The job market in 2025 is experiencing significant challenges for both job seekers and recruiters, according to new data from LinkedIn. While over 50% of workers plan to seek new employment, the hiring process has become more difficult for all parties involved.

Job candidates are submitting more applications than ever before, with nearly 40% applying to a higher number of positions. However, they are receiving fewer responses, leading to increased frustration. On the employer side, human resources professionals report that only 27% of applications meet all the required criteria.

“There’s a real mismatch right now between job seekers and hirers, and it’s partly driven by changes in the skills and roles that businesses need to stay competitive,” said Erin Scruggs, vice president and head of global talent acquisition at LinkedIn, in a video call.

This mismatch results in recruiters spending excessive time reviewing unsuitable applications, with 22% dedicating three to five hours daily to this task.

This disconnect between applicant qualifications and job requirements is creating a bottleneck in the hiring process. As a result, positions remain vacant for longer periods, potentially impeding company growth and leaving both job seekers and employers dissatisfied with the current state of recruitment.

Skills Gaps

Rapid technological advancements and evolving business needs are the main drivers of this skills mismatch in today’s labor market. LinkedIn’s Work Change Report reveals a staggering 300% increase in global hiring for artificial intelligence-related talent over the past eight years, while 71% of roles in their annual Jobs on the Rise list are newcomers, reflecting the dynamic nature of in-demand skills.

LinkedIn data projects that job skills will undergo a 70% transformation by 2030, largely due to AI advancements. As a result, HR professionals are struggling to find candidates with the right mix of technical and soft skills, with 51% citing technical skills and 45% mentioning soft skills as major hiring hurdles.

The mismatch between available and required skills is becoming increasingly apparent. Nearly two-thirds (63%) of HR professionals report a discrepancy between the skills job seekers possess and those their organizations need.

What Companies Can Do

To help mitigate the current skills gap, 88% of C-suite executives emphasize the importance of accelerating AI adoption in their organizations over the next year.

This push toward AI is reshaping the hiring landscape, with over half (51%) of global hiring professionals prioritizing AI-powered tools to streamline recruitment processes. These technologies are proving invaluable, with nearly three-quarters (74%) of recruiters reporting that AI alleviates the challenge of identifying qualified candidates.

Notably, LinkedIn introduced on Wednesday an AI-powered tool for small businesses. This new AI assistant, integrated into LinkedIn Jobs, aims to help small businesses quickly post job listings and efficiently identify qualified candidates.

Additionally, the company is expanding the deployment of its Hiring Assistant, an AI agent designed to automate repetitive tasks for recruiters, allowing them to focus on more strategic aspects of their work. This tool shifts the focus of candidate evaluation from traditional credentials, like educational background or previous employers, to a skills-based approach, potentially transforming how businesses identify and assess talent.

Recognizing the rapidly evolving skill requirements, businesses are also focusing on internal talent development. Seventy-seven percent of HR professionals indicate that their organizations are prioritizing upskilling initiatives in 2025, particularly in areas such as AI, sustainability and soft skills.

“Investing in upskilling and reskilling is how organizations can keep up with the fast-changing talent landscape, and ultimately stay ahead,” Scruggs stated.

LinkedIn Recommendations For Job Seekers

During the hiring process, it’s crucial to emphasize your soft skills, such as adaptability and communication, while continuously developing these abilities.

“Navigating the current job market is hard, but with a willingness to adapt, there is more opportunity for career growth,” said the talent acquisition leader.

In the current labor market, maintaining an up-to-date LinkedIn profile is more important than ever, as it’s often the first place recruiters look to discover talent and learn about candidates. To increase your visibility, showcase your skills in the experience section, as profiles with five or more listed skills receive up to 5.6 times more views from recruiters and 24 times more recruiter InMails, according to LinkedIn.

To stand out, employ smart networking strategies. If you’re a recent college graduate seeking employment, connect with professionals already in your desired roles. Don’t hesitate to send LinkedIn invitations requesting brief conversations. Be bold and ask for recommendations or introductions to hiring managers or HR professionals. Many people are willing to help and make introductions.

Furthermore, LinkedIn’s new job match feature allows you to quickly assess how your skills and qualifications align with job postings. This tool helps you identify suitable roles and focus your efforts effectively. You can gain detailed insights into which qualifications you meet and which ones you might be missing, aiding in your decision to apply.

For added confidence in your job search, look for the verification badge on job postings, which now appears on about half of the jobs listed on LinkedIn, providing peace of mind as you explore new opportunities.