Springtime is emerging, but the “Big Freeze” remains in effect. This labor market cycle has evolved from the “Big Stay” of 2023-2024, when many workers opted for job stability in response to rising economic uncertainty. Now, an array of macroeconomic pressures—from tariff increases to stock market volatility—has both job seekers and employers in the U.S. taking a cautious view toward hiring.Data from the Bureau of Labor Statistics (BLS) shows job openings remain high—7.7 million as of early 2025. However, the voluntary quits rate is just 2.1%, indicating that fewer workers are willing to leave their current positions. Recent research from Robert Half reinforces this trend: Only 29% of U.S. workers said they plan to search for a new job in the first half of this year. That’s down from 35% in mid-2024.Hiring in the U.S. remains steady, although payroll expansion fell short of expectations in February. According to the latest jobs report from the BLS, employers added 151,000 jobs. Economists had projected gains of about 170,000 positions. Additionally, the unemployment rate increased to 4.1% in February, with the number of unemployed persons rising to 7.1 million.Read Robert Half’s coverage of the February 2025 jobs report.
How are current labor market trends impacting employers and job seekers?
Robert Half’s State of U.S. Hiring Survey, conducted in November 2024, found that 63% of managers at companies of all sizes were planning to add new permanent positions to their workforce in the first half of this year.But recent economic developments have prompted many organizations across industries to evaluate costs, leading to slower hiring processes, shifts in staffing strategies and, in some cases, workforce reductions. Employers hiring now appear to be focused primarily on staffing the most essential roles and recruiting highly specialized talent.For candidates, patience, persistence and adaptability are the keys to success in the evolving labor market. Job seekers must be prepared for extended employment search timelines and increased competition for open roles. Taking the time to tailor resumes and cover letters to specific job postings and thoroughly preparing for interviews, including by phone or video, is vital. These activities may be routine for a job search, but excelling at them can make all the difference in winning over an employer taking a cautious approach to hiring.Learn how job seekers can help speed up the hiring process.
Tips for employers: increase team communication and prioritize essential work
As businesses recalibrate their hiring plans, their current teams may start to feel the strain from handling increased workloads with limited resources. Strong leadership and clear communication can help keep employees feeling motivated and off the track to work burnout. With that in mind, managers should strive to:Check in with staff members more frequently to assess team morale, monitor workload distribution and look for signs of heightened stress. Employees who feel overextended and unsupported are at risk of disengaging, which can lead to productivity losses and higher turnover risk at a time when all hands are needed on deck.Be transparent about company performance and plans to the extent possible. Employees appreciate when their leaders communicate openly with their staff about business strategy, financial health and hiring plans. Proactively managing change, and being straightforward with staff about the organization’s goals—and their role in helping to achieve them—helps build trust and strengthen retention.Prioritize critical projects. Employers hitting the pause button on hiring plans or taking a slower approach to staff expansion will want to realign project priorities. Focusing on the most critical initiatives will help ensure that available talent is directed toward the most important work for the business, helping to keep the organization agile and efficient.If employees are stretched too thin, or the business needs access to specialized skills to complete priority projects, hiring contract professionals can be an effective way to provide relief and keep initiatives on track. Find out more about the benefits of a flexible staffing strategy.
Tips for job seekers: target high-demand fields and step up networking
For candidates with in-demand skill sets, the labor market remains ripe with opportunity. (Remember: Millions of jobs in the U.S. are waiting to be staffed, according to BLS data.) Even so, as noted earlier, all job seekers must be prepared for protracted recruitment processes and a more competitive hiring environment overall. Professionals on the job hunt should therefore consider:Stepping up professional networking. In a job market where hiring decisions are more measured, who you know can be just as important as what you know. Networking strategically online and in person can help job seekers gain industry insights and develop relationships with potential employers. The process can also set the stage for requesting informational interviews and learning about job opportunities that aren’t widely advertised.Staying open to new possibilities. Considering roles outside their current field can help candidates increase their chances of landing a job. For instance, many competencies—such as project management, data analysis, customer service, and financial planning and analysis—are valued across multiple industries. Exploring adjacent industries where hiring is robust can also prove fruitful. Finance professionals might consider roles in fintech or corporate consulting, for example, while tech workers may find opportunities in healthcare IT or cybersecurity.Embracing contract work. In a labor market where securing a full-time role can take longer than anticipated, temporary, project-based or consulting positions can help job seekers stay engaged in the workforce while laying the groundwork for the next career move. Short-term roles can offer exposure to new tools, industries and work environments, allowing professionals to develop specialized expertise that can make them even more marketable. Another plus: These arrangements can often lead to long-term engagements or permanent positions.Ready to start looking for a job? Search our current listings.
Stay on top of labor market trends in 2025—with Robert Half
View Labor Market OverviewWant more data and insights on how the U.S. hiring environment is evolving so far this year? Visit Robert Half’s Labor Market Overview page to get a snapshot view of current trends and access our expanded coverage on industries hiring, remote work statistics and trends, and more.
