The Great Thaw: Why 2025 Could Be Your Best Year to Land an Entry-Level Job After the Hiring Freeze

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After two years of the coldest job market since the pandemic, something remarkable is happening in 2025. The ice is finally cracking.

While job seekers have been stuck in what economists call the “Great Freeze,” with unemployment for recent college graduates hitting 5.8% in Q1 2025 (the highest since 2021), new data from ZipRecruiter reveals a massive shift underway. Employee turnover has dropped from 177% in 2023 to just 50% in 2025. Companies and workers alike hit pause, choosing stability over risk amid economic uncertainty.

But here’s what most job seekers don’t realize: this freeze is thawing fast, and entry-level candidates are positioned to benefit most. Nearly two-thirds of businesses (63%) plan to increase hiring in the year ahead, with 32% specifically prioritizing entry-level roles that were devastated during the slowdown.

The question isn’t whether the hiring surge is coming. It’s whether you’ll be ready to capitalize on it before everyone else catches on.

By the end of this article, you’ll understand exactly what’s driving this shift, which industries are hiring first, how to position yourself ahead of the competition, and the specific actions you need to take right now to land one of these newly available positions.

☑️ Key Takeaways

  • Employee turnover plummeted from 177% in 2023 to just 50% in 2025, creating the “Great Freeze” where workers and employers both chose stability over change
  • 63% of businesses plan to increase hiring in 2025, with 32% specifically targeting entry-level workers as the market thaws and companies ramp up growth
  • 61% of employers will raise salaries next year while 38% are dropping degree requirements in favor of skills-based assessments and practical abilities
  • The timing advantage is real: Companies prioritizing entry-level hiring right now are competing for talent before the market fully heats up in 2026

The Numbers Behind the Great Freeze (and Why It’s Finally Ending)

The data tells a striking story. Employee turnover dropped 72% from 177% in 2023 to 50% in 2025, according to ZipRecruiter’s Third Annual Employer Survey. That’s not just a statistical blip. It represents a fundamental shift in how both employers and workers approached the labor market.

30% of employers reported lower turnover due to external economic factors, up from 24% in 2024. Workers chose what researchers call “job hugging” behaviors, staying put amid uncertainty. The hiring rate fell to 3.3% in 2024, the lowest since 2013 (excluding pandemic distortions). Everyone was waiting for someone else to make the first move.

What caused the freeze? Economic uncertainty topped the list. Inflation, tariff concerns, and potential recession fears made both sides cautious. High interest rates limited corporate borrowing and investment. Companies hoarded talent but refused to expand headcount. Job seekers avoided risk during unstable conditions.

But the ice is cracking for concrete reasons. Economic indicators are stabilizing. Companies realize they can’t delay growth indefinitely. There’s pent-up demand for talent after years of minimal hiring. Most tellingly, 76% of employers now prioritize retention strategies, signaling confidence to invest in their workforce again.

Interview Guys Tip: The best time to job search isn’t when everyone realizes the market is hot. It’s right now, as companies are quietly ramping up before the flood of applicants arrives.

The reality is that most resume templates weren’t built with ATS systems or AI screening in mind, which means they might be getting filtered out before a human ever sees them. That’s why we created these free ATS and AI proof resume templates:

New for 2026

Still Using An Old Resume Template?

Hiring tools have changed — and most resumes just don’t cut it anymore. We just released a fresh set of ATS – and AI-proof resume templates designed for how hiring actually works in 2026 all for FREE.

Entry-Level Workers Are Getting the First Call

Here’s the game-changer: 32% of employers plan to hire more entry-level workers over all other roles. This reverses years of decline. Entry-level hiring had dropped 23% compared to March 2020, becoming what industry analysts called the “weak point” throughout 2023-2024. Now it’s becoming the priority.

Why are companies suddenly prioritizing entry-level? The economics make sense. Entry-level workers cost less than experienced hires. Companies want adaptable workers who can learn new systems rather than those stuck in old ways. Fresh perspectives matter more when business models are evolving rapidly.

But the biggest shift involves skills. 38% of companies are dropping degree requirements entirely, according to the ZipRecruiter data. Nearly two-thirds of employers now use skills-based hiring practices for entry-level positions. Only 46% still screen candidates by GPA, down from 74% in 2019.

This matters tremendously for candidates without traditional four-year degrees. Certifications, bootcamps, and practical projects now carry real weight. Your portfolio of work matters more than your pedigree. Companies report 90% fewer mis-hires when using skills-based approaches, with 94% saying these methods better predict job success.

Understanding skills-based hiring dynamics gives you a massive advantage in this market.

The Salary Surge Coming in 2025

Money talks, and companies are finally listening. 61% of employers plan to raise salaries in 2025, reversing the wage stagnation that defined the freeze. Average salary increase budgets sit at 3.9% for 2025, and 34% of employers admitted they struggled to attract candidates in 2024 because pay expectations exceeded what they offered.

The math works in workers’ favor right now. Wages are growing 4.2% year-over-year, while inflation sits at just 2.7%, according to recent government data. That means real purchasing power is increasing. 57% of workers saw their buying power grow in the past year.

Competition for shrinking labor supply drives this trend. Companies learned an expensive lesson: constant turnover costs more than paying competitive wages. They’d rather invest in retention than face endless recruiting cycles.

The geographic dimension matters too. Remote entry-level positions are expanding across multiple industries. You can earn competitive salaries while living in affordable areas. Some companies pay 15-30% premiums to attract remote entry-level talent, recognizing the flexibility attracts top candidates.

Interview Guys Tip: When negotiating in this environment, research shows job-hoppers see 7.2% pay increases versus 4.8% for job stayers. The thaw creates leverage you haven’t had in years.

Understanding how to answer salary expectations questions becomes critical when companies are finally willing to compete on compensation.

Which Industries Are Hiring Entry-Level Workers First

Not all industries are thawing at the same rate. Three sectors are leading the charge, creating the most opportunities for entry-level candidates right now.

Healthcare and social assistance tops the list. These roles never stopped hiring entirely, but demand is accelerating. Nursing shortages continue post-pandemic. Entry-level healthcare positions include medical assistants, patient care coordinators, and health information specialists. Average entry-level salaries range from $36,000 to $52,000, with excellent benefits and job security.

Technology tells a more nuanced story. Yes, Big Tech reduced new graduate hiring by 25%, making headlines. But the overall tech sector is stabilizing and even growing in specific areas. AI-adjacent roles are expanding rapidly: data analysis, cybersecurity, and cloud engineering. 52% of employers report AI-driven creation of new roles requiring entry-level talent.

Here’s a surprising twist: small and medium businesses lead the charge in tech hiring. 47% of SMBs are using AI in hiring versus just 35% of large enterprises. These smaller companies are often more willing to take chances on entry-level candidates who show potential.

Professional and business services round out the top three. Project coordination roles are expanding as remote work becomes standard. Customer service and administrative positions are going remote. These roles offer clear pathways from entry-level to management, with average starting salaries between $40,000 and $55,000.

Want to know which sectors offer the best opportunities? Our analysis of the top 10 industries hiring entry-level talent breaks down exactly where to focus your search.

The skills they’re seeking are telling. The top three in-demand abilities are collaboration, customer service, and communication. “People-centered skills” dominate job postings in 2025. While AI skills command 17.7% salary premiums, human skills still determine who actually gets hired.

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How to Position Yourself Before the Rush

Strategic timing matters enormously right now. Companies are making hiring decisions, but most job seekers haven’t caught on yet. Here’s your action plan.

  • Build your skills-based resume immediately. Showcase specific projects and outcomes, not just degrees. Include measurable results from coursework, internships, and volunteer work. Create dedicated “Technical Skills” and “Soft Skills” sections. Use action verbs that demonstrate collaboration and problem-solving abilities.
  • Get assessment-ready. Remember that 38% of companies now use candidate assessments for entry-level hiring. Practice common formats: behavioral questions, situational judgment tests, and work simulations. Take free online assessments to familiarize yourself with these formats before they matter.
  • Target companies actively hiring. Small and medium businesses are hiring faster than large enterprises right now. Look for companies expanding to new markets or launching new products. Use LinkedIn to identify organizations with multiple entry-level openings. That signals genuine growth, not just backfill positions.
  • Leverage the certification advantage. Micro-credentials carry weight in skills-based hiring environments. Free and low-cost options include Google Certificates, IBM Skills Build, and Microsoft Learn. Industry-specific certifications matter too: CompTIA for tech, HubSpot for marketing, NASM for fitness.
  • Network during the quiet period. Coffee chats and informational interviews are easier to secure right now. Build relationships before hiring managers get flooded with applications. Alumni networks prove particularly valuable during market transitions.

Interview Guys Tip: Companies making hiring decisions in Q4 2025 and Q1 2026 are moving fast. The candidates who position themselves now will skip the massive competition surge coming in spring 2026.

Looking at the highest paying entry-level jobs helps you target roles that combine opportunity with compensation.

The Catch: Why Not Everyone Will Benefit

Reality check: the thaw doesn’t guarantee instant job offers for everyone. Competition remains fierce for top entry-level positions. Geographic location matters significantly. Some cities show hiring 26% above pre-pandemic levels, while others still struggle.

Industry variations are stark. Retail and hospitality remain cautious. Healthcare is booming. Technology is split between Big Tech contraction and SMB expansion.

The unemployment reality provides important context. The rate sits at 4.1%, still elevated compared to 3.4% in early 2023. Recent college graduate unemployment reached 5.8% in Q1 2025. Long-term unemployment (27+ weeks) nearly doubled from early 2023 to 2025. The job-finding rate has declined persistently since July 2022.

What could go wrong? If GDP growth slows significantly in 2025, hiring could stall again. Labor hoarding might end if recession hits, triggering layoffs. Companies could reverse course on remote entry-level positions. Economic uncertainty from policy changes might extend the freeze.

Navigate this uncertainty by applying to multiple industries simultaneously. Consider contract-to-hire positions as entry points. Be geographically flexible if possible. Don’t wait for “perfect” conditions that might never arrive.

Your Action Plan: Capitalize on the Thaw in the Next 90 Days

Timing is everything. Here’s your month-by-month roadmap.

  • Month 1: Preparation. Audit your resume for skills-based language. Identify three to five target companies actively hiring entry-level workers. Complete at least one relevant certification or online course. Set up your LinkedIn profile optimized for entry-level searches.
  • Month 2: Outreach. Connect with 20 professionals in target industries. Request three to five informational interviews. Join industry-specific Slack or Discord communities. Begin applying to five to ten positions per week.
  • Month 3: Execution. Apply to 15 to 20 positions weekly as hiring accelerates. Follow up on initial applications. Leverage network connections for referrals. Practice interview skills with mock interviews.

The numbers game matters. It took 68.5 days on average to get a job offer in 2024. Multiple applications increase odds significantly. Networking still drives 70% of hires in many industries.

Following a structured job search timeline prevents the scattered approach that wastes time and energy.

The Bottom Line: Strike While the Ice Cracks

The Great Freeze is thawing, and entry-level workers are positioned to benefit first. With 63% of employers planning to increase hiring and 32% specifically targeting entry-level candidates, the next 12 months represent a window of opportunity not seen since before the pandemic.

But here’s the critical insight: the advantage goes to candidates who move now, before the market fully heats up and competition intensifies. Companies are quietly ramping up hiring in Q4 2025 and Q1 2026, making hiring decisions before the spring surge.

You know the numbers. You understand the opportunity. The only question left is whether you’ll position yourself to capitalize on the thaw, or watch from the sidelines as others secure the newly available entry-level positions.

If you’re ready to make your move, start by exploring the best entry-level jobs in 2025 that combine strong salaries with real growth potential.

The ice is cracking. Are you ready to move?

The reality is that most resume templates weren’t built with ATS systems or AI screening in mind, which means they might be getting filtered out before a human ever sees them. That’s why we created these free ATS and AI proof resume templates:

New for 2026

Still Using An Old Resume Template?

Hiring tools have changed — and most resumes just don’t cut it anymore. We just released a fresh set of ATS – and AI-proof resume templates designed for how hiring actually works in 2026 all for FREE.


BY THE INTERVIEW GUYS (JEFF GILLIS & MIKE SIMPSON)


Mike Simpson: The authoritative voice on job interviews and careers, providing practical advice to job seekers around the world for over 12 years.

Jeff Gillis: The technical expert behind The Interview Guys, developing innovative tools and conducting deep research on hiring trends and the job market as a whole.


This May Help Someone Land A Job, Please Share!