'There was a significant decrease in both hiring and turnover globally, with hiring reaching its lowest point in five years'
Hiring registered a monthly and annual decline in December 2024, according to the latest Workforce Insights from BambooHR.
The data revealed a 22% monthly drop in global hiring in December, as well as a 10% year-over-year decrease from December 2023.
"In December 2024, there was a significant decrease in both hiring and turnover globally, with hiring reaching its lowest point in five years," the report read.
Source: BambooHR
The hiring data in December 2024 falls in line with the hiring slowdown usually reported by year-end, which is attributed to holiday season disruptions.
Alanna Rodriguez, HR and compliance analyst, added that many companies slow their hiring efforts during December amid budget revisions and as year-end planning becomes a priority.
"Companies are often finalising their budgets and strategizing for the year ahead. This can delay hiring decisions as organisations assess their financial resources and determine staffing needs for the coming year," Rodriguez said on a LinkedIn post.
Companies are also more likely to prioritise internal promotions and transfers in December before opening new roles to external candidates.
"This internal focus can make it seem like there are fewer opportunities available."
The slowdown in hiring is also reflected in BambooHR's Workforce Insights, where job openings declined by 10% from November to December 2024.
Turnover also went down by eight per cent during the same period, and was also down 19% from December 2023, according to the report.
While hiring may have slowed down by year-end, organisations and jobseekers alike can likely expect recruitment to pick up by the start of 2025.
In fact, data from ManpowerGroup revealed a 25% global net employment outlook for the first quarter of 2025.
It found that 41% of employers are anticipating an increase in hiring, 40% are expecting no changes, and only 16% are expecting a decrease in headcount.
Source: ManpowerGroup
Jonas Prising, ManpowerGroup chair and CEO, said their findings indicate that employers are holding to talent they have, with muted hiring planned for the quarter ahead.
"Employers know a skilled and adaptable workforce is key to navigating transformation, and many are prioritising hiring and retaining people with in-demand, flexible skills that can flex to where demand sits," he said in a statement.