Pharmaceutical Industry Job Market Shows Signs of Recovery in Early 2025

Despite ongoing challenges, the pharmaceutical and biotech job market is demonstrating cautious optimism at the start of 2025. While layoffs continue to impact the industry, hiring expectations are on the rise, signaling a potential shift in employment trends.

Hiring Outlook Improves Amid Ongoing Challenges

According to BioSpace data and insights from Recruitment Manager Greg Clouse, most employers in the life sciences sector are planning to hire this year. Unlike the hesitant optimism observed in early 2024, companies are now actively discussing specific positions they need to fill and are looking to expand their teams beyond merely replacing turnover.

"Most of the companies I talked to are expecting to do some hiring this year," Clouse stated. "They're not going to do a ton of hiring like they did two or three years ago when they were scrambling to get people, but they are going to do some hiring."

This positive sentiment is reflected in BioSpace's 2025 U.S. Life Sciences Employment Outlook report, which revealed that 59% of surveyed organizations were actively recruiting as of late last year.

Job Market Dynamics: Decreased Openings, Increased Competition

Despite the optimistic hiring outlook, the number of job postings on BioSpace in January 2025 was 19% lower compared to the same period in 2024. This decline aligns with broader labor market trends, as the U.S. Bureau of Labor Statistics reported a decrease of 1.3 million job openings nationwide in 2024.

However, there are signs of improvement. Job postings on BioSpace increased by 5% from December to January, indicating that employers are beginning to ramp up hiring activities for the new year. Simultaneously, competition for available positions has intensified, with a 64.6% spike in applications and an increase in the job response rate from 23.1% to 25.5%.

Clouse noted an increase in the number of candidates in the market compared to last year, attributing this to recent layoffs and professionals seeking better positions. Some biopharma workers are currently underemployed, as illustrated by the example of a senior manufacturing manager who took a supply chain manager position while still searching for a more suitable role.

Layoffs Continue, but at a Slower Pace

While job losses remain a concern in the biopharma sector, the rate of layoffs has slowed compared to the previous year. Approximately 1,300 biopharma employees were let go in January 2025, about 200 fewer than in January 2024. However, the cuts were more severe for some companies, with nine biopharmas reducing their staff by at least 50%, compared to four in the same period last year.

Notable layoffs in January included cuts at Allakos, Galapagos, and IGM Biosciences. Two companies, Oxular and Velia, eliminated their entire workforces due to acquisition and shutdown, respectively.

As the industry moves forward, Clouse anticipates an uptick in hiring activity in February or March, following typical pharma and biotech recruitment patterns. While he doesn't expect a significant surge in hiring throughout 2025, he remains optimistic about the potential for modest growth in the job market.