2025 Q4 Job Market Report: Positive Signs Emerge for Job Seekers

There were some positive signs for biopharma job seekers in the fourth quarter, based on BioSpace data. Although jobs live on the BioSpace website dipped 14% year over year, they rose 10% quarter over quarter, the only quarter-over-quarter increase in 2025. There were also increases in two key disciplines from Q3 to Q4: science/research and development (14%) and clinical (23%).

Also noteworthy: Although average jobs live on BioSpace dropped 23% year over year, they inched up 4% from the third to fourth quarter, the only quarter-over-quarter increase in 2025 and the first quarter-over-quarter increase since Q3 2024.

There was encouraging news regarding staff cuts as well, according to BioSpace tallies.* Although made or projected biopharma layoffs jumped 47.1% year over year in 2025, from 29,017 to 42,701 people, the number of affected employees dropped year over year during the fourth quarter, from 6,814 to 3,603. In addition, Q4 had the fewest people impacted of any quarter last year.

A Challenger, Gray & Christmas report for all industries released Jan. 8 also shared promising layoff data. It noted that U.S.-based employers’ announced job cuts for December—35,553—dipped 8% year over year. That number was the lowest monthly total since July 2024, when 25,885 people were affected.

Other positive Q4 biopharma developments include an October announcement that Massachusetts tax incentive awards totaling $17.3 million were expected to help 25 companies create 806 life sciences jobs by Dec. 31, 2025. The largest award, $4.85 million, went to Medtronic to add 220 positions in Billerica.

Additional developments late last year that could positively affect biopharma hiring plans moving forward include the S&P 500 Biotech Index, or XBI, rallying in the second half of 2025. That news caught the attention of industry analysts. At the end of the year, Mizuho Securities declared, “Biotech is making money again,” while Truist Securities noted that it expected the rally to continue into 2026.

Before 2025 closed out, news broke that Aktis Oncology would become the first biotech initial public offering of 2026. The company expected to raise about $318 million.

While there were encouraging signs in Q4 for biopharma professionals seeking employment, recent U.S. Bureau of Labor Statistics (BLS) reports highlighted issues in the overall job market that could affect those eyeing other industries. On Jan. 9, the agency reported that in December, the U.S. economy added 50,000 jobs, falling short of expectations of around 55,000. In addition, BLS revised the November number from 64,000 to 56,000.

Regarding job openings, on Jan. 7, the agency reported that there were 7.1 million in November, a 14-month low and down 303,000 since October and 885,000 over the year.

As to unemployment, BLS reported Jan. 9 that there were 7.5 million unemployed people (4.4% of the labor force) in December, down slightly from 7.8 million (4.5%) in November. The long-term unemployed—those jobless for at least 27 weeks—represented 26% of all unemployed people last month, up from 24.4% in November and 22.7% in December 2024.

In their analysis of the Jan. 9 BLS report, Wells Fargo economists wrote, “The cooling in the labor market still appears to be proceeding, but at a gradual and orderly pace.”

Looking at what 2026 has in store for biopharma job seekers, the year kicked off with positive news related to industry health and hiring.

• IPO activity continued this month, with Veradermics and Eikon Therapeutics announcing impending IPOs.
• Johnson & Johnson announced it expects to create 500 jobs at a new drug product manufacturing facility in Wilson, North Carolina, 40 miles east of Raleigh. The production plant will focus on delivering oncology and neurological disease treatments.
• AbbVie announced it will commit $100 billion to U.S. research and development and capital investments, including manufacturing, over the next 10 years. According to the company, the commitment helped it secure an exemption from tariffs and future price mandates, allowing it to “collectively move beyond policies that harm American innovation.”

As to what’s ahead for layoffs, two biopharma industry experts recently told BioSpace that they don’t expect cuts to continue at the same pace in 2026 as in 2025. Audrey Greenberg, venture partner and chair at Mayo, said broad-based increases are less likely, while Eric Celidonio, founder and managing partner of biopharma recruiting firm Sci.bio Recruiting, predicted a leveling off. Celidonio also expects a modest headcount increase due to factors including a new climate of fiscal discipline and growth in areas like data science, computational biology, and AI and machine learning.

*Layoff numbers exclude contract development and manufacturing organizations, contract research organizations, tools and services businesses and medical device firms. To tally the cuts, BioSpace compiles data for known workforce reductions. The number of employees affected is identified or estimated primarily through information in company press releases, Worker Adjustment and Retraining Notification (WARN) Act notices, SEC filings and other media outlets’ reports or via confirmation from company officials.

Not all companies disclose downsizing, and some share only the percentage of staff affected. Some biopharmas provide total numbers retrospectively rather than disclosing individual workforce reductions as they happen.

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