As 2024 comes to a close, the U.S. labor market has remained largely stable despite economic uncertainties and challenges posed by this year’s election. We are cautiously optimistic as we head into 2025 that organizations will continue to add talent and start prioritizing business initiatives that may have gotten deferred or delayed over the last year. The economic indicators suggest a strong start to hiring in the new year. In the third quarter, the unemployment rate remained steady at 4.1%. High consumer spending contributed to 2.8% GDP growth during that same time period, driving demand for goods and services. The same was true for talent. Temporary staffing saw a surge in November, recording the highest levels of hours worked this year.

As these indicators improve, workforce trends are evolving, and they’re largely being led by Gen Z. Organizations are focusing on continuous learning, mentorship, and hybrid work models to attract and retain talent across generations. Meanwhile, well-being initiatives like access to flexible benefits are helping companies create more inclusive, engaged workplaces.

In 2025, we expect many companies will focus on getting the most out of their existing workforce through services like business process outsourcing and managed services. These solutions allow organizations to delegate entire departments—such as finance and IT—to a trusted partner and streamline operations, reduce costs, and improve efficiency. By using specialized talent, advanced technology, and industry best practices, companies can increase scalability, drive innovation, boost productivity, and create growth through non-core parts of their businesses.

Our experience this year has reinforced the importance of focusing on local relationships and supporting those with both consultative and global talent solutions. The new year looks bright for the labor market and we look forward to what 2025 has in store for the national and global economy.