2025 was a special year for recruiting. On the one hand, there were signs of an easing on the labor market. On the other hand, many familiar problems remained and new challenges arose. Companies had to learn to deal with
Table of contents
Looking back to 2025
Bottlenecks on the labor market continue
The latest skills shortage analysis by the Federal Employment Agency shows In 2024, 163 professions were officially classified as shortage occupations in Germany. The analysis was published at the beginning of 2025 and thus serves as the basis for assessing the bottlenecks in the current year. Nursing and healthcare professions, IT positions and manual jobs are particularly affected.
For employers, this means that many jobs in these areas will still be difficult to fill in 2025. Competition for skilled workers will remain high, even if there has been a slight easing compared to previous years. If you want to remain visible and attract talent, you need to work on your attractiveness as an employer and how you approach the outside world.
Source: Federal Employment Agency, Skilled Labor Shortage Analysis 2024 (published 2025)
Skilling becomes a key issue
In addition to the external skills shortage, there is also a growing focus on qualifications within companies. The McKinsey HR Monitor 2025 shows that 33% of employees in Germany do not have sufficient skills for their current role. At the same time, 44% of employees will not have completed a single day of further training in 2024.
This makes it clear that the shortage of skilled workers is not just a problem on the labor market. It is also exacerbated internally if companies do not actively develop their employees. Those who do not offer clear upskilling programs today increase their own dependence on the external market and make recruiting even more difficult in the long term.(McKinsey HR Monitor 2025, Germany)
Quality of new hires under pressure
The McKinsey HR Monitor 2025 shows that only around 46 percent of new hires in Europe are considered successful. According to the study, a successful new hire is one who is still with the company after twelve months and is considered suitable for the role by the manager. If someone does not stay or does not meet expectations, the recruitment is considered unsuccessful.
The study also shows that 18 percent of new hires leave their company during their probationary period and the offer acceptance rate is only 56 percent.(McKinsey HR Monitor 2025)
McKinsey gives slightly better figures for Germany: Here, around 14 percent of new hires leave the company during their probationary period.
What does that mean? Speed in recruiting remains important, but without careful selection processes and good onboarding, the risk of wrong hires increases. The quality of recruitment therefore becomes the decisive success factor, not just time-to-hire.
Skills-first is gaining in importance
In 2025, the trend has become clear: companies are looking less at CVs or formal qualifications and more at specific skills. According to LinkedIn, talent pools can increase by an average of 6.1 times if skills are used as a criterion instead of job titles.(LinkedIn, Skills-Based Hiring Report 2025)
There is also a greater focus on internal mobility. The LinkedIn Workplace Learning Report 2025 emphasizes that further development and internal career paths are crucial to closing skill gaps and retaining talent.(LinkedIn Workplace Learning Report 2025)
AI moves into recruiting
2025 has shown that artificial intelligence has finally arrived in recruiting. According to the LinkedIn Future of Recruiting Report 2025, more and more companies are using AI along the entire recruiting funnel – from automated candidate searches to chatbots in the application process.(LinkedIn Future of Recruiting 2025)
At the same time, the McKinsey HR Monitor 2025 makes it clear that actual penetration is still in its infancy: Currently, only 19 percent of core HR processes in Europe are actively supported by generative AI. Many organizations are testing tools, but widespread regular operation has not yet been established.(McKinsey HR Monitor 2025)
Current challenges
Fewer applications per position
One of the most striking recruiting developments in 2025 is the falling number of applications per position in Germany. According to the Germany Recruiting Benchmarks Report 2025 by SmartRecruiters, the average number of applicants in Germany is
For recruiting teams, this means:
Instead of relying on large numbers of applicants, it is becoming increasingly important to actively target candidates, build talent pools and at the same time remain visible through strong employer branding. Processes must be lean and transparent so that valuable candidates do not drop out of the smaller applicant pool.
Higher expectations from candidates
The Randstad Workmonitor 2025 shows how demanding applicants are today. 57 percent of employees in Germany would turn down a job offer if it did not allow for flexible working arrangements. Work-life balance and meaningfulness are just as important as salary for more than half.(Randstad Workmonitor 2025)
The LinkedIn Future of Recruiting Report 2025 confirms that candidates expect transparent processes and quick feedback. Those who fail to meet these expectations often lose talent during the application process.(LinkedIn Future of Recruiting 2025)
Conclusion: Candidate experience is no longer an additional topic in 2025, but crucial for recruiting success. Speed, clarity and flexibility are now basic requirements.
Technology needs know-how
2025 shows that although new technologies are gaining in importance in recruiting, their introduction is still faltering.
McKinsey emphasizes that the biggest barriers are not of a technical nature, but lie in the lack of know-how and confidence of HR teams. Without targeted training, AI remains a “black box” topic for many and is associated with skepticism rather than relief.(McKinsey HR Monitor 2025)
Conclusion: Recruiting teams in 2025 not only need new tools, but above all the ability to understand them and use them responsibly. Only when know-how and technology work together will AI unfold its full benefits in recruiting.
Outlook for the beginning of 2026
Talent pools are becoming indispensable
In the coming months, it will be crucial for companies to build up talent pools in a targeted manner. With fewer applications coming in, maintaining long-term candidate relationships is more important than ever.
Recruiting technology becomes part of everyday life
The consolidation of recruiting technologies is also on the agenda. After a phase of pilot projects, it is now a matter of integrating systems into everyday life and measuring their success using clear key figures such as quality of hire or offer acceptance rate.
Transparency becomes a success factor
As the use of AI increases, so does the pressure to make decision-making processes comprehensible. Applicants expect fair, clear and comprehensible processes.
Markets develop differently
In addition, regional differences are becoming more pronounced. While Germany remains relatively stable, the labor market in the UK is cooling noticeably. Southern Europe, on the other hand, is showing growth momentum, particularly in the service sector. For international companies, this means that recruiting strategies need to be adapted more regionally.
Source: Indeed Hiring Lab, August 2025
Conclusion
Recruiting developments in 2025 paint a clear picture: Fewer applications, higher candidate expectations and new technologies that present both opportunities and hurdles. For companies, this means focusing even more on sustainable relationships, transparent processes and measurable results. Tackling these issues will lay the foundation for successful recruiting in 2026.
FAQs
What are the most important recruiting developments in 2025?
In 2025, recruiting will be characterized by four main topics: the continuing shortage of skilled workers in many professions, the increasing focus on skills instead of CVs, applicants’ rising expectations of transparent processes and the widespread use of AI-supported tools in recruiting.
Will there still be a shortage of skilled workers in Germany in 2025?
Yes. According to the Federal Employment Agency’s skilled labor shortage analysis, a total of 163 occupations were classified as shortage occupations in 2024, published at the beginning of 2025. Nursing, IT and skilled trades are particularly affected.
What role will further training play in recruiting 2025?
Further training is crucial. The McKinsey HR Monitor 2025 shows that 33% of employees are not sufficiently qualified for their current role and 44% have not used a single day of training in 2024. Companies need to focus more on upskilling in order to retain their own specialists.
Which recruiting KPIs will be particularly important in 2025?
The key performance indicators include time-to-hire, cost-per-hire, offer acceptance rate, early turnover and quality of hire. They help companies to make recruiting success measurable and identify bottlenecks at an early stage.
How will AI change recruiting in 2025?
AI is increasingly being used in everyday life, for example for automated candidate searches, chatbots in the application process and KPI dashboards. The challenge remains for HR teams to understand the results and use them transparently so that applicants have confidence in the process.
What should companies consider in recruiting for 2026?
For 2026, it will be crucial to systematically build up talent pools, integrate recruiting technologies into everyday life and ensure transparent, fair processes. Strategies must also be more regionally differentiated, as labor markets develop differently in Europe.
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