As we close out 2024, the recruiting and talent acquisition space has been marked by notable shifts and evolving dynamics. From moderate job openings to the explosive growth of AI in recruitment, this year set the stage for what promises to be a transformative 2025. Terry Terhark, CEO of NXTThing RPO, shares his reflections on the year and offers predictions for what lies ahead in talent acquisition. 

2024: A Year of Moderation and Complexity 

This year brought a balancing act for recruitment. While overall job openings and unemployment levels moderated—with unemployment rising slightly but still remaining historically low—certain industries faced ongoing hiring pressures. Frontline sectors like retail, hospitality, manufacturing, distribution, and healthcare continued to grapple with high demand for workers, reflecting a persistent challenge. 

Meanwhile, technology, life sciences, and exempt-level hiring showed subtle rebounds starting in Q2, with momentum building steadily through Q4. These slow but promising gains hint at a healthier hiring climate for 2025. 

The AI Impact: Benefits and Challenges 

One of 2024’s most significant developments in recruiting were the rapid adoption of AI-driven solutions. While these tools streamlined processes and made applying easier for candidates, they also brought challenges. Many companies saw unprecedented application volumes—one organization reported a jump from 175,000 to 200,000 annual applicants to 125,000 to 200,000 monthly applications. 

This surge underscores the need for better technology in 2025 to help recruiters efficiently manage and evaluate massive candidate pools while maintaining a strong candidate experience. 

Optimism Following the 2024 Election 

With the election behind us, businesses are embracing a renewed sense of certainty, fueling optimism for 2025 hiring volumes. After two years of conservative hiring practices, pent-up demand suggests more robust hiring conditions across most industries. While it’s unlikely we’ll see the intense pressure of 2021 and 2022, 2025 is shaping up to surpass the hiring activity of both 2023 and 2024. 

Recruiter Job Market: Moderation with Challenges 

Recruiter job postings have eased slightly, with 37,954 openings reported in December 2024, however, the recruiter market remains tight, as roles are inundated with applicants—some postings receive over 500 resumes within 24 hours. While these challenges persist, we anticipate continued improvement in 2025, making the market more manageable for hiring professionals. 

2025 Predictions: Technology, Analytics, and Industry Trends 

As AI adoption continues to advance, 2025 will see an increased focus on analytics and predictive tools within talent acquisition. Many organizations are already leveraging AI, but the coming year will push the boundaries of what these technologies can achieve. 

Terry Terhark’s 2025 Outlook:
“We anticipate an improved hiring environment in 2025. Expect frontline hiring to stay pressured and even increase, with industries like software/technology and life sciences beginning to see meaningful growth. Sectors such as manufacturing, financial services, healthcare, and business services will remain strong, exceeding 2024 hiring levels. Companies must focus on attrition as improved labor markets may drive modest increases. Efficiency, candidate experience, and predictive analytics will be essential for recruitment functions to thrive.” 

What Companies Should Prioritize in 2025 

To navigate the evolving landscape, organizations should focus on: 

  • Efficiency: Streamlining processes to handle increased hiring volumes. 
  • Candidate Experience: Ensuring every touchpoint reflects your employment brand. 
  • Predictive Analytics: Leveraging data to anticipate trends and make informed decisions. 

As the labor market strengthens, businesses must also pay attention to retention and attrition, proactively addressing these areas to maintain workforce stability. 

Looking Ahead 

2025 promises to be a year of opportunity and innovation for talent acquisition professionals. With rising optimism, advances in AI, and a renewed focus on candidate experience, the year ahead will redefine how organizations attract, engage, and retain top talent. At NXTThing RPO, we’re excited to partner with businesses to navigate these changes and achieve recruitment excellence.