they are today, and a staggering 53% of people expect to be somewhere else this time next year.

I feel this highlights the discontentment in the labour market in 2024. Just before the Great Resignation, about 40% of people were saying they would hope to be somewhere else this time next year…..watch this space!

?

Is it ok to take a nap at work?

?

I was initially having a bit of fun with this poll but was blown away by some of the comments advocating for, and outlining the importance, of a daytime nap. For example, where people have a medical condition, such as MS, or maybe due to ADHD (and need a mental recharge). Another example is the cultural differences in the Middle East, Asian and Southern Europe where the climate dictates the need for an afternoon break. My favourite example however was Tazmayn Goode highlighting the importance of a nap during a pregnancy ??

Reading List for 2025

I’m diving into several thought-provoking books right now:

• Rest by Alex Soojung-Kim Pang (Thanks for the recommendation, Prof. Dan Haagman )
• Right Kind of Wrong by Amy Edmondson
• Ultra-Processed People by Chris van Tulleken (Gift from Robert Neumann )
• The Hard Thing About Hard Things by Ben Horowitz

What’s on your reading list for 2025? Share or comment below

Thank you for reading! Feel free to like, comment, and subscribe for future editions. Your feedback and questions are always welcome in my DMs.