The way we work and the type of work we do is changing rapidly. We are now seeing white collar workers lose out to robotization and automation, HR managers are facing significant challenges with the work attitudes of the current job seeker, there is a global skills mismatch, the rise of the gig economy and massive layoffs at large companies .
It seems that the labor economy is once again in the process of change. What trends will stay with us in the world of work in 2025?
AI Revolution
Software technologies have revolutionized the labor market from the perspective of the employer, the employee, and the business that developed these technologies. However, the explosion of artificial intelligence in the last two years has brought even more driving changes, mainly in terms of optimizing time and money. New artificial intelligence production tools are poised to introduce more automation and could create an additional 12 million job shifts in the US workforce by 2030, according to the McKinsey Global Institute of Directors and Senior Partners.
Skill mismatch
The global labor market faces a major problem: many workers have skills that do not match employers' needs. This skills mismatch can lead to high unemployment and lower productivity. According to the World Economic Forum's Future 2023 report, 87% of companies worldwide face skills mismatches.
Between now and 2027, businesses predict that 44% of workers' essential skills will be disrupted because technology is moving faster than companies can plan and scale their training programs.
Productivity challenges in telecommuting
While remote work remains popular, its impact on productivity is controversial. McKinsey research reveals that only half of HR leaders see employee productivity as a primary benefit of remote work. However, research also shows that even fully remote companies with the right operating models can outperform their in-person counterparts in terms of organizational health.
One thing we know for sure is that the remote and hybrid form of work will be with us for a long time. And everyone must work for productivity: both employees and employers.
The emerging role of the gig economy
Another trend that has scaled up on a massive scale is the gig economy. I am absolutely convinced that this is just the beginning and in 2025 the gig economy will only gain strength. In the UK, almost a quarter of couriers earn 90% of their total income through the gig economy.
Businesses also benefit from the gig economy by gaining access to a flexible workforce that can scale up or down based on demand. This flexibility allows companies to reduce costs associated with full-time employment and to respond quickly to market changes.
Advanced job search and HR technologies
Advances in job search and HR technologies are reshaping the way employers find and manage talent. The pandemic has accelerated the adoption of digital tools for recruitment and employee management, making processes more efficient and data-driven. For example, artificial intelligence and automation are increasingly being used to streamline hiring, more effectively match candidates to roles, and enhance employee engagement and retention strategies.
Additionally, these technologies help mitigate some skills mismatch issues by better identifying and addressing gaps in the workforce, such as creating training resources and upskilling programs. And its improvement will definitely stay with us in 2025.
As we look towards 2025, the only thing that remains the same is change. The new trends are absorbed so strongly in the labor market that they become the new normal for all market players: employees, employers and companies. Our common task is to improve the processes for which we are responsible, to accept the new reality of the labor market and to help others to adapt.
Valentin PeltekCEO and Co-Founder at Jobsora
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About Jobsora
Jobsora.com is a comprehensive online job search platform created to connect job seekers with potential employers, providing a comprehensive and easy-to-use resource for discovering employment opportunities.
We operate in 36+ countries and are used by 20 million candidates per month.
With a focus on improving the efficiency, personalization and accessibility of the job search experience, Jobsora aims to change the way people approach the job search process by minimizing the time and effort traditionally required.
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