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LinkedIn Finds Employers Struggling with ‘Skills Mismatch’ Between Job Seekers and Company Needs

As 2025 begins, HR professionals and hiring managers face a growing challenge: job seekers are more active than ever, but their qualifications are not matching the needs of employers. According to LinkedIn’s “Work Change Report,” released on Jan. 15, this issue stems from a “skills mismatch” where the skills professionals possess aren’t aligning with the fast-evolving demands of companies. While nearly 40% of job seekers report applying to more roles but receiving fewer responses, 73% of HR professionals indicate that less than half of applications meet their criteria.

Erin Scruggs, LinkedIn’s head of global talent acquisition, explained that the rapid pace of change in skills and jobs is contributing to the issue. She emphasized that HR leaders are in a unique position to address this challenge by leading upskilling and reskilling efforts. Scruggs recommended that hiring managers focus on candidates who may not meet all job requirements but can grow into the role, especially through on-the-job training. Moreover, HR leaders can help organizations build talent internally, addressing a concern raised in a September Workday report, which highlighted that companies are struggling to retain top performers despite a flood of applications.

Employees increasingly seek growth opportunities as a key motivator for staying with a company. This trend points to the importance of internal mobility, which can both enhance employee satisfaction and help organizations retain valuable skills. LinkedIn’s research reveals that 77% of HR professionals plan to prioritize upskilling initiatives this year, particularly in fields such as AI, sustainability, and soft skills.

The demand for AI talent has surged over 300% in the past eight years, with roles like AI engineers, environmental officers, and AI researchers seeing the biggest increase. With the growing presence of AI in the workplace, new skills are required across various roles. However, some organizations may face challenges in upskilling their workers quickly enough. A TalentLMS report found that nearly half of employees believe AI is advancing faster than their companies can provide training.

In summary, HR leaders must not only address the skills mismatch between applicants and employers but also lead the charge in building talent through upskilling and reskilling programs. By doing so, they can help companies stay competitive in the fast-changing job market while improving employee retention and satisfaction.

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