Despite signs of cooling and declining hiring, the labor market remains resilient. However, signs of an approaching trough in job postings and continuing declines in quits may signal a more concerning slowdown in employment growth in 2025. Key sectors like health care and leisure and hospitality that supported robust employment growth in the early stages of the pandemic could begin to feel headwinds, as consumer demand returns closer to prepandemic levels.
In the meantime, employers have continued to focus on talent retention and development, with the majority of organizations surveyed saying that they will invest in employee wellness offerings. The four-day workweek has also been a significant focus for HR teams, with pilots of this shortened workweek showing compelling results in terms of improved employee well-being and productivity.
With an eye to the future, most respondents expect AI and Analytics to have the biggest impact on jobs in the next five years. This reflects the growing importance of data-driven decision making in the workplace and the emergence of new roles to support it. AI and ML Specialists and Sustainability Specialists rank among the fastest-growing roles, while Record-Keeping Clerks, Bank Tellers and Related Clerks, and Ticket, Cashier, and Data Entry Clerks are expected to see the largest declines.
Overall, most employers surveyed expect the COVID-19 pandemic to have a neutral effect on net job creation and destruction. They also expect wages to return to pre-pandemic levels, but at a slower pace.