How 2024 Job Market Trends Will Impact Payroll Clients' Hiring In 2025

How Job Market Will Impact Payroll Clients

How the U.S. Job Market Will Impact Payroll Clients This Year

If your clients felt like hiring in 2024 was a bit unpredictable, they weren’t alone. The latest U.S. job market trends showed job postings dipped slightly while pay transparency surged. As a PEO or payroll company, understanding these trends can help you better support your clients in 2025, and, learn how it will affect your business. Let’s break down the highlights and what they mean for your clients’ hiring strategies this year.

Job Postings Slowed, But Hiring Continued

According to Aspen Tech Labs, total job postings dropped 2.5% from December 2023 to December 2024. While that might sound like a red flag, the labor market overall remained stable, with unemployment hovering around 4%.

For your clients, this dip in job postings likely means they had to be more selective with their hires, and open roles took longer to fill. The average time to fill a job stretched to 2.6 weeks—up 13% from the previous year. If your clients struggled with prolonged job openings, they weren’t alone. The question is, what can they do about it in 2025?

Pay Transparency Gains Momentum

Have your clients been asking about salary transparency laws? They should be. In 2024, 42.7% of job listings included salary details—a 35% jump from 2022 when only 7.8% of postings had pay info. With more states rolling out pay transparency laws, this trend isn’t going anywhere.

For your clients, this means two things: First, if they’re hiring in a state with pay transparency laws, compliance isn’t optional. Second, salary transparency is quickly becoming a hiring advantage. Job seekers now expect to see pay details up front, and companies that disclose salary ranges attract more applicants. Encouraging your clients to adapt could be a game-changer in helping them fill roles faster.

Booming and Slowing Industries to Watch

Not all industries were created equal in 2024. Some industries saw strong job growth:

Legal jobs: +33%
Real estate roles: +28%
Construction jobs: +17%
Insurance hiring: +16%
Banking jobs: +13%

Meanwhile, some industries saw declines:

Personal services: -25%
Pharmacy jobs: -14%
Warehouse jobs: -10%

Geographically, Hawaii led the pack with a 13% increase in job listings, while Maine, Kentucky, and Utah saw declines of about 7%.

If your clients are in growth industries, they may need to step up their hiring game to compete for talent. If they’re in industries that slowed down, they might be looking for strategies to retain their workforce and keep turnover low.

Wages Growth Was Uneven

Wages followed an interesting pattern in 2024. Full-time workers saw an 8.7% increase in median wages, reaching $60,840. However, part-time workers only saw a 2.2% bump, with median pay increasing from $17.50 to $17.89 per hour—falling short of inflation.

This is a crucial insight for your clients, especially those hiring hourly workers. If they’re struggling to attract talent, wage stagnation could be part of the problem. Guiding them to assess their pay rates compared to industry trends may help them stay competitive.

What This Means for Your Clients in 2025

So, what should your clients take away from all this?

➡ Job postings are staying open longer. Encouraging them to streamline their hiring process can make a big impact. Whether it’s using tools like Juvo Jobs to connect with local talent or refining their interview process, a faster, more efficient hiring strategy will be key.

➡ Salary transparency is becoming the norm. Clients who embrace pay transparency may find it easier to attract qualified applicants. If they’re reluctant, helping them see the hiring benefits (not just the compliance angle) could be a winning approach.

➡ Industry trends matter. If they’re hiring in a growth industry, competition is fierce. If they’re in a shrinking sector, they need strategies to retain their workforce and avoid unnecessary turnover costs.

The job market is always changing, but one thing stays the same: businesses that stay informed and adapt quickly come out ahead. As a payroll provider or PEO, you’re in a prime position to help your clients navigate these shifts successfully.

Looking for more ways to support your clients in hiring and retention? Partner with Juvo Jobs to provide real-time hiring solutions that fit seamlessly into their workforce strategy. Let’s make 2025 a strong year for your clients—and for you!

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