What to Expect in the Rest of This Year's Job Market
Especially in the most competitive fields, job seekers will need to strategize to stand out.


Lately, the headlines have been filled with news of layoffs, especially for federal employees and tech workers. Depending on your field, however, your job may not be at much risk of hitting the chopping block. And if you’re looking for a new role, your prospects may be closely tied to your corner of the market. For some job hunters, finding work can take months.
When it comes to unemployment, the figures started the year looking good, with the overall unemployment rate at a low 4% in January. But unemployment data is only part of the story. Although layoffs haven’t been widespread across industries, there are fewer job openings, says Harry Holzer, senior fellow in economic studies at the Brookings Institution and an economist at Georgetown University.
The economy added 143,000 jobs in January 2025, compared with an average of 166,000 per month in 2024 and about 216,000 per month in 2023, according to the U.S. Bureau of Labor Statistics. In general, employers “are holding on to their workers and at the same time cautious in their hiring,” says Allison Shrivastava, economist with the Indeed Hiring Lab.

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The situation varies by industry, she says. Almost 75% of the new jobs added in 2024 were in three industries: health care and social assistance, government, and leisure and hospitality.
For federal government jobs, the picture is changing significantly because of the federal hiring freeze that President Trump ordered when he took office and the extensive layoffs among federal government employees that followed. And that may cause a ripple effect that reaches other, related businesses and companies that are losing government grants and funding. “We’re not sure yet how far this is going to go and how big an effect it will have,” Holzer says.
The big winner has been health care. “Health care employment growth before the pandemic averaged 1.7% or 2% year-over-year, and last year it was 3.7%,” says Julia Pollak, chief economist at ZipRecruiter. “While other fields can consolidate and automate functions, in health care that’s difficult to do — you need people.”
In many other areas, people have struggled to find work. Some of the most challenging fields, Pollak says, have been human resources, marketing and communications. Tech hiring is down after an earlier boom. Blue-collar jobs in industries such as transportation and warehousing have not been growing as quickly as they were before the pandemic.
Some of these shifts can be especially tough for new graduates, historically the most sensitive group to any change, Holzer says. The 2025 College Hiring Outlook by the Drexel University LeBow College of Business found that employer optimism had reached its lowest point since 2021, with only 21% of employers rating the job market as “excellent” or “very good.”
“Employers are adopting a more cautious approach driven by economic pressures and budget constraints,” the report says. “With reduced optimism, employers are likely to prioritize selective hiring, focusing on essential skills and expanding internships and co-op programs to build a strong talent pipeline.”
Advice for job seekers
The following steps can help with your job search — and some of the guidance is different than it has been in the past.
If you’re a college student, start early
An internship in the summer after junior year and a focused career search helped undergraduate students at the University of Wisconsin School of Business find jobs in 2024: 95% of the graduates seeking employment had a job within six months of graduation, and 94% said they were satisfied with their job, says Melissa Leffin, executive director of undergraduate career, employer and pathway engagement for the business school. More than 60% ended up returning to the employer where they did their internship after their junior year, Leffin says.
Use AI to sharpen your résumé and cover letter
Even though it’s easy to apply to a lot of jobs online, you won’t get very far if you send the same résumé and cover letter to everyone. Employers are using artificial-intelligence filters to search for key words and skills to decide who makes it to the next level. Look for key words and skill sets in job listings and explain how they compare to your experience. Include skill development rather than just job responsibilities in your résumé.
While you shouldn’t use AI to write your cover letter and résumé, you can use it to refine them (by asking a tool such as ChatGPT to suggest improvements, for example) and practice for job interviews, Pollak says. She recommends signing up for e-mail alerts of job listings and acting quickly when one catches your eye. “Many companies look at applications only in the first week or so,” says Pollak.
Don’t overlook in-person networking
Join associations, go to conferences in person, and set up brief meetings — in person or on the phone — with people in fields you’re interested in. Even if you graduated college years ago, take advantage of its alumni network, and get in touch with former colleagues. In a competitive job market, networking can be critical, Leffin says. “Even if they don’t get you a job, they can give you information that can help with your cover letter and résumé.”
Consider pivoting to a field in a growing sector
Getting a health-related credential, such as in health tech or nursing, or taking time to get licenses or certifications for skilled trades can create more opportunities, Pollak says. “We see tremendous need in the skilled trades. Most employers can find laborers, but they can’t find the highly experienced skilled electricians, carpenters and plumbers.” If you want to remain in your sector, find out what certifications or continuing-education courses will give you an edge.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
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As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
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