US hiring managers approach 2025 with a mix of optimism and caution, according to a survey of 1,001 hiring managers released Feb. 12 by Express Employment Professionals-Harris Poll.

More than half of hiring managers, 52%, reported feeling optimistic about the year ahead, while 46% expressed hope and 45% confidence in their companies’ outlook.

However, finding qualified candidates remains a top challenge, cited by 45% of respondents. Additionally, 37% identified artificial intelligence as a concern, including leveraging AI to expand candidate reach, implementing AI for candidate assessment and processing job applications.

While 36% of hiring managers reported that their companies lack the tools to find the right candidates for their job openings, 32% reported having unfilled positions, an improvement from 38% in the first half of 2024 and 42% a year ago.

Among those with open positions in the past year, 40% of hiring managers struggled to identify suitable candidates and 44% noted that hiring has become more challenging than five years ago.

Top factors preventing companies from filling open positions include:

• Lack applicants with relevant experience, 39%
• Shortage of applicants with hard skills, 38%
• Deficit of applicants with soft skills, 33%
• General lack of applicants, 33%

Another finding: Extended unemployment is contributing to a skills gap. Sixty-four percent of hiring managers reported prolonged unemployment leads to a deterioration of both hard and soft skills, particularly among young adults between ages 18 and 26.

“While the challenges are significant, the resilience and adaptability of companies will be the driving force behind navigating this evolving landscape,” Express Employment International CEO Bill Stoller said in a press release. “By embracing technology and prioritizing skill development, they can create a more agile and capable workforce. This proactive approach will address current challenges and position companies for long-term success in an ever-changing market.”

The poll was conducted between Nov. 11 and Nov. 26, 2024.