The Great Tech Recruiting Rebound: Why 2025 Could Be Your Best Year Yet

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Before we begin, I’d like to take a minute to remember Ed Han. If you don’t know, Ed was an active member of the online recruiting community. He recently passed due to cancer. Ed was one of the original OGs of Recruiting Twitter. Back when I had literally 0 followers and 0 credibility - especially as an anon - he was one of the very first people to engage with me. Ed was known for his #EdTalks on LinkedIn as well. He will be missed!

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If you're reading this, you've probably weathered one of the most challenging periods in tech recruiting history. The past few years have felt like running uphill in quicksand – exhausting, frustrating, and sometimes seemingly impossible. But I've got some news that might just make your day: change is coming.

The Numbers Don't Lie: A Market on the Rise

Let's talk data. The IT staffing market is projected to grow by 5% in 2025. Now, you might be thinking, "Only 5%?" But context matters here, and this number is more significant than it might appear at first glance.

Consider this: we've just emerged from two consecutive years of double-digit decreases in 2023 and 2024. Even in the pre-pandemic "normal" year of 2019, growth was only 3%. This projected 5% growth isn't just a recovery – it's a statement. It's the market saying, "We're not just coming back; we're coming back stronger."

The Rising Tide Theory: Why This Matters Beyond Tech

Here's something I've learned over years in this business: tech hiring often acts as a leading indicator for broader market trends. When tech companies start hiring, other industries typically follow suit. Why? Because technology isn't just a sector anymore – it's the backbone of modern business transformation.

Think about it: When was the last time you heard of a major company initiative that didn't involve some form of digital transformation? Exactly. Tech hiring growth signals business confidence, and business confidence spreads like wildfire across sectors.

We’ve seen this time and time again in recent years:

• Tech fires (3/2020), everyone fires.

• Tech hires like crazy (post 3/2020), everyone hires

• Tech goes remote, everyone goes remote

• Tech calls in RTO, everyone goes RTO (in some capacity and generally speaking, of course)

• Tech fires, everyone fires

• And in 2025…we are projected to hire, so that only means one thing.

Market Signals: The Perfect Storm of Positive Indicators

Let's connect some dots that paint a compelling picture for 2025:

1. The Stock Market Outlook The market isn't just recovering; it's showing signs of robust growth for 2025. This matters because public company valuations directly impact hiring decisions. When stock prices rise, companies feel wealthier and more confident in investing in growth – which means hiring.

2. The Crypto Renaissance Whether you're a crypto believer or skeptic, you can't ignore its impact on tech hiring. The current crypto market explosion isn't just about digital currencies – it's creating entirely new categories of jobs and driving demand for blockchain developers, security specialists, and infrastructure engineers.

3. The Return of IPOs After a relatively quiet period, the IPO pipeline is filling up again. This is huge. Pre-IPO companies typically go on hiring sprees to show growth and post-IPO companies often expand rapidly with their new capital. Either way, it spells opportunity for recruiters.

4. M&A Activity Heating Up Merger and acquisition rumors are swirling again. M&A activity often creates immediate hiring needs as companies integrate, restructure, and expand. Even the speculation about M&A can drive hiring as companies staff up to make themselves more attractive acquisition targets.

The Psychology of Market Sentiment

Here's what's really interesting about all these positive indicators: they create a self-reinforcing cycle. When executives see positive market signals, they're more likely to greenlight previously frozen projects. When projects get approved, hiring follows. When hiring picks up, more projects become feasible. It's a virtuous cycle that we're positioned to benefit from.

The Competitive Landscape: Understanding What We're Up Against

Now, let's talk about the elephant in the room: competition. The improving market doesn't mean easy money. In fact, it might mean quite the opposite. Here's why:

The Hunger Games of Agency Recruiting

Remember those recruiters who were billing all time career highs in 2021? They haven't forgotten those numbers. Many have spent the last two years watching their GP deteriorate, and they're hungry – starving, even – to get back to those heights.

These aren't just your competitors; they're motivated, battle-hardened survivors who've learned to do more with less. They've spent the downturn refining their processes, deepening their networks, and getting leaner. They're dangerous.

The Return of the Big Box Agencies

As the market improves, watch for the major staffing firms to flex their muscles again. They've got the resources to flood the market with recruiters and sales reps. They'll be aggressively rebuilding their internal teams and leveraging their massive databases and established client relationships.

When these firms go on offense, they can create significant market pressure. They might not always offer the best service, but they can certainly make noise and compete on volume and price.

Why Starting Now Matters More Than Ever

Here's a truth about our business that never changes: today's actions determine tomorrow's results. In recruiting, we're always playing a long game. The calls you make today might not pay off for weeks or months, but they will pay off.

Right now, while many of your competitors are in holiday mode, you have a unique opportunity. The period between now and January 2nd is typically slow, with many decision-makers out of office and candidates in vacation mode. But that's exactly why it's the perfect time to lay groundwork.

The Early Bird Strategy

Think about this: While others are waiting for January 2nd to start their outreach, you could be:

• Building your candidate pipeline for Q1 2025

• Crafting personalized outreach campaigns

• Refreshing your network connections

• Researching target companies and their 2025 initiatives

• Preparing your marketing materials and value propositions

By the time others are just getting started, you could be weeks ahead in relationship building and pipeline development.

A Message to the Survivors

If you're reading this, you've already proven something remarkable: you're resilient. You've survived one of the most challenging periods in recruiting history. The last few years haven't just been a downturn; they've been a trial by fire.

Think about what you've learned:

• How to find opportunities in a scarce market

• How to maintain relationships during hiring freezes

• How to add value beyond just filling roles

• How to operate efficiently with limited resources

• How to stay motivated when deals fall through

These aren't just skills; they're superpowers in our industry. And now, as the market improves, you'll be able to apply these hard-won lessons in a more favorable environment.

Your Action Plan for 2025

The time to act is now. Here's what you need to do:

1. Audit Your Network Review your candidate and client relationships. Who haven't you spoken to in six months? A year? These are your first points of contact.

2. Update Your Market Intelligence What technologies are trending in your niche? Which companies are getting funded? What projects are being greenlit? This information is your currency.

3. Refine Your Processes Take what worked in the lean times and make it more efficient. Can you automate any part of your outreach? Can you systematize your follow-ups?

4. Set Aggressive but Realistic Goals Based on the 5% market growth projection, what's your target? Remember, some will exceed the market growth rate, while others will fall short. Position yourself to be in the former category.

The Bottom Line

2025 isn't just another year – it's an opportunity for a reset, a chance to apply everything you've learned during the downturn in a growing market. The challenges ahead are different but navigable, especially for those who start preparing now.

For those who've made it this far, who've survived the trials of the past few years, remember this: you've already proven you can handle the worst. Everything else is just details.

Your Call to Action

Don't wait for the market to prove itself. Don't wait for January. Don't wait for "the right time." The right time is now.

Take these next steps today:

1. Block out a few hours for strategic planning

2. Identify your top 20 candidates and 10 client targets

3. Draft your outreach strategy for the first quarter

4. Set your key performance indicators for Q1 2025

5. Start your outreach campaign before the holiday lull

6. When in doubt - MPC!

The market is turning. The opportunities are coming. The only question is: Will you be ready to seize them?

Remember, in this business, success goes to the prepared and the persistent. You've already proven you're persistent by surviving the downturn. Now it's time to prove you're prepared for the upturn.

Let's make 2025 your best year yet.