US Job Market: Slower Growth, Wage Gains, and AI-Driven Hiring Trends

143000

The US job market added 143,000 jobs in January, falling short of the expected 169,000, while unemployment dropped to 4%, the lowest since May. Wage growth reached 4.1% year-over-year, partly driven by 21 states increasing minimum wages, benefiting 9 million workers. Job gains for November and December were revised up by a total of 100,000, but overall job additions for 2023-24 were cut by 600,000. Investors now turn their attention to next week's Consumer Price Index report for inflation trends.

4.1%

U.S. job growth slowed in January, impacted by wildfires in California (25,000 jobs lost) and cold weather (15,000 jobs lost). The unemployment rate remained at 4.1%, while average hourly earnings rose 0.3% (up 3.8% year-over-year). Economists expect job growth to moderate further in early 2025, with concerns over immigration policies and potential job cuts in government sectors.

73%

Job market showing signs of improvement—53% of 1,500 workers surveyed by ZipRecruiter were actively recruited for their new jobs, up from 29% in Q3 2024. 46% are very satisfied, compared to 39% last quarter. 73% got a pay raise after switching (vs. 57% in Q3), and 31% received a counter-offer from their previous employer (vs. 17% in Q3). 43% got a sign-on bonus, nearly 3.5x higher than the 12% last quarter. However, 31% had job offers rescinded, more than double previous quarters.

4.39B

The US online recruitment market is set to grow by $4.39 billion from 2025-2029, with a 7.3% CAGR, driven by AI-powered hiring innovations. AI tools streamline candidate searches, automate screening, and improve hiring decisions, boosting efficiency. However, rising competition may impact profitability. Major players include Microsoft, ZipRecruiter, Randstad, and CareerBuilder, while AI-driven recruitment trends like chatbots and automated screening continue to reshape the industry.

$1.8B

More companies are adding menopause benefits, with 18% offering or planning to offer them in 2025, up from 15% in 2024 (Mercer). Menopause costs $1.8 billion annually in lost work time, with 11% of women missing work and 13% facing adverse work outcomes (Mayo Clinic). Companies like Sun Life and Progyny are expanding support as demand grows, with 40% of new clients opting for menopause benefits.