Job Searches Require More Effort Amid Hiring Slowdowns

While the labor market continues to be strong, a significant number of workers are finding that their job searches are taking more time and demand greater effort. According to our latest Job Seeker Survey , 63 percent of participants believe there is currently a hiring slowdown, marking a nine percent rise from our Fall 2023 survey. This observation corresponds with recent reports indicating that employers are now hiring less aggressively than in previous years. This hiring slowdown and other factors are creating more challenging searches for job seekers.

A graphic that highlights the percentage of workers who feel employers have slowed down the hiring process: Fall 2023 – 54% Spring 2024 – 59% Fall 2024 – 63%

While job growth has remained steady over the last several months, job seekers are finding it more difficult to take advantage of the labor market. 68 percent of respondents indicated they are putting in more effort than they expected would be needed to land a job. This involves a greater commitment of hours dedicated to refining resumes and preparing for multiple rounds of interviews.
Nearly 18 percent of those surveyed stated that they expect to complete 100 or more applications before being hired – an eight percent increase from our Fall 2023 Job Seeker Survey.

A graph that highlights the percentage of workers who expect to apply to 100 or more jobs before being hired. 26% of respondents expect to complete 1 to 5 applications. 31% expect to complete up to 25 applications. 14% expect to complete up to 49 applications. 11% expect to complete up to 99 applications. 18% expect to complete 100 or more applications.

Adapting to Job Search Difficulties Amidst a Hiring Slowdown

The current landscape of job searching is fraught with numerous challenges that extend beyond mere competition for positions. The slowdown in hiring processe s, coupled with the increasing prevalence of fraudulent job postings, necessitates a heightened level of vigilance and perseverance from job seekers. As they navigate this treacherous terrain, it is imperative they employ both strategic application tactics and discernment to safeguard their personal information and maximize their chances of securing genuine employment opportunities.

Additional Survey Takeaways

Read our Job Seeker Survey report on worker financial well-being
34 percent of job seekers feel their chances of finding a quality job are worse compared to last year
45 percent of those surveyed said they are more likely to explore new job opportunities in 2025 compared to 2024
56 percent of respondents indicated that the economy/job market is the most significant barrier or challenge to their current or most recent job search

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Employee Financial Well-Being on the Decline in Latest Job Seeker Survey

It’s no secret that hiring is slowing down and according to research from Fannie Mae, wage growth for workers is showing signs of stagnation. Despite diminishing recession fears, the present hiring environment is affecting employees' financial well-being.

Over this past year, our Job Seeker Survey series has shown that respondents are struggling with longer hiring searches and putting in more effort to find work. The aggressive hiring that characterized the labor market in recent years appears to be fading. This adjustment highlights the challenge of wage increases versus inflation, casting a shadow on employees' financial well-being.

In our most recent Job Seeker Survey – we asked over 1,600 respondents “How would you describe your financial situation compared to this time in 2023?” 51 percent of respondents stated that they feel they are financially worse off compared to a year ago. This is up four percent from our Spring 2024 survey and a six percent increase compared to our Fall 2023 survey.

As the economy and job markets stabilize, workers are encountering fewer chances to enhance their financial standing. The number of jobs continues to outpace the number of available workers, but employers are becoming more selective and patient in their hiring processes.

Employee Financial Health Affected as Wage Growth Diminishes

Traditional methods of achieving wage growth like job searching and negotiating raises have become less successful in boosting wages compared to previous years. Our Job Seeker Survey revealed that fewer respondents receivred a raise in the past year. This highlights a labor market where earing a wage increase is more challenging. Additionally, wage growth lagging behind inflation worsens the difficulty for workers to keep up with the cost of living.

Percentage of Respondents That Have Received A Raise In The Last Year Vs. Those That Have Not

Have Received A Raise	Have NOT Received A Raise
Fall 2023 – 43%	Fall 2023 – 56%
Spring 2024 – 34%	Spring 2024 – 64%
Fall 2024 – 29%	Fall 2024 – 65%

This data demonstrates a clear trend: fewer workers are receiving raises, which directly impacts their financial stability and satisfaction. As employers navigate a more selective hiring landscape, it is crucial to recognize the growing importance of competitive compensation and other benefits to retain top talent. Addressing these issues proactively will not only enhance employee retention but can also contribute to a more motivated and productive workforce.

Improving Employee Financial Health Beyond Pay Raises

Yes, employee financial wellbeing plays a crucial role in the employer-worker relationship. In our Job Seeker Survey series, respondents consistently cited pay as their top motivator for accepting a new job. According to the most recent survey, 42 percent of job seekers identified pay as the top priority, representing the highest percentage recorded in any of our surveys.

While pay and job security are the top two motivators according to our surveys, the “potential for career advancement” is often the third most important motivator. Employers who clearly communicate and demonstrate paths for workers to take on new responsibilities can also find success in improving retention.

Wage Increases Lag Behind Inflation, Affecting Workforce Satisfaction

Our most recent survey highlighted a concerning trend where more workers feel worse about their financial situation and are less likely to receive raises. The data from our Job Seeker Survey series shows a clear decline in the percentage of workers receiving raises, which directly impacts their financial stability and satisfaction. As the economy and labor market become more predictable, employers are becoming more selective in their hiring processes, making it harder for workers to improve their financial situation.

To retain top talent, it is crucial for employers to recognize the importance of competitive compensation and other benefits. Additionally, creating a more attractive workplace by promoting social connections, offering opportunities for collaboration, and clearly communicating paths for career advancement can significantly improve employee retention and motivation. Addressing these issues proactively will not only enhance employee retention but also contribute to a more motivated and productive workforce.

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