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May 21, 2025 
4 min read
The latest labor market data reveals a compelling mix of strength and restraint. According to the iCIMS May Workforce Report, job openings are at a 12-month high, and applications continue to climb — yet hiring still lags behind. Employers are signaling demand but holding steady on headcount decisions, navigating today’s economic uncertainty with measured steps.
This month’s report explores:
Job openings are up 6% year over year, marking the strongest showing in the last 12 months. But this isn’t a hiring surge — it’s a deliberate build. Employers are posting jobs and collecting resumes, but many are waiting to pull the trigger on final decisions. That means talent acquisition (TA) teams must strike a careful balance: Act fast enough to engage top talent, but stay agile in a cautious hiring environment.
One of the clearest trends this month? Employers are increasingly hiring from within. Internal hires grew 6% year over year, outpacing external hires, which rose just 1%. It’s a smart strategy — internal mobility reduces hiring costs and boosts retention. But for external candidates, this adds another layer of competition to an already tight job market.
At the same time, external application volume jumped 18% from last year. Job seekers are casting a wide net, but companies are looking inward.
In a market full of job seekers, delivering a positive hiring experience is a true differentiator. iCIMS data shows that 96% of candidates say an efficient hiring process affects how they perceive an employer — and nearly half say it has a significant impact.
Broken communication, long delays, and vague timelines are dealbreakers. Today’s job seekers expect transparency, responsiveness, and clarity — especially when the volume of openings creates false signals about speed.
As AI tools become more common in the recruiting process, job seekers are open to the technology — but they still want humans making the big decisions. Only 1 in 5 respondents believe AI makes hiring truly fairer or more efficient. Most see AI as a support tool, not a replacement for human judgment.
That’s a signal for employers: transparency around how AI is used, and where people stay involved, will be key to building trust.
The next generation of workers is on the move — and they have high expectations. A full 78% of Gen Z respondents say they’re planning or considering a job change this year. They’re looking for career growth, strong employer brands, and seamless application experiences.
Online job boards are still their top channel (56%), but company career pages and networking platforms are gaining ground — especially when the employer brand is front and center.
Don’t underestimate older talent. Job seekers aged 45 and up made up 22% of all applicants in April. And they’re not just treading water — Baby Boomers and Gen Xers are prioritizing career development and internal mobility just as much as Gen Z. In fact, 54% of Gen X and 51% of Baby Boomers say career growth is one of their top job search priorities.
With inflation rising and retirement timelines shifting, seasoned professionals are staying active in the job market — and eager to climb the ladder, not descend it.
The May data shows a resilient labor market, but also a deliberate one. Employers are focused on long-term retention and internal growth, while candidates — across generations — are motivated, discerning, and ready to move. For TA teams, this is a moment to sharpen your strategy, streamline the experience, and clearly communicate how you’re hiring and who you’re looking for.
Download the full May Workforce Report.
Amy brings a knack for storytelling and strategy to her role at iCIMS. A longtime journalist and marketing consultant, she is on a mission to make her content sparkle with details and clarity.
As an essayist, Amy’s writing has appeared in The Washington Post and Family Circle magazine. When not writing, you can find her going for long hikes in the woods with her goldendoodle, working in her veggie garden or researching her next travel destination – which has included spots like Hong Kong, the Greek islands and Newfoundland.
