Layoffs, Labor Shortages & the Broken Hiring Myth: What’s Really Going On in 2025
Tarryn Long
Apr 15
3 min read
If you’ve been paying attention to the job market lately, you’ve probably noticed a weird paradox: one day, companies are laying off thousands of employees. The next, they’re scrambling to fill critical roles they can’t seem to hire for. It’s a rollercoaster, and no one seems to know when (or if) the ride will end.
So, what’s actually going on? Is the hiring market broken?
The truth? It’s not broken, it’s misaligned.
But that gap between available talent and open roles? That’s fixable. Here’s how:
◉ The Layoff Whiplash: What the Numbers Say
In 2023 alone, over 240,000 tech workers were laid off globally (Layoffs.fyi), with major players like Meta, Google, and Amazon slashing jobs. In 2024, at least 95,667 workers at U.S.-based tech companies lost their jobs (Crunchbase). And as of mid-March 2025, more than 22,000 tech workers have already been laid off (TechCrunch).
Yet at the same time, sectors like healthcare and engineering are experiencing severe labor shortages. In the U.S., the healthcare industry is projected to have 3.2 million job openings by 2026 (U.S. Bureau of Labor Statistics). That’s not just a gap... it’s a gaping hole.
Even in tech, where layoffs dominate headlines, demand for specialized talent is still skyrocketing. Cybersecurity roles alone face a global shortage of over 3.5 million professionals (Cybersecurity Ventures). And in AI? If you have "machine learning" on your resume, recruiters are already in your inbox.
▶︎ Why Are We Seeing This Chaos?
● Economic Uncertainty and Policy Shifts
• Tariff Impacts: Recent tariffs have heightened concerns about economic growth and inflation, driving companies to adjust hiring and operational costs.
• Government Workforce Cuts: Federal cost-cutting initiatives have led to mass layoffs across public agencies, shaking confidence and creating ripple effects throughout the private sector.
● Technological Advancements and Skills Mismatch
• Rise of AI: Rapid adoption of AI has created demand for talent with highly specialized skills. Unfortunately, many laid-off workers don’t yet have those.
• Automation: Roles most susceptible to automation are disappearing, requiring fast and ongoing workforce reskilling.
● Evolving Employee Expectations
• Flexibility First: Workers want autonomy. Remote and hybrid models are non-negotiables for top talent. Employers who resist are losing out.
• Well-Being & Purpose: Employees are prioritizing mental health, meaningful work, and growth. Companies that ignore this risk high turnover and disengagement.
💡 So How Do We Fix It (or at least meet the market where it’s at)?
▻ Control What’s In Your Purview
The market may be chaotic, but your hiring process doesn’t have to be. You can’t control economic policy or global talent trends. But you can control how you define roles, evaluate candidates, and create an inclusive, efficient, and engaging experience.
▻ Hire Smarter, Not Harder
Panic-hiring and reactive layoffs are expensive. Long-term success comes from scalable strategies: upskill internally, hire for potential (not just pedigree), and align your hiring plans to the business roadmap, not quarterly panic.
▻ Modernize How You Source
Still relying on job boards? You’re behind. The best candidates aren’t applying — they’re working. That’s where strategic recruiters (like ITEOM 👋) bring real value. We source qualified, available, and interested talent fast.
▻ Rethink the Need to Freeze Hiring
Waiting for the "perfect hire" or holding off until budgets are finalized often costs more than having someone doing the work now. When teams are stretched too thin, productivity stalls, burnout increases, and momentum dies. Smart companies leverage fractional leaders, skilled contractors, and project-based specialists to stay agile and keep moving.
▻ Build for Belonging (Even Without a DEI Label)
Call it inclusive hiring, culture-first strategy, or representation goals, the label doesn’t matter. What matters is creating environments where people feel safe, seen, and set up to thrive. That’s what fuels innovation, retention, and impact.
The Bottom Line
The hiring market isn’t broken, it’s evolving. And evolution favors the companies that adapt.
If you're tired of the hiring headache, let’s talk.
ITEOM specializes in helping companies align with the right talent quickly and without the chaos.
Because hiring shouldn't feel like a never-ending game of musical chairs.
