Job Seeker Confidence Rises as Market Shows Signs of Growth
February 12, 2025 – Despite ongoing challenges and frustrations in the job market, job seekers and employees remain resilient, prioritizing growth opportunities by pursuing roles or turning to nontraditional arrangements like contract and freelance work to meet their needs and career goals. The Vaco Talent Pulse Report measures employee and job seeker confidence levels in three core areas—job security, financial status, and career advancement. The Q1 2025 report found improved levels of confidence across all three categories to start the new year.
In the first quarter of 2025, respondents expressed increased confidence about their job security compared to the previous quarter. More than 40 percent of those Vaco surveyed reported extreme confidence in their ability to get and hold a job, a two percent increase from Q4 2024. Nearly 30 percent of respondents said they are not confident in their ability to get and hold a job, a three percent decrease from Q4 2024. This also represents a two percent increase year-over-year from Q1 2024.
“Job seekers are experiencing renewed confidence as the job market offers signs of recovery and growth,” said Kevin Witt, VP. “Positive momentum in both the U.S. and Canada, driven by strong job reports and lower unemployment, is prompting employers to revive key projects and roles that were previously on pause. As opportunities evolve, job seekers have demonstrated remarkable adaptability, at times pivoting to a career change or contract and freelance work to reach their goals.”
“After extended hesitation, organizations are starting to reallocate resources to implement tools and staff critical projects that have been on hold for months,” said Jim Dimovski, senior vice president and executive partner. “What were once nice to haves are now must haves as they look for ways to stay competitive, especially with renewed optimism across certain economic indicators. For job seekers, job hunting itself is a full-time job and the effort you put into it makes a huge difference.”
“Prioritize continuous learning—whether it’s building your AI skills through prompt training or researching how technology trends are impacting your field—and pay close attention to where leaders in industries and markets are investing,” Mr. Dimovski said. “It’s equally important to have a diverse approach to your job search—online applications alone aren’t going to cut it. Find local or digital networking events to attend and make direct outreach part of your daily routine. The more proactive and intentional you are in your search, the faster opportunities will come your way.”
Financial Status
In the first quarter of 2025, respondents seemed more positive about their ability to improve their financial situation compared to the previous quarter. Nearly 45 percent of those Vaco surveyed reported being extremely confident they can boost their financial standing over the next six months, up three percent from Q4 2024. Meanwhile, 25 percent of respondents said they aren’t confident in their ability to improve their financial situation, a five percent decrease quarter-over-quarter. This marks the second lowest percentage Vaco has recorded since beginning the Talent Pulse Report roughly two years ago.
Related: Predicting Talent Acquisition Trends for 2025
“Workforce sentiments around improving their financial situation are encouraging to start the year,” said Brian Herczeg, managing partner. “In 2024, large parts of the economy experienced challenges that hit the job market hard, making it difficult for people to get ahead financially—and adding inflation into the mix only made things worse.”
Executive Search in 2024: Challenges, Trends, and Hopes for a Hiring Resurgence in 2025
For many search firms in almost all industry segments, 2024 has been a tough year. There are many reasons for the recent downturn, and some firms have experienced a dip in revenues for even longer, according to Tim Tolan, founder, chairman, and managing partner of The Tolan Group. “Lots of changes are on the horizon for 2025 on the hiring front, and search firms are waiting with bated breath while hiring decisions are on hold, and draft fee agreements are (still) sitting in DocuSign waiting to be signed,” he said. “Decisions are dragging, as are active search engagements, as hiring managers and leaders struggle to make hiring decisions in the environment, we are all trying to navigate.”
In the Hunt Scanlon 2024 Executive Recruiting State of the Industry Report, the numbers reflected a double-digit downturn in demand for executive recruiting, with the private equity sector being the most affected. “We’ve seen and experienced that firsthand, but we feel positive changes are on the horizon,” Mr. Tolan said.
“However, the increase in confidence from Q4 2024 indicates a growing optimism in the U.S. economy’s ability to create new job opportunities,” Mr. Herczeg said. “When opportunities grow, so does demand for talent, and when demand goes up, so do prices. In this case, an increased demand for talent means the price that goes up will be in the form of salaries and wages, which should lead to new and exciting opportunities for a lot of people in the workforce.”
Career Advancement
In the first quarter of 2025, respondents expressed increased confidence about advancing in their careers over the next year. Close to 50 percent of those surveyed reported being extremely confident, up three percent from Q4 2024. About 25 percent of respondents said they aren’t confident in their ability to advance in their careers, a four percent decrease from the previous quarter. Though this quarter’s number is higher than the 20 percent reported in Q1 2024, it still represents the second lowest percentage recorded since Vaco began the Talent Pulse Report.
Related: Hiring Confidence Slows as Employers Steer Economic Headwinds
“Recent confidence levels around career advancement suggest professionals are more bullish about opportunities at their current workplace and growth prospects elsewhere,” said Matt Frankel, managing partner. “This is primarily driven by a more stable job market and increased economic optimism. In 2025, it’s important that companies continue to invest in their employees, empowering them to drive their own career growth with support through mentorship, training, and engagement opportunities to keep them satisfied.
“As companies look to invest in new talent, implementing a smooth, swift, and engaging hiring process, offering competitive compensation packages, and prioritizing candidate experience and flexibility will be critical,” Mr. Frankel said. “And workers must meet employers half way. It’s important for candidates to demonstrate agility by investing in themselves and ensuring that they are continuously learning and evolving to set themselves up for success, especially as technology, like AI, and other factors continue to disrupt the market.”
The Q1 2025 Vaco Talent Pulse Report reflects increased workforce confidence across all the key areas the firm measured. “As the workforce enters 2025 with renewed optimism, the rise of nontraditional arrangements, like contract and freelance work, showcases workers’ resilience in finding opportunities that fit their career goals and needs,” the Vaco report said.
“Job seekers must demonstrate agility, prioritize continuous learning—particularly in emerging fields like AI—and remain flexible in adapting their skills,” said Kyle Allen, executive vice president of sales and recruiting at Vaco. “By doing so, they position themselves as proactive, future-ready candidates in an increasingly competitive job market.”
“Employers are focused on their strategies to retain top talent, as well,” Mr. Allen said. “These days, offering competitive compensation is not enough,” he said. “Savvy job seekers seek companies that offer robust career development programs with clear paths for advancement, alongside initiatives that consistently recognize and reward exceptional performance.”
Related: Why Soft Skills Still Rule the C-Suite in the Age of AI
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
