The Job Market is Becoming More Precarious for Job Seekers, New Research from LinkedIn Reveals
The job market is becoming increasingly challenging for job seekers, with more than a third of them applying to more jobs than ever before, but hearing back less. According to new research from LinkedIn, one in five job seekers who were searching for a job last year are still looking in 2025, and 26 percent said the job market is so challenging they don’t plan to job hunt at all this year.
The research also revealed that over half of those surveyed are open to taking on a role in a new industry, reflecting a decrease in the employee-centric job market. Many job seekers are applying to a large number of jobs, but hearing back from employers is not as easy as they thought it would be.
“I’d say it’s not surprising that with a higher cost of living and many employee roles facing increased responsibilities, so many are eager to apply for new positions, hoping it will lead to better pay and less stress,” said Alex Beene, a financial literacy instructor. “However, hearing back from an employer isn’t as easy as many think it would be. The problem is that many applicants end up sending out the same resume and cover letter over and over again.”
HR consultant Bryan Driscoll agrees that job seekers not hearing back is a failure of the system and modern hiring processes. “Companies have leaned heavily into automation and AI to screen resumes, often filtering out qualified candidates before a human ever sees their application. This is inefficient and demoralizing. We’re telling job seekers they need to put in more effort while simultaneously creating systems that disregard that effort entirely.”
LinkedIn’s career expert, Catherine Fisher, suggests that job seekers apply strategically, focusing on roles that match their skillset to stand out. “Job seekers are applying to more roles than ever, trying to break through the competitive job market. Instead of mass applying, they should be more strategic, focusing on roles that match their skillset to stand out.”
Michael Ryan, a finance expert, points out the “precision paradox” created by the widespread adoption of AI screening tools. “These tools help employers filter applications more efficiently, but often screen out qualified candidates who don’t match exact keyword criteria.”
As the job market becomes more challenging, some experts warn that job seekers may stop looking for work altogether, leading to long-term unemployment and lower workforce participation. “If job seekers can’t find stable employment, consumer spending slows down,” said Bryan Driscoll. “Add to that the fact that 26 percent of people don’t even plan to look for work this year, and you have a labor force increasingly disengaged, not because they lack motivation, but because the system keeps beating them down.”