Navigating the Future: Key labor market trends that new grads need to know

Last week I had the opportunity to speak at the U.S. Department of Education’s Unlocking Employer Pathways Summit. I focused on the top trends I see shaping today’s labor market and how we — both employers, educators — can better prepare students for their future careers. Here are the labor market insights and tips, which I believe every new or soon-to-be graduate needs to know about:

Trend #1: The velocity with which skills are changing is happening faster than ever. In just under 10 years we have observed a 25% shift in skills attached to roles. We project this remarkable trend will accelerate even further, culminating in a 68% change by 2030, in part due to GAI. Therefore, it’s critical for today’s grads to maintain an “always on” mindset when it comes to learning new skills throughout their career. The most human of skills, like teamwork, critical thinking, problem solving, and communication, will be especially important.?

Trend #2: The early impacts of GAI on the workforce are here. According to the recent Work Trend Index from LinkedIn and Microsoft, AI literacy is increasingly in demand. 71% of business leaders say they’d rather hire a less experienced candidate with AI skills than a more experienced candidate without them, and 12% of recruiters say they are already creating new roles tied specifically to the use of generative AI. Acquiring AI skills will help grads stand out and stay competitive in a challenging hiring environment. Many professionals are already doing so - in fact, we’ve seen a 142x increase in LinkedIn members globally adding AI literacy skills to their profiles in a wide range of roles and industries.??

Trend #3: Durable skills - like communication, problem-solving, and decision-making - remain some of the most perennially in-demand skills. Our Executive Confidence Index found that 92% of U.S. executives agree that people skills are more important than ever, as these skills are critical in all industries but will be fundamental to the effective and responsible application of emerging GAI technology. There are tangible benefits to developing your durable skills, too. A February report from LinkedIn found that workers with durable - or “soft” - skills get promoted at a rate that’s 8% faster than those who don’t have those skills.

Trend #4: Worker mobility rates are on the rise. Gone are the days when professionals would spend their entire careers at one company. According to the World Economic Forum, “young people entering the workforce today can expect to have an average of 12-15 jobs over the course of their working lives (e.g., a new job every 3-4 years).” This finding is consistent with what we saw in the Work Trend Index, that 46% of professionals globally are considering quitting in the year ahead — an all-time high since the post pandemic Great Reshuffle of 2021. And across LinkedIn, we’re seeing more and more members make shifts across industries - especially during moments where certain industries are struggling to hire, while others are in hiring booms. Entering the job market today means embracing a "career lattice" instead of a "career ladder," where growth involves climbing, moving horizontally, and changing directions based on skills and continuous learning.?

Trend #5: Finding a job won’t be easy, but certain industries and regions hold promise for new grads. Going to where the jobs are - figuratively and literally - will help recent grads have a better chance of getting their foot in the door. According to LinkedIn’s Guide to Kickstarting Your Career, the fastest-growing industries for BA grads are Education (+15.3%), Government Administration (+14.4%), Construction (+11.7%), Consumer Services (+10%) and Financial Services (+4.8%), and cities with a particularly high rate of hiring early career professionals include Tucson, Tallahassee, Gainesville, Chattanooga, and Savannah, just to name a few.?

We’re in a time of great change, but also great opportunity. The key to navigating this evolving landscape is to stay curious and adaptable, continuously learn, and develop a strong set of durable skills. By doing so, you'll be well-prepared to seize the opportunities that lie ahead.