Breaking Down Job Market Trends and AI’s Impact with LinkedIn’s Chief Economist
Mar 27, 2025
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Karin Kimbrough, LinkedIn’s chief economist, offers fascinating insights into current job market trends. She highlights a steady employment rate amid increased competition and a challenging hiring landscape. Discover the booming sectors like healthcare and technology, along with the impact of recent government workforce changes. Kimbrough also explores the increasing demand for AI skills and the need for job seekers to adapt through upskilling, all while navigating the evolving expectations of remote work.
Despite steady unemployment rates, increased competition significantly impacts job seekers, leading to a perception of a tougher hiring environment.
Sectors like healthcare and technology show positive hiring trends, particularly for candidates with AI skills, despite overall cautious economic conditions.
Deep dives
Current Job Market Dynamics
The job market is experiencing a unique phase where, despite steady employment rates, job seekers face increased competition. Recent data indicates that while approximately 200,000 jobs are being created monthly, hiring remains sluggish, with many employers creating new positions rather than filling previous ones. This limited number of job openings has resulted in a dramatic 70% increase in the average number of applicants per role, contributing to a noticeable decline in workforce confidence. Consequently, this shift creates a perception of increased difficulty in securing employment, as candidates are met with more competition for fewer available roles.
Sector-Specific Insights
Certain sectors are showing positive hiring trends, with notable growth in technology, finance, and healthcare. The demand for healthcare professionals continues to rise due to demographic shifts as the population ages, while technology roles are increasingly in demand for those with AI expertise. However, there are concerns about the sustainability of growth in sectors such as accommodation and food services, which are highly dependent on consumer spending patterns. Overall, while some industries flourish, the outlook remains cautious as economic uncertainties loom.
The Shift in Remote Work Preferences
The remote work landscape has evolved significantly since the pandemic, with current data showing that less than 10% of available jobs offer remote options—a decrease from the pandemic peak. Many employers are pushing for a return to the office, leading to a disparity between the high demand for remote work and the limited opportunities available. This situation has caused tension, especially among workers who value flexibility and work-life balance, with job seekers still prioritizing remote positions. As companies adjust policies, the balance of power is shifting back toward employers, affecting workforce dynamics across various sectors.
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In this bonus episode of Get Hired, LinkedIn Editor Andrew Seaman sits down with LinkedIn’s Chief Economist Karin Kimbrough to break down the latest economic trends and job search data. Despite growth and steady unemployment rates, many job seekers are facing a tougher hiring process. Andrew and Karin discuss the data behind this and explore emerging trends, the growing importance of AI skills and more.
Key Points:
The current state of the job market
Bright spots in sectors like healthcare, finance and technology