One of the universal and “horizontal” topics in the analyst corps is hiring trends. It affects all of us, from brands to SMBs to the startups and tech giants that serve them. And hiring dynamics – like many things – follow oscillations in macroeconomic factors and fundamentals of supply & demand.
So where are we now in the world of hiring? Skills marketplace Upwork has ample first-party data to answer that question… and insights to make sense of it all. The latter manifests in the Upwork Research Institute. We recently gathered some of those insights from its managing director, Kelly Monahan, Ph.D.
In addition to running the Upwork Research Institute, Monahan co-authored the upcoming book. Essential: How Distributed Teams, Generative AI, and Global Shifts are Creating a New Human-Powered Leadership. Published by Wiley & Sons, it hits bookshelves next week – well timed with the AI era.
Our biggest questions: what skills categories are positioned best as we enter 2025? Will we see any dark horses emerge this year (like last year’s short-lived “prompt engineer)? And the ultimate elephant in the room: How will AI impact or even replace some job categories? What’s bulletproof, and what’s at risk?
The Right Balance
One thing that jumped out from Monahan’s insights was the emphasis on specialization in talent hiring. Put another way, job security correlates to levels of specialization. That’s always been the case in everything from neurosurgeons to systems engineers. But this dynamic continues to broaden.
“Upwork platform data, which tracks the fastest-growing skills, reveals a clear shift as employers seek talent with deep expertise in high-impact areas like AI development, data analytics, and scripting & automation,” she said, “moving away from the traditional preference for ‘jack-of-all-trades’ roles.”
This demand for specialization isn’t just about horizontal functions like those noted above. Vertical specialization is valuable, she says. This is all about having deep experience and perspective in the nuances of a given field (e.g., eCommerce), or where regulatory knowledge is critical (e.g., healthcare).
An emphasis on specialization is meanwhile being accelerated by AI, rather than slowed down by it. This is simply because, as AI takes over broad and repetitive/rote tasks, there’s even more need for specialized talent to maintain the right balance of human intellect and innovation in the overall mix.
The Good News
That last part doesn’t just have strategic implications for job seekers and applicants but enterprises too. Though AI continues to promise a golden age of operational efficiency and cost-cutting, organizations that take it too far will find a suboptimal human/AI balance. The former isn’t going away anytime soon.
“Productivity in 2025 will depend on how well organizations balance technological innovation with human adaptability and well-being,” said Monahan. “The ability to create an AI-enhanced work model will be a defining factor in driving productivity. This involves more than just adopting AI tools—it requires building a workforce that can seamlessly integrate these tools into their workflows.”
Lastly, good news comes from generational factors. The sheer size of the baby boomer generation means mass retirement, thus creating several job openings. That creates a skills gap, which ambitious Gen-Zers can fill, given the right skills development. That brings us back to specialization.
“With more Baby Boomers retiring than Generation Z entering the workforce, many industries are facing a skills shortage, making deep human expertise and specialization essential, said Monahan. “Cultivating specialized skills will be critical for professionals looking to thrive in an evolving job market. Specialization isn’t just a trend—it’s becoming a cornerstone of success in the future of work.”
