Workforce@NOVA

February 18, 2025 / @NOVA

On February 19, the Labor Market Intelligence (LMI) team at NOVA will release the 2024 Northern Virginia Workforce Index. This report, a collaboration between NOVA and NVC (formerly the Northern Virginia Chamber of Commerce), details the findings of an annual employer survey used to gain insights into the local labor market.

Survey Overview
The 2024 survey, which ran from Aug. 23 – Oct. 30, had 267 responses from local business leaders representing businesses in all size categories and industries. In addition to questions about hiring, professional development and education, this year’s survey also included a number of questions about businesses’ use of artificial intelligence (AI).

Use of Artificial Intelligence in the Workforce
The largest change to the Workforce Index was the inclusion of several questions about the use of AI in the region. We found:

  • Only 44% of businesses have used AI to support their operations in the last year. However, use of AI varies by industry sector and business size; AI use is highest in the financial/intellectual services sector and lowest in the social services sector.
  • While the use of AI is not yet widespread, 59% of businesses anticipate increasing their use of AI in the next one to three years.
  • AI is used by businesses primarily for automating basic tasks and essential processes and brainstorming ideas.
  • The primary concern for businesses with respect to AI is the protection of sensitive information, with 51% citing this as a significant concern. However, businesses are less concerned about AI’s potential to replace segments of their workforce, with half reporting they are not at all concerned.
  • About a third of businesses consider an applicant’s ability to use AI when making hiring decisions.

Other Insights from the Report

  • Hiring continues to be difficult for businesses, with 41% reporting it was harder to fill job openings in the last 12 months than in the previous year. The primary challenges businesses face are high labor costs and a shortage of interested and available candidates.
  • Businesses are still relying on traditional hiring methods such as internal recruitment, employee referrals and online job boards, with 70-90% reporting using one or more of these methods. Work-based learning methods such as internships and apprenticeships continue to be underutilized.
  • Only 34% of businesses reported employing any interns over the past 12 months, with most of these businesses employing five or fewer.
  • A quarter of businesses still require at least a bachelor’s degree when hiring for entry-level positions. In addition, 44% of businesses are rarely or never willing to accept equivalent experience in lieu of a degree.

Learn More
The 2024 Northern Virginia Workforce Index will be available starting Wednesday, Feb. 19, on both NVC’s website and NOVA’s LMI webpage.

Read the full report. For questions or to provide feedback about the Workforce Index, please contact the LMI team.

—Steve Partridge, VP of Strategy, Research and Workforce Innovation