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More applicants but harder to hire: LinkedIn highlights hiring challenges in 2025

LinkedIn's 2025 research highlights hiring struggles in APAC, driven by a skills mismatch, rising AI demands, and new tools to address these challenges.

LinkedIn’s latest research reveals a striking reality for job seekers and hiring managers in the Asia-Pacific (APAC) region. While 65% of people in APAC are actively seeking new roles in 2025, 61% of HR professionals report that finding qualified talent has become increasingly difficult. This comes as a significant 41% of job seekers apply for more jobs than ever but receive fewer responses.

Hiring managers are also feeling the strain. Nearly a quarter (24%) of HR professionals spend three to five hours daily sorting through applications, yet 64% report that fewer than half of these meet the required criteria. The hiring landscape is evolving, and both job seekers and employers are struggling to adapt.

Skills mismatch and shifting demands

The challenges are partly attributed to changing skills requirements. LinkedInโ€™s inaugural Work Change Report highlights a 300% increase in global hiring for artificial intelligence (AI) roles over the past eight years. The annual Jobs on the Rise list reveals that 70% of the featured roles, such as Artificial Intelligence Researcher and Sustainability Analyst, are new additions, reflecting evolving business needs.

Generative AI is playing a pivotal role in reshaping skills demands. LinkedIn predicts that the skills required for jobs in APAC will change by 70% by 2030, compared to 52% without generative AIโ€”an 18 percentage point difference. This rapid transformation leaves HR professionals grappling with a mismatch between the skills job seekers possess and those organisations require.

Technical and soft skills remain top priorities, with 52% of HR professionals highlighting technical expertise as a critical need, while 48% emphasise the importance of soft skills. Furthermore, 67% report a significant gap between available talent and their organisation’s requirements.

Piyush Mehta, Chief Human Resources Officer at Genpact, stresses the importance of a “trilingual” skillset: โ€œFirst, individuals must be experts in their domain, whether itโ€™s finance, risk, supply chain, insurance, or any other. Second, they must be fluent in technology, particularly data and AI, which are increasingly integral to every field. Lastly, they need to excel in professional skills like storytelling, interpersonal relationship management, and communication.โ€

How businesses are addressing the hiring challenges

To address the widening skills gap, businesses are turning to technology and internal development initiatives. LinkedIn data shows that 88% of global C-suite executives prioritise accelerating AI adoption in the coming year. For HR teams, AI-powered hiring tools rank as the top solution, with 54% in APAC stating these tools would simplify the hiring process. Furthermore, 78% believe AI helps identify qualified candidates more effectively.

Upskilling is another critical focus. LinkedIn found that 78% of HR professionals in APAC plan to invest in training programmes to equip their workforce with skills in AI, sustainability, and interpersonal communication.

Sumita Tandon, HR Director for APAC at LinkedIn, notes, โ€œFinding the right person for a role often feels daunting and difficult. Many of the fastest-growing job roles today didnโ€™t even exist 20 years ago. However, ensuring you have the right people, with the right skills, in the right roles will be crucial for a businessโ€™s success in the years to come.โ€

LinkedInโ€™s new tools to improve hiring outcomes

To help bridge the gap between job seekers and employers, LinkedIn has introduced several innovative features:

  • Job match feature: This tool aligns job seekersโ€™ skills and experience with open positions, improving the likelihood of receiving responses.
  • AI assistant for small businesses: Designed to make job posting and hiring more efficient, this feature is currently available to select customers in the US and will expand globally in the coming months.
  • Hiring Assistant: Launched in October, this AI-driven agent automates repetitive recruiting tasks, allowing HR professionals to focus on impactful work. It also prioritises skills-based hiring over traditional criteria like education or previous employers.

LinkedIn is also continuing to roll out verified job posts, ensuring job seekers can trust the authenticity of opportunities with a “verified” badge. With businesses adopting these tools and emphasising upskilling, the hiring landscape is evolving to meet the demands of a rapidly changing job market.

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