‘The Great Freeze’ in Hiring Begins to Thaw

A new report from ZipRecruiter suggests the hiring slowdown that gripped the nation—dubbed “The Great Freeze”—may finally be easing. According to the October 2025 survey, 63% of U.S. businesses plan to increase hiring in the year ahead, signaling renewed confidence in the job market.

The Great Thaw: More Jobs, Fewer Quits

The report found employee turnover has dropped sharply, from 177% in 2023 to just 50% this year—a historic slowdown. Nicole Bachaud, labor economist at ZipRecruiter, said employers are “ramping up entry-level hiring, dropping degree requirements, and incorporating skills assessments.” She added that companies investing in workforce development and adaptability will gain a competitive edge as hiring rebounds.

Retention Takes Center Stage

With turnover down and hiring on the rise, 76% of employers now say retention is their top priority heading into 2026. Many cite “external economic factors” as a reason employees are staying put, with workers showing greater “job hugging” behavior—holding on to existing positions amid uncertainty.

Skills Over Degrees

Businesses are also shifting to skills-based hiring, with 38% of employers planning to evaluate candidates through skill assessments earlier in the process. Top in-demand skills include collaboration, customer service, and communication—traits that signal a stronger focus on people-centered workplaces.

As “The Great Freeze” gives way to “The Great Thaw,” job seekers and employers alike are preparing for a new phase in the labor market—one that rewards flexibility, adaptability, and real-world skills.