Nearly two-thirds of job seekers (63 percent) believe salaries are not keeping pace with inflation, according to new data from Employ Inc. While more candidates are negotiating their pay than in years past, many still feel their earnings fall short of rising costs, pointing to a growing tension between compensation progress and economic reality.
These findings come from Employ’s 2025 Job Seeker Nation Report, an annual research study that explores how job seekers view the labor market, what they value in potential employers, and how they navigate the hiring process from compensation conversations to AI in recruiting. Based on responses from more than 1,500 U.S. adults who are working or actively seeking work, the report captures insights into candidate behavior, satisfaction, trust, communication preferences and job search sentiment.
This year’s edition of the report, titled, Job Market Truths—What’s Driving Candidates in 2025, reveals that 37 percent of job seekers negotiated their salary in the last year, up from 29 percent in 2017. Of those workers who negotiated higher pay, 80 percent reported receiving raises of between 5 and 10 percent. This increase in negotiations was driven by concerns about inflation, as well as increased pay transparency in the marketplace, with 48 percent of respondents noticing higher salaries for job postings similar to their current role. These findings suggest that a decrease in stigma surrounding access to pay information may be contributing to the normalization of salary discussions across the job market.
“Workers are becoming more proactive in advocating for themselves, but the perception that pay is falling behind real-world costs hasn’t gone away, despite the fact that the majority of respondents acknowledge receiving offers at or above expectations,” said Stephanie Manzelli, People Officer at Employ. “Companies need to think more holistically about compensation. It’s not just about the offer, it’s also about communicating value, providing competitive benefits and creating transparency in the process.”
Employ’s data further reinforces this, with 58 percent of respondents listing healthcare benefits as a very important compensation factor and 49 percent ranking a 401(k) program or matching contribution as very important.
As labor market uncertainty persists, Employ’s 2025 Job Seeker Nation Report offers additional insight into what candidates expect from employers today. With Employ’s intelligent hiring suite, recruiters and HR teams can translate those insights into action. These solutions help organizations streamline the hiring process, reduce manual workload, and improve the candidate experience.
According to a recent IDC Research Business Value Snapshot, Employ customers report a 34 percent faster time to post jobs, a 33 percent improvement in application quality and a 22 percent quicker offer delivery. Recruiters using the Employ platform were also found to be 21 percent more efficient, with hiring manager time per hire reduced by 37 percent. In turn, Employ’s suite makes it easier to standardize how compensation and benefits information is shared across job postings. With this information readily available from the start, employers reduce unnecessary back-and-forth and empower candidates to make more informed decisions, building trust and momentum from the very first interaction.
To explore more candidate insights and actionable takeaways for recruiters, download the full 2025 Job Seeker Nation Report here.
*IDC White Paper, sponsored by Employ, The Business Value of Employ, #US53244125, May 2025
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