Small businesses are experiencing significant growth in hiring for 2025.
Small businesses may offer job opportunities that you shouldn't overlook if you're searching for a new job this year.
In 2024, approximately 37% of full-time job postings on Handshake were for organizations with 250 or fewer employees, according to a recent report.
And those job openings are seeing increasing interest from young job-seekers.
The rate of applications to small businesses on Handshake has grown significantly faster than the rate of applications to large companies over the past three years.
The percentage of applications submitted on the platform that went to organizations with 250 employees or fewer increased from 32% in the previous year to 39% between September 2023 and September 2024, which is a 7% increase.
More young workers are applying to small businesses
Recent grads may be prioritizing smaller employers over big-name companies due to a tougher job market, especially for entry-level professionals, according to Christine Cruzvergara, chief education strategy officer at Handshake.
In recent years, big tech companies have faced criticism for their mass layoffs and return-to-office mandates, leading to a decline in interest among early talent.
On average, small businesses received 44 applications per opening in the past year, compared to 40 applications per vacancy at larger companies.
Those who want to pursue careers in arts and design, communications, and computer science are more inclined towards applying to smaller companies.
How to stand out and get hired at a small company
In the past year, marketing and media, professional services, technology, and financial services saw a significant increase in small business job postings, with marketing and media accounting for 61%, professional services for 45%, technology for 45%, and financial services for 42%.
Across the country, small businesses are hiring in both major metros and smaller cities, such as Grand Rapids, Mich.; Lincoln, Neb.; and Missoula, Mont., according to Handshake.
To stand out as a candidate at a small company, it is crucial to follow many of the same job-search rules, according to Cruzvergara.
"Ensure that your application materials demonstrate your thorough research and genuine interest in working for the company."
In your application materials, interview, and questions for your interviewer, showcase your eagerness to work for the company.
"She remarks that the smaller business can benefit from having a stronger identity among its employees, who often seek colleagues who genuinely care about being part of the organization and feel proud to work there."
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