The State of the Job Search in 2025: AI, Cover Letter Comeback, and What Caused an 11X Increase in Interview Rate
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Introduction
The job search process can often feel like navigating a maze in the dark. Job seekers are left wondering what hiring managers are looking for, how recruiters select candidates, and what strategies are truly effective. The frustration is palpable; the process lacks transparency.
In short, the job search often feels like throwing applications into a black hole.
This report, The State of the Job Search, aims to help job seekers. It offers data-driven insights to illuminate the current hiring landscape. This will help job seekers know what to do to improve their chances of getting an interview.
We created this report by using Jobscan’s unique database of millions of resumes, job descriptions, and job applications. It pulls back the curtain on the realities of modern job searching. Here’s what you’ll find in this report:
- Key job seeker trends.
We explore common challenges, changing strategies, and feelings about the job search experience.
- Applicant tracking system usage.
We explore how common applicant tracking systems (ATS) are and how they are used.
- Keys to success.
By examining millions of job applications, we discover what helps some candidates land interviews and why others miss out.
- In-demand skills.
We pinpoint the top skills employers want now based on a thorough look at millions of job listings.
Our goal is to empower job seekers with the knowledge they need to succeed. This report offers a roadmap for job seekers looking to gain a competitive edge in 2025 and beyond.
Job search trends: navigating a challenging landscape
We surveyed 442 job seekers to better understand their challenges and opportunities. Let’s dive into the key findings from this study.
The survey results paint a stark picture, underscoring the anxieties felt by many navigating the job search process.
Confidence levels are low. Less than 16% of job seekers feel sure they can find a role that meets their needs. Why? A surprising 44% of respondents said they didn’t get any interviews in the previous month.
Put simply, the job market is tough in 2025.
If you’re feeling like you’re not getting as many opportunities as you should, you’re not alone.
Challenges
Job seekers face two key challenges. First, 30% of respondents said it’s hard to find jobs that suit their skills and qualifications. Second, 26% of respondents said it takes a lot of time to tailor their resume for each application.
Why does it take so long to create a tailored resume? There are two challenges that make this process harder: 1) Making sure their resume is compatible with applicant tracking systems (ATS) (24% of respondents); 2) balancing being concise and comprehensive (22% of respondents).
On top of those challenges, the job search journey can be a long one. About 32% of our survey respondents have been looking for a job for over six months. This shows the persistence needed in today’s job market.
Despite these challenges, job seekers are proactively taking steps to improve their job prospects. Over half of the respondents have taken online courses or are actively upskilling. This shows respondents are dedicated to improving their skills and staying competitive.
Even people with advanced degrees see the need for ongoing learning. In fact, over 85% of those surveyed have a degree but many are still taking courses to improve their skills.
Key takeaways for job seekers
- The job search is highly competitive: With 44% of job seekers not landing a single interview in the past month, it’s clear that competition is fierce.
- Persistence is key: With many job seekers searching for over six months, it’s important to stay motivated and adaptable.
- Continuous learning is essential: Upskilling and online courses are crucial for staying competitive, even for those with advanced degrees.
Applicant tracking system usage: dominating the hiring landscape
Applicant tracking systems (ATS) are now commonplace in hiring, especially for large companies. Our latest study shows that 98.4% of Fortune 500 companies use an ATS to manage their hiring process. That’s 492 companies out of 500.
The widespread use of ATS emphasizes their vital role in the management of applications by large companies.
Looking beyond just the Fortune 500, a broader analysis of companies in our database reveals a more diverse ATS landscape. While Workday dominates among Fortune 500 companies, smaller companies use a wider range of ATS. Across all companies analyzed, Greenhouse leads with a 19.3% market share, followed closely by Lever at 16.6%, Workday at 15.9%, and iCIMS at 15.3%.
Key takeaways for job seekers
- ATS optimization is key. Many large companies use an ATS, and so do smaller ones. This means you must adjust your resume and application materials to be ATS-friendly. Doing this helps ensure your application is searchable.
- Research popular ATS platforms. You should get to know their features and quirks. Focus on Greenhouse, Lever, Workday, and iCIMS. This will help you understand how your application is processed.
- Consider the size of the company. Workday is popular with Fortune 500 firms. However, smaller organizations might use other ATS platforms. Researching the specific company you are applying to can provide valuable insights.
Keys to success: what leads to an interview in 2025?
Landing an interview is a crucial first step in any job search. We looked at over 2.5 million job applications to find out what makes a candidate stand out. Our findings reveal a clear picture of what recruiters are looking for and how job seekers can maximize their chances of being noticed.
Perhaps the most impactful factor is job title matching. Candidates with job titles on their resumes that match the target title from the job listing had an interview rate 10.6 times higher than those who did not. This underscores how important it is to customize your application materials. You should make sure to include the keywords and terms from the job description. Recruiters are looking for candidates whose skills and experience fulfill the job requirements.
Education and credentials also play a significant role. Holding a higher degree (such as a master’s or doctorate) increased interview rates by 6.7 times. Even a bachelor’s degree alone increased the interview likelihood by 6.1 times.
Along with your qualifications, a great application can improve your chances of getting an interview. Including a cover letter increased interview rates by 3.4 times. Personalizing your application and showing genuine interest in the role can truly help.
In addition, an optimized LinkedIn profile led to a 2.2 times higher interview rate. In today’s digital world, having a strong online presence is key. It helps you show your skills and experience to prospective employers.
Key takeaways for job seekers
- Job title matching is crucial: Aligning your resume with the target job title can increase your interview rate by a remarkable 10.6 times.
- Education matters: Higher degrees and bachelor’s degrees significantly improve interview chances.
- Cover letters are making a comeback: Including a well-written cover letter can increase your interview rate by 3.4 times.
- LinkedIn optimization is essential: A strong LinkedIn profile can lead to a 2.2 times higher interview rate.
- Tailoring your application is key: Customizing your resume and cover letter to match the specific requirements of the job is critical for success.
Navigating the ATS maze: how recruiters filter you
We all know the ATS is a hurdle, but what’s really going on behind the scenes? We asked over 380 recruiters directly: what criteria do you use to filter candidates in an ATS or similar system? The answers shed some serious light on how your application gets sorted.
Imagine a recruiter’s screen as a digital haystack of resumes. To find the right needle, they rely on keyword searches and filters. In fact, over 99.7% of the 384 recruiters we surveyed use filters in their ATS or similar system to find the right candidate to interview.
A staggering 76.4% of recruiters start filter candidates by skills, making it the opening chapter of your resume’s story. If your skills don’t jump off the page, the rest of your narrative might never be read.
Next, the recruiter often searches by educational background, a crucial filter for 59.7% of them. They want to see the foundation of your knowledge, the degrees and qualifications that frame your expertise. Along with degrees, certifications and licenses add depth and credibility; 50.6% of recruiters filter by these.
Then comes the title, the headline of your career. 55.3% of recruiters use job titles as a keyword to filter applicants. This helps them to quickly grasp your role, and aligning it with the target job can dramatically amplify your chances, turning a simple glance into a compelling interview invitation. But simply having the job title isn’t the only factor. Over 44% of recruiters we surveyed filter candidates by years of experience.
While the rise of remote work has shifted some perspectives, location remains a factor for 43.4% of our survey respondents, a reminder that geography still plays a role in the professional landscape.
Key takeaways for job seekers
This data makes one thing clear: the ATS is a critical step. To make it work for you, you’ve got to play the game:
- Keyword optimization is essential: Focus on the skills and keywords in the job description.
- Show off your credentials: Make them easy to find.
- Use consistent job titles: Match your resume to the job you’re applying for.
- Be clear about location: Recruiters are searching for candidates who are in the area, so make it clear that you are!
- Highlight your skills, not just your years: Skills are more important than just time spent in a field.
Where recruiters find (and hire) top talent
Ever wonder where recruiters are actually looking for talent, and more importantly, where they’re finding the best candidates? We asked them directly, and the answers might surprise you. Here’s a peek behind the curtain of candidate sourcing, hiring effectiveness, and if referrals matter.
So, where do recruiters actually find their candidates? Well, it’s a mix, and LinkedIn definitely takes the crown. A huge 75% of recruiters are combing through LinkedIn profiles, so if yours isn’t polished, you’re practically invisible.
Interestingly, employee referrals are still a major player, with 60% of recruiters trusting internal recommendations for sourcing candidates – proof that networking within companies really does matter. And speaking of external help, recruitment agencies are just as popular, also sitting at around 60%. Social media’s also a big deal; over half of recruiters, about 55%, are scrolling through Facebook, Instagram, and even TikTok.
Don’t underestimate the classic job boards either; nearly half of the recruiters we surveyed, 48%, are still using job boards like Indeed and Monster to source candidates. Plus, a good 41% digging through candidates already in their applicant tracking systems (ATS) from previous job openings.
Every advantage counts. We asked recruiters about the importance of employee referrals in their hiring process, and the results underscore the significant role that networking plays.
A substantial 69.4% of recruiters consider employee referrals either ‘extremely important’ or ‘very important’. This clearly indicates that referrals are a powerful tool in the hiring process. Even those who consider referrals ‘moderately important’ (19.7%) acknowledge their value. This suggests that while not always decisive, referrals are consistently considered.
Something else to keep in mind that is a staggering 73.3% of recruiters ‘always’ or ‘often’ evaluate a candidate’s LinkedIn profile. This means that for nearly three out of four recruiters, your LinkedIn profile is a critical part of your application. So, don’t undervalue your LinkedIn presence!
Key takeaways for job seekers
- Optimize your LinkedIn profile: This is your most crucial online presence, and where the best talent is found.
- Network actively: Cultivate relationships and ask for referrals.
- Be visible on social media: Maintain a professional presence and engage with relevant content.
- Use job boards strategically: Focus on boards that align with your industry.
The evolving landscape of hiring: trends and sourcing shifts
The world of hiring is constantly changing, and the past few years have been no exception. We asked recruiters about the biggest shifts they’ve seen in candidate sourcing and overall hiring trends. Here’s what they told us:
Sourcing trends
A dominant 67.27% reported a greater emphasis on LinkedIn and social media recruiting. This surge confirms the growing importance of online professional presence. Technology is also taking center stage in recruiters’ workflows. 48.31% noted an increased reliance on technology like ATS and AI tools. Automation is clearly playing a bigger role.
Don’t count out the power of a strong referral. A significant 53.51% are putting greater focus on employee referrals. Internal networks remain valuable. But even if you don’t have relevant connections, recruiters are still using staffing agencies and recruitment firms—a strong 50.91% of recruiters are tapping into staffing services.
18.44% of recruiters reported minimal changes to their sourcing approach, making a diverse job search strategy all the more critical!
A dominant 67.27% reported a greater emphasis on LinkedIn and social media recruiting. This surge confirms the growing importance of online professional presence. Technology is also taking center stage in recruiters’ workflows. 48.31% noted an increased reliance on technology like ATS and AI tools. Automation is clearly playing a bigger role.
Hiring trends
Prioritizing diversity and inclusion is the biggest trend for 34.81% of recruiters. This reflects a crucial shift in hiring priorities.
Recruiters said that remote jobs are here to stay, and with that comes technology-driven recruiting. 23.64% highlighted the increased use of remote hiring processes like virtual interviews and remote onboarding. The pandemic’s impact is still being felt.
Meanwhile, automation and AI are becoming increasingly useful for recruiters in the hiring process. Technology is transforming the entire process and 23.12% are seeing more reliance on AI and automation to sort resumes, schedule interviews, communicate with applicants, and onboard new employees.
This reliance on technology is even more valuable given that 12.73% of recruiters observed higher competition for top candidates. A lot of this comes down to skills and 5.71% noted a shift toward skills-based hiring. This trend focuses on abilities over traditional qualifications like formal education.
Key takeaways for job seekers
- Master the digital game: Focus on your LinkedIn and social media presence, as this is where recruiters are increasingly looking.
- Be tech-savvy: Familiarize yourself with ATS platforms and virtual interview tools.
- Leverage your network: Seek out employee referrals and build strong connections.
- Embrace virtual hiring: Be prepared for online interviews and remote onboarding.
- Highlight your skills: Emphasize your abilities and experience, as skills-based hiring grows in importance.
What makes candidates stand out
It feels like the smallest of details can make or break your job search. We asked recruiters what truly makes a candidate stand out. Here’s what they revealed:
A strong 58.18% of recruiters are impressed by measurable achievements on resumes. Numbers talk! But not just any metrics will do. They need to be highly relevant and tailored resumes hit the mark. 55.32% appreciate resumes tailored to the job description, proving that customization is key.
A standout cover letter can also make all the difference to hiring teams. Generic templates aren’t enough since 54.03% value personalized cover letters that highlight unique value.
It’s also important to keep your LinkedIn consistent with your resume. A significant 46.75% check for alignment between LinkedIn profiles and applications. You don’t have to customize your LinkedIn after every application—you can keep your LinkedIn profile more comprehensive than a tailored resume.
It’s worth it to make professional connections—44.68% see networking to build relationships as a standout factor. And a show of continued interest keeps you at the forefront of a recruiter’s mind. 24.42% appreciate professional follow-up after application submission.
Key takeaways for job seekers
- Be specific and quantifiable: Use the STAR method to answer questions and highlight your achievements with numbers.
- Research thoroughly: Know the company and role inside and out.
- Customize your application: Tailor your resume and cover letter to each job.
- Maintain a consistent online presence: Ensure your LinkedIn profile aligns with your resume.
- Network strategically: Build relationships within your target companies.
- Follow up professionally: Show your continued interest after applying.
- Focus on value: Emphasize what you bring to the table, not just what you want.
Essential skills for 2025: bridging the gap between talent and demand
Employers want candidates with a mix of hard and soft skills. This combination helps them succeed in fast-paced, team-oriented workplaces. We analyzed 4.6 million job listings to see which skills employers want most.
The importance of soft skills and hard skills
So when it comes to landing a job, which type of skills matter most? We asked recruiters whether hard skills or soft skills take precedence. The results?
According to 49.61% of recruiters, hard and soft skills are equally important. However, 27.01% of recruiters prioritize soft skills like your work ethic, personality, and behavioral traits. 14.29% of recruiters prioritize hard skills that prove you can do the job effectively.
For 9.09% of recruiters, the importance of hard vs. soft skills depends on the specific role they’re hiring for. It’s important to include the most relevant keywords from the job description in your resume. Aligning your resume with skills the hiring team is looking for is the best way to boost your chances of being invited to an interview.
Top 10 most commonly required skills
Across all industries and roles, communication reigns supreme. Almost 55% of job listings emphasize communication skills. This underscores the need for clear and effective communication in the workplace in 2025, possibly because remote work is now the norm rather than the exception.
Management skills come second, with 52% of job openings requiring this skill. This underscores a clear need for those who can lead and manage teams or projects effectively.
Analytical skills appear in 24% of job listings. This highlights the increasing demand for employees who can tackle complex problems.
Most popular skills from 4.6 million job listings
Hard skills in demand
Computer science leads in hard skills, showing up in 21.1% of job listings in 2025. This is up from 18.6% in 2024. Interestingly, the demand for project management skills has stayed steady from 2024 to 2025. In 2024, these skills appeared in 15.7% of job listings. So far in 2025, they appear in 14.6% of job listings.
Most popular hard skills in 2025
The rising importance of soft skills
While hard skills remain crucial, the demand for soft skills is on the rise. Communication, management, and analytical skills are in high demand. All three have seen a growth in demand from 2024 to 2025. Leadership skills remain important, but their demand has decreased. This suggests a growing focus on other soft skills.
Most popular soft skills in 2025
The rise of AI: a growing presence in job requirements
Artificial intelligence (AI) is no longer a futuristic concept confined to science fiction. It is rapidly transforming industries and, as a result, reshaping the skills employers seek in their workforce. Our analysis of job listings reveals a clear upward trend in the demand for AI-related skills.
In 2025, 3.37% of job listings specifically mention AI skills, marking an 11.5% increase from 2024.
This growth builds on a notable increase from 2023 to 2024, when the percentage of job postings with AI skills jumped by 43.7%. This shows how fast AI technologies are being used in different sectors.
There is clearly a growing need for professionals who can use these AI tools effectively.
The rise of AI presents both challenges and opportunities for job seekers. While some roles may be displaced by automation, many new roles that require AI-related skills are emerging. Job seekers who focus on gaining skills in machine learning, natural language processing, and data science will be well-positioned to seize these opportunities.
Even if a job doesn’t focus on AI, knowing about these technologies is more valuable now. Knowing how AI can improve efficiency, productivity, and decision-making helps job seekers stand out.
Key takeaways for job seekers
- Communication, management, and analytical skills are highly sought-after: These skills are consistently in high demand across various roles and industries.
- Soft skills are increasingly important: Employers are placing a growing emphasis on soft skills such as communication, management, and problem-solving.
- Computer science skills are in high demand: The demand for computer science expertise continues to grow, reflecting the increasing importance of technology in the workplace.
- AI skills are on the rise: While still relatively niche, AI-related skills are becoming increasingly valuable in the job market.
Conclusion: empowering job seekers for 2025 and beyond
The 2025 job search landscape presents both challenges and opportunities. This report shows that job seekers face a competitive landscape. Understanding the details of the hiring process is key. Job seekers today must understand applicant tracking systems. They also need to create strong applications that showcase their skills. Being informed and adaptable are key.
Jobscan is committed to providing data-driven insights that illuminate the path to career success. We believe that simplifying the job search and providing helpful resources can help support job seekers. By doing so, job seekers can tackle challenges, meet their career goals, and secure satisfying jobs.
The insights shared in this report are a starting point for informed and effective job searching. We urge job seekers to take advantage of these findings. Look into the tools Jobscan offers. Then, keep adjusting your strategies as the job market shifts.
You can confidently tackle your job search in 2025 and beyond. By being persistent, prepared, and proactive, you can unlock your full potential.
Methodology and audience
Job seeker study
Jobscan surveyed 442 job seekers in February 2025. These job seekers are from Jobscan’s audience of email subscribers. 37.2% of these respondents are seeking senior-level roles, 39.5% are seeking mid-level roles, 11.3% are seeking intermediate roles, and 11.3% are seeking entry-level roles.
Applicant tracking system study
The data in this study was captured in two ways.
For the data on ATS use by Fortune 500 companies, we reviewed job listing pages for all 500 companies on the list. We were able to detect which ATS was used for 492 of the companies.
For the data on general ATS use, we used internal data from self-reported entries in Jobscan’s resume scanner. The data came from over 1 million scans for 12,820 companies.
Individual companies were not contacted for information on ATS market share or individual use. The data was collected manually by an in-house data team to ensure an accurate and unbiased report.
Interview rates study
Anonymous job seeker activity was studied based on activity in Jobscan tools.
Recruiter study
Jobscan surveyed 384 recruiters in February-March 2025 using a random sampling of HR professionals who are directly involved in the hiring process. The survey was run through Zoho Surveys
Skills study
The data in these reports was pulled from Jobscan’s database of job descriptions that were added by users from Jobscan’s resume scanner.