What to Expect in the Job Market: Trends and Advice for Job Seekers

The job market is constantly evolving, and in competitive fields, job seekers need smart strategies to stand out. Recently, headlines have been dominated by news of layoffs, particularly in the federal sector and tech industry—making it clear that the job market’s outlook can vary greatly depending on your field. Here’s what you need to know about current trends, career paths to avoid or be cautious with, and actionable steps to navigate this environment effectively.

Job Market Overview: Layoffs and New Opportunities

Layoffs have made headlines, particularly in government and tech roles. However, not all industries have been equally affected. While unemployment levels started strong in early 2025 (hovering at around 4% in January), job growth has slowed. The U.S. economy added an average of 143,000 jobs in January, compared to 166,000 jobs per month in 2024 and 216,000 jobs per month in 2023, according to the U.S. Bureau of Labor Statistics.

Why the slowdown?   Employers are becoming cautious, focusing more on retaining their current workforce than expanding. However, hiring trends differ significantly across industries. For example:

• Almost 75% of new jobs in 2024 were concentrated in   health care and social assistance,   government, and   leisure and hospitality.
• Meanwhile, tech hiring has slowed after years of booming growth. Blue-collar industries (like transportation and warehousing) also aren’t growing as quickly as they were pre-pandemic.

Some sectors are flourishing despite economic pressures—health care, for instance, is thriving due to an increasing need for skilled workers like nurses and health tech professionals. On the other hand, competitive fields like marketing, human resources, and communications remain challenging.

Struggles for New Graduates

For new graduates, the job market remains particularly sensitive. Optimism among employers is waning. A 2025 survey from Drexel University’s LeBow College of Business revealed that only 21% of employers rated the job market as "excellent" or "very good." Companies are streamlining resources under economic constraints, prioritizing selective hiring, and emphasizing internships or co-op programs to build future talent pipelines.

This means new grads will need to start their hunt earlier and adopt a clear, focused strategy—not wait until after graduation to begin.

What Jobs to Avoid: Fields at Risk from AI Automation

As you consider your career path, it's essential to recognize fields that may be significantly impacted by advancements in artificial intelligence (AI). While technology creates new opportunities, it also poses risks to certain roles. Here are some jobs that may face increased automation, making them less appealing choices for long-term career prospects:

1. Coding and Software Development

• Why It’s At Risk:   AI tools are increasingly capable of generating code, debugging, and even developing applications with minimal human input. Platforms like GitHub Copilot and other AI-based coding assistants can automate parts of the software development process, potentially reducing the demand for traditional coding positions.

2. Engineering Roles

• Why It’s At Risk:   Many engineering jobs, especially in design and simulation, are becoming partially automated through advanced software that can perform tasks like modeling, testing, and data analysis. AI can streamline repetitive tasks, meaning fewer engineers may be needed for basic functions while still requiring higher-level oversight.

3. Data Analysis

• Why It’s At Risk:   AI-driven analytics tools can process vast amounts of data far more quickly and accurately than a human analyst. As businesses increasingly rely on machine learning and data-driven decision-making, the need for entry-level data analysts may decline.

4. Customer Service

• Why It’s At Risk:   The rise of AI chatbots and virtual assistants means that many customer service interactions can now be handled without human agents. While complex issues will still require human touch, routine inquiries are being increasingly handled by automated systems.

5. Administrative Roles

• Why It’s At Risk:   Tasks traditionally performed by administrative assistants, such as scheduling, data entry, and document management, are being automated through sophisticated software. AI tools can automate these repetitive tasks, minimizing the need for human intervention.

Advice for Job Seekers in 2025

While the current job market is competitive, the following steps can help you rise above the crowd and improve your chances of success:

1. Start Early, Especially for College Students

If you’re still in school, plan ahead! Securing a   summer internship during your junior year   can put you on the fast track to landing a post-graduation job. For example, 95% of University of Wisconsin business students secured jobs within six months of graduating in 2024, thanks to internships and focused career planning. Over 60% were hired by the same companies where they interned.

Lesson: Use your college career center, connect with alumni, and prioritize internships for a smoother transition into the workforce.

2. Use AI to Boost—Not Replace—Your Job Applications

Although applying to a ton of jobs online can feel convenient, you won’t succeed by sending a generic résumé to every posting. Employers increasingly use AI tools to prescreen résumés for specific   keywords   and   skills listed in job descriptions —so tailoring your application is critical.

• Highlight   skill development   (not just job responsibilities) in your résumé.
• Use tools like   ChatGPT   to refine your résumé and cover letter. It can suggest improvements or even help you practice for interviews.

Pro Tip: Apply quickly when a job catches your eye—many companies only review applications within the first week of posting, says career expert Julia Pollak.

3. Network in Person

In today’s competitive job market, in-person connections remain invaluable. Attend industry conferences, join professional associations, and set up informational meetings with people in your desired field. Even reaching out through your college alumni network or former coworkers can open doors you might not find online.

Why it matters:   Networking can provide valuable insights about potential employers, which you can use to strengthen your résumé, cover letter, or interview strategy. It can also help you discover hidden opportunities not listed on traditional job boards.

4. Consider Growing Fields or New Certifications

If your current field has limited opportunities, consider pivoting to an industry with more growth. For example:

• Health care:   Getting a credential in health tech, nursing, or other health-related fields can lead to stable, lucrative opportunities.
• Skilled trades:   Roles like electricians, carpenters, and plumbers remain in high demand, as companies struggle to find experienced talent.

If you plan to stay in your current sector, explore   continuing education   or certifications to stand out. Employers are increasingly valuing hands-on expertise or specialized skills, even over years of experience in some cases.

Evolving Job Search Trends

Job seekers need to adapt to new hiring trends to compete effectively. For example, many companies are turning to internships or co-op programs as lower-risk ways to fill roles and assess potential hires. Additionally, AI tools are fundamentally reshaping how résumés are screened and how interviews are prepared for.

Even fields considered safe, like federal jobs, are seeing shifts. A hiring freeze in the federal government has led to reductions in workforce numbers and ripple effects across related industries reliant on government contracts and funding. This underscores the importance of flexibility, both in where you look for jobs and how you position yourself.

Key Takeaways

• The job market is   slower   than in previous years, with employers leaning towards   caution   in hiring.
• Health care   remains one of the most stable and growing industries, while competition in fields like marketing, HR, and tech is tougher.
• To stand out,   customize your applications   with keywords, focus on skill development, and use AI to refine your materials.
• Start networking   and explore new fields or certifications if your sector is struggling.
• New grads should focus on internships and proactive career planning for effective transitions into the workforce.

Ultimately, while the 2025 job market presents challenges, it also offers plenty of opportunities for candidates who adapt strategically and remain persistent. Whether through networking, leveraging AI, or pivoting to an in-demand field, the key to success is staying flexible and proactive.

Keep pushing forward—your next role is out there!