Anticipation comes despite signs of a softening employment market
Nearly two in three HR leaders in the United States are anticipating increased talent competition despite signs of a softening labor market, according to a new report.
A Gartner survey among over 100 HR leaders in April 2025 found that 61% anticipate further competition for talent, particularly for front-line employees, due to the tariff policies of the Trump administration.
The findings come despite signs of a softening labor market, according to a separate Gartner poll among nearly 3,000 job candidates from January to March.
It found that 35% of candidates backed out after accepting a job offer, down from the previous 48% in the same period last year.
The report also found that only 44% of job candidates received multiple job offers in their most recent hiring process, down from 51% in the first quarter of 2024.
"We are seeing signs of a softening labour market, with fewer candidates getting multiple offers or backing out after accepting a job," said Caroline Ogawa, Director, Research in the Gartner HR practice, in a statement.
Ogawa noted that candidates are getting more selective about the jobs they pursue despite challenging conditions, which can make it harder for organisations to attract talent.
Getting higher compensation remains the top priority for jobseekers, as 53% of them cited it as the top offer decision driver in the first quarter of 2025.
Having more opportunities for career growth came in second, as cited by 47% of the respondents.
"When candidates do accept a new offer, they are prioritising compensation and career growth. Organisations need to show they can help candidates get ahead, with either an impressive salary increase or career opportunities," Ogawa said.
Other decision drivers for jobseekers include:
"As organisations continue to navigate through the unpredictable business environment, HR leaders must challenge assumptions about how labour market competitiveness tracks with economic cycles and pay close attention to actual candidate behaviour,” said Dion Love, Vice President, Advisory in the Gartner HR Practice, in a statement.
