Talent Market Insights - February 2025

Get in touch with our expert consultants to get tailored HR and Recruitment solutions for your business and personal growth! ??

Welcome to the February 2025 edition of our Talent Market Insights! ?? This month, we bring you expert insights on workforce trends, recruitment strategies, and career development. Whether you're scaling your team, optimizing your hiring process, or advancing your career in today's dynamic market, our carefully crafted insights will help you stay ahead of the curve.

?? Key Indicators ??

?? Canada:

• Unemployment Rate:?6.60% (decreased from 6.70% in December 2024, the lowest in three months).
• Inflation Rate: 1.90% (Climbed 0.1% in January as Canadians faced increased energy costs).
• Interest Rate: 3.00% (following a 25bps cut in January 2025).

???? United States:

• Unemployment Rate: 4.0% (down from 4.1% in December 2024, marking its lowest level since May 2024).
• Inflation Rate: 3.0% (surged 0.5% in January).
• Interest Rate: 4.25%-4.50% (Fed funds rate was kept steady during the January 2025 meeting).

?? Workforce News??

Compensation & Benefits

Salary Increase Forecast:?Canadian employers are scaling back salary increase budgets for 2025, moving closer to pre-pandemic norms, according to findings from Normandin Beaudry’s 2025 Salary Increase Pulse Survey.

• Among those making changes, more than half are reducing their budgets, while the remainder are increasing them, finds the survey.?
• Overall, the national average salary increase budget has dropped slightly from the summer projection of 3.4% to 3.3%, excluding wage freezes.

--------------------------

Wellbeing Benefits Decline: UK employer investment in wellbeing benefits has taken a sharp dip - down?13% since 2022?and?10% in 2024 alone, according to a global survey. Instead, companies seem to be shifting their focus to core benefits. is this a reset or a retreat?

Talent Market Updates

Federal Government Layoffs: The Trump administration has initiated mass layoffs across federal agencies, primarily targeting probationary employees who haven't yet gained civil service protection.

• Affected agencies include the Centers for Disease Control and Prevention, the Department of Veterans Affairs, and the Department of Energy.
• Approximately 1,000 federal workers lost their jobs at the Energy Department and the Internal Revenue Service (IRS).
• The National Park Service (NPS) and National Institutes of Health (NIH) have also been impacted.

--------------------------

Freight Industry:?Over 7,100 workers in the freight industry across the U.S. and Canada have been laid off.

• Amazon announced the closure of its fulfillment centers in Quebec, affecting about 2,000 jobs.
• Other companies involved include Kohl's, Del Monte Foods, and Allied Aviation Fueling.

--------------------------

Tech Industry: Approximately 23,494 workers have been laid off by 115 tech companies in 2025 so far. Along with major tech companies like IBM, Amazon, Google, and Microsoft, other big players also joined this trend in February:

• Workday (February 5, 2025): Laid off 1,750 employees, which represents about 8.5% of the company's total workforce to support ongoing growth efforts and shifting focus towards investments in artificial intelligence and global expansion.
• Okta (February 2025): Laid off 180 employees, which constitutes about 3% of its workforce. The decision is part of a restructuring plan to reallocate resources towards higher-priority areas to drive growth.
• Cruise (February 2025): Is laying off approximately 50% of its workforce, which translates to nearly 1,000 employees. Several top executives are departing, including CEO Marc Whitten. The remaining operations will be integrated into General Motors.
• Salesforce (February 4, 2025): Is eliminating more than 1,000 jobs. The cuts come as the company is simultaneously recruiting and hiring staff to focus on selling its new artificial intelligence products.

--------------------------

Remote Tech Hires: A new tool has been developed to block fraudulent remote IT hires linked to North Korea, enhancing cybersecurity measures in the hiring process for international companies.

?? Legislative Updates ??

?? Canada

1. Manitoba: Amendments to the Labour Relations Act now ban replacement workers during strikes and simplify union certification processes.
2. Newfoundland and Labrador?has banned doctor’s notes for sick leave, effective December 2024.
3. Ontario:?Bill 190?allows remote meetings for joint health and safety committees, effective October 28, 2024.
4. Ontario?introduced new job posting requirements, including compensation disclosure and AI usage transparency, effective January 1, 2026.

Check out our latest article for further insights into the implications of Ontario Bills 149, 190, and 229.

???? United States

1. EEOC Leadership Changes: President Trump appointed Andrea Lucas as Acting Chair of the Equal Employment Opportunity Commission (EEOC). Lucas has outlined priorities including addressing DEI-motivated discrimination and defending the biological reality of sex.
2. EEOC Policy Adjustments: In response to executive orders, the EEOC has removed its "pronoun app" and ended the use of the "X" gender marker during the intake process for filing discrimination charges..
3. State Laws Effective January 1, 2025: Various states including California, Connecticut, Delaware, Illinois, and others have implemented new laws covering issues such as paid leave, discrimination protections, workplace safety, medical marijuana, and pay transparency.

?? Practical Resources ??

??? Upcoming Events

1. Payroll 2.0: Transforming Strategy for the Modern Workforce

???Time: February 26, 2025 at 10:00 AM - 10:55 AM ET

???Location: Virtual

???Focus: Technological integration, compliance, and enhancing employee experience, etc.

????Register Here

2.?HR Technology Conference & Expo Europe

?? Date: March 4-5, 2025?

?? Location: Amsterdam, Netherlands?

?? Focus: Latest advancements in HR technology, digital transformation, and innovative solutions shaping the future of work.?

????Register Here

3.?SHRM Talent Conference & Expo 2025

???Date: March 24-26, 2025

???Location:?Nashville, TN

???Focus: Discover new ways to put skills-development at the forefront of talent management to empower organizations.

????Register Here

?? Must-Read Reports

1. Global Legislative Update February 2025 (Mercer)

?? Focus: Covers legal developments affecting retirement, health, executive rewards, talent, and other HR programs that affect local and/or expatriate employees.

???Access the Report

2. Future of Jobs Report 2025 (World Economic Forum)

??? Focus: Future employment trends, job creation, in-demand skills

??? Key Findings: The report discusses macro trends that are expected to create about 170 million new jobs this decade. It provides insights into future employment trends and the skills that will be in demand, which are essential for HR planning and strategy.

???Access the Report

?? Monthly Reading Picks ??

1. "Tomorrowmind: Thriving at Work with Resilience, Creativity, and Connection - Now and in an Uncertain Future" by Gabriella Rosen Kellerman and Martin Seligman. Gain practical frameworks for developing key skills such as prospection, cognitive flexibility, and social connection, crucial for employee success in an increasingly uncertain business landscape.
2. "You're Invited: The Art and Science of Connection, Trust, and Belonging" by Jon Levy. Challenge traditional career concepts and embrace the flexibility of "squiggly" careers with practical tools and insights.

?? Subscribe to our newsletter for exclusive insights! Stay ahead of the curve with the latest talent updates and insightful career development articles! ??Follow us on LinkedIn, X, Facebook, and Instagram.

Contact: [email protected] | www.talencore.com ? 2025 Talencore. All rights reserved.

Disclaimer: Data and insights sourced from reputable industry reports and government statistics.