Some of the world’s largest employers are planning to scale back hiring in 2025 as they focus on raising salaries and upskilling their existing workforce, according to a new report.
Researchers surveyed more than 100 senior talent acquisition executives globally, including those from industries such as automotive, technology, and professional services.
It revealed a significant shift in priorities around hiring this year, driven principally by shifting market conditions and the influence of technology, including AI.
Cameron: efficiencies of scale
The Hiring Trends Report 2025, from candidate screening platform Willo shows a 48% decline in companies planning substantial workforce growth compared to 2024. Meanwhile, there has been a 33% increase in employers intending to boost salaries and a striking 78% rise in those prioritising upskilling existing staff.
The findings come as the Government announces a sweeping action plan to increase 20-fold the amount of AI computing power under public control by 2030 and deploy AI for everything from spotting potholes to freeing up teachers to teach.
It showed the role of artificial intelligence (AI) in recruitment remains a focal point, though not without controversy. More than half of organisations plan to change their AI capabilities in 2025, with 10% saying they will replace their recruitment AI tools completely.
However, scepticism is growing. The number of leaders who believe AI should play no role in hiring more than doubled in 2024, reaching 9%.
Despite this, AI adoption continues to rise. Currently, 65% of organisations use AI in recruitment, although this falls short of the 80% predicted in last year’s survey.
One notable finding is that nearly a fifth (18%) of hiring managers are using AI to help make final hiring decisions, a practice that has drawn criticism.
Euan Cameron, co-founder and CEO of Willo, said: “While AI offers incredible efficiencies at scale, its use in making final hiring decisions is surprising and concerning. The final stage of the hiring process is where human judgement is most valuable. I would question the wisdom in placing such significant business decisions in the hands of an algorithm. ”
AI is proving effective in other areas, such as assessing candidate abilities. Nearly 40% of firms use it to evaluate skills, helping recruiters conduct fairer and more consistent assessments. By automating repetitive tasks, such as resume reviews, AI reduces bias and ensures each candidate receives a fair chance.
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The full Hiring Trends Report 2025 is available here.
