As the new year begins, 84 percent of U.S. hiring managers are positive about their companies’ hiring outlook for the first half of next year, with 52 percent feeling optimistic, 46 percent hopeful, 45 percent confident and 38 percent satisfied.
This is according to a recent Job Insights survey conducted for Express Employment Professionals by Harris Poll.
Most hiring managers (63 percent) anticipate increasing their workforce, with 19 percent planning significant increases and 44 percent expecting slight growth. Comparatively, in 2024, 63 percent of hiring managers also planned to increase their employee count, indicating consistent optimism over the previous year.
The primary drivers for increasing headcount include managing increased volumes of work (52 percent), filling newly created positions (46 percent) and addressing employee turnover (43 percent).
Additionally, companies are looking to handle expansion into new categories or markets (33 percent), acquire expertise in new areas (30 percent), manage work caused by AI concerns (22 percent), rehire for positions that were previously cut (22 percent), manage work caused by cybersecurity concerns (20 percent) and adapt to changes resulting from new legislative or policy implementations (16 percent).
Stable or Minimal Reductions in Workforce
Thirty percent of U.S. hiring managers say their company plans to maintain current workforce levels in the first half of 2025, mirroring the 29 percent who reported similar intentions in 2024. Meanwhile, only 6 percent anticipate decreasing their workforce, consistent with the 7 percent of companies that planned to cut staff in 2024. The primary reasons for these workforce decreases include cost-cutting measures (68 percent), company restructuring (22 percent) and aligning with decreased demand (21 percent).
Optimism Balanced with Persistent Challenges
“There seems to be more optimism in the market after a slowdown from the crazy highs of COVID and post-pandemic activity,” said Bill Sofio, an owner of Express and Specialized Recruiting Group franchises in North Carolina, about 2025 hiring predictions. “There was a year or two of settling down and it feels like a more normal business cycle is forthcoming.”
In New Hampshire, Express franchise owner John Roller agreed. His sales representative is hearing a lot more enthusiasm for hiring after the past few years of “uncertainty about government regulations, confidence in orders forecasted and a very tight labor market.”
However, despite the high optimism heading into 2025, both Sofio and Roller said businesses will still face challenges, including continued worker shortages, return-to-office mandates and pushback against offering slightly lower wages.
“The positive sentiments among U.S. hiring managers highlight a resilient and forward-thinking workforce,” said Bill Stoller, Express Employment International CEO. “Businesses are strategically positioning themselves for growth, addressing immediate needs like increased workloads and turnover, while also preparing for future challenges such as AI and cybersecurity. The outlook for 2025 is promising, driven by a workforce ready to innovate and adapt.”
The Job Insights survey was conducted online within the United States by the Harris Poll on behalf of Express Employment Professionals Nov. 11 through Nov. 26, among 1,001 U.S. hiring decision-makers.