The Job Market Is Confusing—What’s Really Going On?

The job market in 2025 is shifting. Hiring is softer than expected, job switching is at a low, and some industries are getting hit harder than others. But what does this really mean for you?

In this edition of The Career Warrior Newsletter, we break down the latest job market trends, the surprising revisions to 2024 employment data, and which industries are thriving—or struggling—right this second.

We’ll also touch on the evolving role of DEI in the workplace, the impact of AI on IT jobs, and most importantly—where you can pivot next if your industry is shrinking. Whether you're a mid-to-senior-level professional actively job searching or simply keeping an eye on market trends, these insights will help you stay ahead.

And remember—you don’t have to navigate your job search alone! Let’s Eat, Grandma provides expert resume help to give you the edge you need.

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The State of Hiring in 2025

It’s a strange labor market right now. Over the last four years, job security has been incredibly strong, with layoff rates at record lows. However, finding a job has become significantly harder.

According to Aaron Sojourner , senior researcher at the W.E. Upjohn Institute for Employment Research, "We’ve had four years of incredibly secure jobs for those who have them. But now it’s harder for people to find a job if they need it."

Key Trends:

• January 2025 job growth was softer than expected, with nonfarm payrolls increasing by just 143,000—below the 175,000, which we anticipated.
• Revisions to 2024 job numbers reveal a slowdown. January 2024 job growth was initially reported at 256,000 but was later adjusted to 119,000—a big drop from the original estimate of 353,000.
• Surprisingly, December and November 2024 were stronger than expected, with job numbers revised upward by a combined 100,000 positions.
• Job switching is at a historic low. In 2024, 39.6 million Americans quit their jobs—an 11% decrease from 2023 and a 22% drop from the 2022 peak. This suggests a stabilization in the labor market, with fewer workers seeking new opportunities.
• Wage growth remains steady, with average hourly earnings increasing by 4.1% in January 2025.

Industries Gaining and Losing Jobs:

Winners:

• Healthcare & Social Assistance (Added 66,000 jobs, nearly double the next strongest industry)
• Retail Trade
• Government

Losers:

• Mining
• Food Services
• Administrative & Support Services

The Redefinition of DEI in the Workplace

Some companies are scaling back diversity, equity, and inclusion (DEI) initiatives. Some major organizations, including Goldman Sachs and PBS, have reduced or eliminated their DEI programs, sparking conversations about the future of workplace inclusivity. Educators and nonprofits are stepping in to fill the gap.

A strategist writing for Harvard Business Review argues that DEI must evolve beyond performative gestures and shift toward measurable, data-driven outcomes. As Karsonya (Kaye) Wise Whitehead, Ph.D. , president of the Association for the Study of African American Life and History put it, "You don’t wait to be celebrated. We celebrate ourselves."

Career Paths That Involve DEI Skills:

1. HR & People Operations: Talent acquisition, HR business partners, and employee experience managers.
2. Learning & Development (L&D): Training & development specialists and organizational development consultants.
3. Corporate Social Responsibility (CSR) & ESG: Corporate social responsibility managers and ESG specialists.
4. Compliance & Risk Management: EEO compliance officers and ethics & compliance managers.
5. People Analytics & Data Roles: People analytics specialists and HRIS analysts.
6. Nonprofit & Advocacy Work: Nonprofit program managers and community engagement managers.

AI and Automation’s Impact on IT Jobs

The IT sector saw its unemployment rate rise to 5.7% in January 2025, up from 3.9% in December. This increase is largely due to automation and AI reducing the need for certain IT roles. Additionally, major tech companies have continued layoffs, further affecting employment in the sector.

If you're an IT professional looking to adapt or open up your job search, here are some ideas.

High-Growth IT Roles in the Age of AI:

1. AI & Machine Learning: AI ethics & governance specialists, machine learning engineers, and AI prompt engineers.
2. Cybersecurity & Risk Management: Cybersecurity analysts, penetration testers, and GRC (governance, risk, and compliance) analysts.
3. Cloud & DevOps: Cloud engineers, DevOps engineers, and site reliability engineers (SREs).

The key takeaway? While some traditional IT roles are shrinking, opportunities are emerging in AI governance, cybersecurity, and cloud computing.

Final Thoughts

The 2025 job market shows mixed results—while hiring is slowing, job security remains strong for those already employed. If you’re looking for a job or considering a career pivot, understanding these trends can help you make informed decisions.

Need an edge in your job search? Let’s Eat, Grandma is here to help with expert resume writing services designed for mid-to-senior-level professionals.

Until next time, keep pushing forward in your job search.

Chris

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