By Ellie Santonato
There is a new labor trend for job seekers to know as we begin 2025. Since June 2024, the Bureau of Labor Statistics (BLS) has reported that the quit rate has declined significantly in the United States, dropping to a low 2.2%. In the state of Illinois, the average quit rate is 1.9%. However, the Bureau of Labor Statistics (BLS) reported its first increase in resignations in October 2024, when the number of quits increased to 3.3 million (+228,000). Overall, leaving one’s job has decreased significantly, averaging 308,000 less than in 2023. This is much less than in late 2021 and early 2022, known in the labor market as the Great Resignation. Overall, this is the lowest resignation rate that has fallen in the past three years.
What do employers think? Even though the labor market remains strong overall, employers rate it worse than last year. According to the National Association of Colleges and Employers (NACE) Job Outlook 2025 report, slightly more employers rated the job market as fair (21.8% to 36.2%) and poor (1.6% to 3.4%) then in 2023.
With the Great Resignation and job switching clearly behind job seekers and their employers, what does what labor analysts call the “Big Stay” or the “Great Stay” mean for Gen Z and job seekers overall in 2025?
Unfortunately, the “Big Stay” does not mean employers and job seekers are happy in their roles and organizations. According to a Glassdoor study released in November 2024, roughly 65% of workers today report feeling “stuck” in their current roles. Many of these feelings come from job seekers ghosted by recruiters and hiring managers and inadequate openings with accurate compensation. Some job seekers’ reasons for holding on to their current positions are much more nuanced than the lack of available opportunities, according to a Forbes article from June 2024. Employees mention the continued increase in inflation rates, interests, and cost of living coupled with domestic and international political turmoil; staying in one’s current role feels safer.
Additionally, many Baby Boomers report needing more savings for retirement due to rising inflation rates, interest rates, and the cost of living. They have been interested in working until 65 to avoid boredom and adequately build a financial safety net. The lack of retirement of Baby Boomers from the workforce results in fewer Gen X and Millennials moving into upper management positions.
Gen X and Millennials make up the majority of middle management. Given their employers’ lack of vertical growth opportunities, many labor analysts predict that 2025 will see a ‘manager crash’ as burnout and a lack of support reach a breaking point. Organizations will likely not fill the positions but instead restructure to save money on salary retention costs for the remaining employees. Those not leaving their positions will face growing resident costs for their organization, resulting in more “quiet quitting” throughout 2025.
What does this all mean for Gen Z Job Seekers? These young workers, particularly those aged 20-24, are experiencing difficulty getting their professional start after graduation. As mentioned previously, organizations need to hire or promote individuals. Still, they are not, which is punishing Gen Z with a lack of opportunities and setbacks in their overall professional development. Glassdoor reports that 17% of workers who changed employers indicated their pay declined in 2024, a trend 2025 job seekers should be prepared to continue.
However, there is some positive news for job seekers in Illinois and Minnesota; starting January 1, 2025, the states will require certain employers to disclose salary ranges and benefits in job postings.
And some more good news for Gen Z: As a professional generation, they will make up one in ten managers by 2025! Gen Z’s management style has shifted slightly in the culture of work and organizations, as they have noticed how their Millennial coworkers have been treated. Gen Z’s management style emphasizes the importance of work-life balance and empathy with their staff.
What Should Gen Z Job Seekers Do?
- Maximize Internship Opportunities: Undergraduate students should start looking for and applying for internships. January through March is the best time to apply for summer internships in most industries. Internships are a great way to gain hands-on experience, build social and cultural capital, and develop a professional community, which could lead to mentorship opportunities in the future.
- Focus on Skill Diversification: Identify in-demand skills within your field and ensure that your experience and training match the industry’s direction. According to NACE, over half of employers surveyed use skills-based hiring practices always or most of the time. Interviewing and screening are when most of the use occurs.
- Build a Personal Brand: Establish a professional online presence by conversing with industry professionals and thought leaders. Recruiters and hiring managers will see your engagement and even bring you opportunities directly. Building an online brand allows you to work in different or adjacent industries. Being online will introduce the job seeker to industries or sectors experiencing growth.
- Leverage Your Network: Gen Z students are tired of hearing this advice, but it can make a difference during the job search process. Yes, it matters what you know, but only 47% of employers screen young professionals for their GPA when reviewing resumes. This means that who you know is just as important. Using your university’s Alumni Network and virtual platforms like LinkedIn to connect with industry professionals for informational interviews or even more casual coffee chats can provide valuable insights into available opportunities and industry trends.
- Seek Mentorship: Find mentors who can offer guidance and help navigate the complexities of beginning a career during challenging times. Only some people successful in their field understand what it takes to search for a job when opportunities are scarce, so finding the right fit is essential in terms of the type of job you are seeking and the knowledge of how to help you get there. It is always a good idea to start with who you know.
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