Q1 2025
Talent Pulse Report
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.
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.
Q1 2025
Talent Pulse Report
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.
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.
A look at the unemployment situation
U.S. UNEMPLOYMENT RATE
In the U.S., the labor market has some much-needed momentum heading into 2025. The unemployment rate remained relatively stable during Q4 2024, ending the year at 4.1%. Meanwhile, the U.S. economy added 256,000 jobs in December, beating expectations for the largest increase since March 2024.
CANADA UNEMPLOYMENT RATE
Canada ended 2024 with some positive momentum too. After the unemployment rate jumped from 6.5% in October to 6.8% in November, it dropped to 6.7% in December to close out the year. The Canadian economy added 91,000 jobs in December, the largest amount since January 2023.
A look at the unemployment situation
U.S. UNEMPLOYMENT RATE
In the U.S., the labor market has some much-needed momentum heading into 2025. The unemployment rate remained relatively stable during Q4 2024, ending the year at 4.1%. Meanwhile, the U.S. economy added 256,000 jobs in December, beating expectations for the largest increase since March 2024.
CANADA UNEMPLOYMENT RATE
Canada ended 2024 with some positive momentum too. After the unemployment rate jumped from 6.5% in October to 6.8% in November, it dropped to 6.7% in December to close out the year. The Canadian economy added 91,000 jobs in December, the largest amount since January 2023.
Job security
In the first quarter of 2025, respondents expressed increased confidence about their job security compared to the previous quarter. More than 40% of those we surveyed reported extreme confidence in their ability to get and hold a job, a 2% increase from Q4 2024.
Nearly 30% of respondents said they are not confident in their ability to get and hold a job, a 3% decrease from Q4 2024. This also represents a 2% increase year-over-year from Q1 2024.
Job security
In the first quarter of 2025, respondents expressed increased confidence about their job security compared to the previous quarter. More than 40% of those we surveyed reported extreme confidence in their ability to get and hold a job, a 2% increase from Q4 2024.
Nearly 30% of respondents said they are not confident in their ability to get and hold a job, a 3% decrease from Q4 2024. This also represents a 2% increase year-over-year from Q1 2024.
How confident are you in your ability to get and hold a job right now?
Source: Vaco Global LinkedIn Poll
EXTREMELY CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
SOMEWHAT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
NOT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
How confident are you in your ability to get and hold a job right now?
Source: Vaco Global LinkedIn Poll
EXTREMELY CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
SOMEWHAT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
NOT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Jim Dimovski
Senior Vice President and Executive Partner
"After extended hesitation, organizations are starting to reallocate resources to implement tools and staff critical projects that have been on hold for months. 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. 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% of those surveyed reported being extremely confident they can boost their financial standing over the next 6 months, up 3% from Q4 2024.
Meanwhile, 25% of respondents said they aren’t confident in their ability to improve their financial situation, a 5% decrease quarter-over-quarter. This marks the second lowest percentage we’ve recorded since beginning the Talent Pulse Report roughly two years ago.
How confident are you in your ability to improve your financial situation (either through a raise or by obtaining a new job) in the next 6 months?
Source: Vaco Global LinkedIn Poll
EXTREMELY CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
SOMEWHAT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
NOT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
How confident are you in your ability to improve your financial situation (either through a raise or by obtaining a new job) in the next 6 months?
Source: Vaco Global LinkedIn Poll
EXTREMELY CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
SOMEWHAT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
NOT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Brian Herczeg
Managing Partner
“Workforce sentiments around improving their financial situation are encouraging to start the year. 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.
However, the increase in confidence from Q4 2024 indicates a growing optimism in the US economy’s ability to create new job opportunities. 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% of those surveyed reported being extremely confident, up 3% from Q4 2024.
About 25% of respondents said they aren’t confident in their ability to advance in their careers, a 4% decrease from the previous quarter. Though this quarter’s number is higher than the 20% reported in Q1 2024, it still represents the second lowest percentage recorded since we began the Talent Pulse Report.
How confident are you in your ability to advance in your career in the next year?
Source: Vaco Global LinkedIn Poll
EXTREMELY CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
SOMEWHAT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
NOT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
How confident are you in your ability to advance in your career in the next year?
Source: Vaco Global LinkedIn Poll
EXTREMELY CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
SOMEWHAT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
NOT CONFIDENT
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Matt Frankel
Managing Partner
"Recent confidence levels around career advancement suggest professionals are more bullish about opportunities at their current workplace and growth prospects elsewhere. 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. 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.”
New year, new you? Are you actively looking for a new job?
Source: Vaco Global LinkedIn Poll
YES, I AM READY FOR CHANGE
PASSIVELY LOOKING
HAPPY WHERE I AM
New year, new you? Are you actively looking for a new job?
Source: Vaco Global LinkedIn Poll
YES, I AM READY FOR CHANGE
PASSIVELY LOOKING
HAPPY WHERE I AM
Looking ahead
The Q1 2025 Vaco Talent Pulse Report reflects increased workforce confidence across all the key areas we 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.
A message to those job searching:
Landing an interview is an exciting moment in your job search. But are you preparing yourself properly? Vaco’s Candidate Interview Guide is your go-to resource to master the art of the interview and take control of your career.
A message to those hiring:
Exit interviews can be a game-changer for your company. They’re your chance to figure out what’s working and what’s not. By asking the right questions and following through on their feedback, you can build a workplace that attracts and retains top talent.
The speed of change requires the talent of people. Vaco solves for both.
With expertise in accounting and finance, IT and digital, and HR and operations, Vaco delivers critical talent solutions to clients by providing contract staffing, managed services, direct-hire staffing, and executive search services. Aside from Vaco, the Vaco Holdings collective of brands includes MorganFranklin Consulting, a finance, technology, and business advisory firm; Pivot Point Consulting, a Best in KLAS healthcare IT consulting leader; Focus Search Partners, a retained and interim executive search practice; and BUILT, a digital solutions company specializing in software, cloud, data, and AI solutions. In addition to being named to Inc. magazine’s list of the fastest-growing private companies for the past 17 years, Vaco was also named to Forbes’ 2018–2024 lists of America’s Best Recruiting Firms as well as the 2017–2024 lists of Largest Staffing Firms Globally by Staffing Industry Analysts. Vaco annually ranks as one of the Best Staffing Firms to Work For.
For more information, visit vaco.com.
Methodology
We administered poll questions to inform the Q1 2025 Vaco Talent Pulse Report through Vaco’s LinkedIn company profile on December 20, 2024, December 27, 2024, and January 3, 2025. Results and summaries are based on 13,080 votes cast across the three polls. A highlight of follower demographics includes those from across the U.S. and Canada working in engineering, technology, accounting, finance, human resources, and operations. Most people represented are either senior, manager, director, VP, or entry-level.
For questions on methodology, please contact Jamie Carpen, Senior Manager, Public Relations at Vaco: jcarpen@vaco.com.
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