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Updated on June 11, 2025

The State of Skills-Based Hiring 2025 is live!

Alice Keeling

Read The State of Skills-Based Hiring 2025

Read about the latest trends, challenges, and opportunities shaping the way we work and recruit.

Director roles human resources

We're happy to announce the launch of our annual report – The State of Skills-Based Hiring 2025!

This is the 4th year we've done this report. We surveyed over 2,000 employers and job seekers across the US and the UK to collect some of our best insights yet.

It's an interesting, but difficult, time for hiring – AI is being used across the board and skills test adoption is up – yet the majority of employers and job seekers say it's harder to connect talent with opportunities. Read on for more data and a teaser of some of this year's headlines.

Key findings include:

  • Skills-based hiring is still on the rise. 85% of employers are using it in 2025 (up from 81% last year and 73% in 2023).

  • 7 in 10 employers are integrating AI, with 65% using it in the hiring process. 73% say AI-generated resumes are easy to spot.

  • Over half (53%) of employers have eliminated degree requirements. 89% of UK and 86% of US employers are having problems with resumes.

  • 82% of job seekers and 72% of employers agree – holistic hiring leads to better hiring outcomes. 60% say it’s more important for candidates to have them than it was 5 years ago.

A word from our CEO

Here's what TestGorilla CEO, Wouter Durville, has to say about this year's report:

“This year’s findings confirm what forward-thinking organisations already know: skills-based hiring is not just fairer, it’s smarter. It reduces mis-hires, improves retention, and is much better than traditional methods at predicting job success.

“We’re also seeing a dual shift: rising AI use paired with a growing focus on the human skills machines can’t replicate. Employers want people who can think critically, adapt, and collaborate. That’s why more are investing in tools to assess values, behaviours, and soft skills, not just technical ability. The best hiring strategies now combine objective data with a holistic view of the candidate—their skills, values, and cultural alignment.

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Ready to read it?

Click here to read the report! We've packaged it up in an interactive, easily navigable web page. Browse at your leisure or download your PDF copy here.

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