A recent article in the Wall Street Journal (Fewer Americans Are Quitting Their Jobs – WSJ) highlighted a few key changes to the US labor market, namely that some of the job shopping we’ve seen over the past few years has begun to slow. American workers quit their jobs at a much slower rate last year – 39.6 million jobs, down 11% from 2023 and down 22% from the post-pandemic peak in 2022.
The last few years have introduced some interesting and quickly shifting data points, including a massive spike in American workers strategically changing jobs to maximize salary, benefits, and comp packages. This peaked in 2022 when tech, law, and other segments of the market experienced a massive uptick in new hires. You probably witnessed it on LinkedIn as individuals moved between large, rapidly growing white-collar companies as if you were watching professional athletes switch teams for the best contract.
Now the number of jobs per unemployed worker is closer to being in balance, stabilizing to 1.1 available jobs [per unemployed worker] after an interesting preceding few years.
This can appear as a cooling; as a restabilizing, or a shift in the landscape. Ultimately, it means that while there are still plenty of excellent employment opportunities in the market, the leverage and power has shifted slightly from the prospective employee to the employer. If you are in the position of entertaining offers, it would be advisable to not expect the compensation and benefits packages of 2022 but rather focus on finding an opportunity that maximizes your experience and skillset to best position yourself for professional growth. This isn’t to say you should not be compensated for your value, but rather that the halcyon days of unicorn offers are no longer here.
Hiring has also slowed, as many larger companies in the industries described above are looking to cut costs and automate rather than rely on layoffs. Meta, Chevron, and JPMorgan Chase have already announced layoffs this year, as well as companies like HP, GrubHub, and Autodesk. In fact, over 18,000 tech jobs have been cut at 75 tech companies so far this year (Tech layoffs 2025 update: HP, Grubhub, Autodesk, Ibotta cut jobs – Fast Company), which certainly complicates the market for people hoping to enter the field. What will automation and AI mean for jobseekers or job-switchers? That is a meaty topic that we’ll have to tackle in the next blog post!
What does this all mean for you as you plan your transition and career pivot?
Don’t stress! Some of this was a required leveling that was necessary after the imbalance of the last few years. A good example is Zoom, the well-known conferencing software. In August of 2021 the stock price was 383, but since 2023 it has hovered between 55.06-92.80. That is a dramatic price decrease of 76-86%! What may look like an implosion from afar was unrealistic to sustain.
However, the fundamentals of talent acquisition haven’t changed! Great companies are still looking for excellent leaders. While they may not be throwing packages around like perks for a #1 draft pick, negotiating for the best deal will always be acceptable and encouraged, and finding the right fit and culture is still one of the keys to success. Many industries are experiencing healthy growth and acceleration, including healthcare, hospitality, and even Consumer Packaged Goods and manufacturing, so it may also mean adjusting your perspective and considering options from a more diverse portfolio of companies to maximize your opportunities. You can also work with a trusted partner to help you identify opportunities that align with your interests and skills. In a messy and ever-changing job market, that peace of mind is priceless.