The U.S. labor market is showing signs of resilience in early 2025. Job growth has moderated, but hiring in many industries remains steady.The January jobs report from the Bureau of Labor Statistics (BLS) shows employers added 143,000 jobs last month. That was short of economists’ expectations. However, the agency’s revisions to November and December’s data added 100,000 more jobs than initially reported, suggesting the labor market’s underlying strength.The national unemployment rate dipped slightly to 4.0%, marking its lowest point since May 2024. For college-degreed professionals aged 25 and older, unemployment is even lower, at 2.3%. Other BLS data shows highly skilled jobs in many professional fields—from finance and accounting to technology to administrative and customer support—have even lower unemployment rates.There are also signs of change in the labor market. Voluntary quits are trending downward, according to the latest Job Openings and Labor Turnover Summary (JOLTS) from the BLS. Robert Half’s research shows only 29% of workers plan to search for a new job in early 2025, down from 35% in mid-2024. Satisfaction with compensation, manageable workloads and a positive workplace culture were cited by professionals as top reasons for staying put.View how workers’ job search plans have changed over time.
What do these labor market trends mean for employers and job seekers?
The cooling pace of job switching in recent months signals a more stable workforce. But for employers, it also means hiring may become even more competitive, especially for professionals with in-demand skills. Research for Robert Half’s Demand for Skilled Talent report found that 91% of employers are already facing challenges in locating skilled professionals for hire.Active job seekers, meanwhile, may find the hiring process takes longer than they would like. Even though employers in many industries entered 2025 in a hiring mode, economic uncertainty and the transition to a new administration may prompt some businesses to take a more selective approach to talent recruitment in the months ahead. That said, a recent Robert Half survey found that 63% of employers plan to add new permanent staff in the first half of this year.
Tips for employers: prioritize retention and speed up the hiring process
The challenge for employers isn’t just finding skilled candidates—it’s convincing them to make a move. Businesses also need to focus on keeping valued talent feeling satisfied and invested in so they won’t want to look elsewhere for opportunities. To make progress on both fronts in this labor market, employers should:Enhance retention strategiesInvesting in employee retention doesn’t just help employers reduce disruptive and costly turnover. It helps them foster an engaged workforce, preserve institutional knowledge and maintain a competitive edge. To enhance retention, businesses need to:Regularly review compensation packages to confirm they reflect current trends for the market and industry. See Robert Half’s Salary Guide for insight.Consider offering other financial incentives, such as equity options, performance-based bonuses or retention bonuses. Find out how to structure retention bonuses.Prioritize employee recognition by celebrating achievements, big and small, to help staff feel valued. Learn about best practices for employee recognition.Encourage a healthy work-life balance with flexible schedules, hybrid or remote work options, and wellness programs. Get strategies to improve employees’ work-life balance.See our guide on the best employee perks and benefits for 2025.Streamline the hiring processA long recruitment process can deter top candidates—and cause employers to miss out on top talent.Make the effort to simplify application procedures, ensure interview panels are efficient and provide timely feedback to candidates. Encourage hiring managers to actively promote the company’s culture as well as the available position during interviews. Set managers up to make swift, informed decisions by clearly defining role requirements and aligning on key selection criteria upfront and using a structured interview process.Employers should also consider enlisting help from a talent solutions firm. Working with specialized recruiters can save time and effort when speed-to-hire is critical, and help avoid costly hiring mistakes.Discover the benefits of building a relationship with a reputable staffing firm.
Tips for job seekers: target high-demand fields and step up networking
Fewer professionals are actively switching jobs, but competition for high-value roles remains intense. To stand out, candidates should choose a resume format that best showcases their experience, tailor their resume and cover letter to each job posting, and emphasize in-demand skills like technology proficiency and AI literacy. (These are best practices for job seekers regardless of labor market trends.)Additionally, candidates should consider:Focusing on growing industries and top jobsJob seekers may want to look first to sectors with strong growth prospects as a way to jump-start their search process. Robert Half’s research suggests healthcare, tech and IT, and financial services are among the industries hiring now. The latest jobs report from the BLS found employers in those three sectors expanded payrolls in January. Private education and health services, as an example, added 61,000 jobs.As for the top jobs employers are recruiting for, our research shows they include these positions:Software engineer/developerCustomer service specialistStaff accountant and senior accountantMarketing managerSystems administratorReady to start looking for a job? Search our current listings.Network strategicallyMany job opportunities arise through professional connections. Job seekers should make the effort to attend relevant industry events and:Use online platforms like LinkedIn to build relationships with industry peers and potential employers.Get best practices for building a LinkedIn profile.Request informational interviews to learn about target employers and potentially open doors to unadvertised opportunities. Learn more about the value of informational interviews.Look to alumni networks, community groups and professional associations as potential networking resources. Use this list as a starting point for research.Focus on building a personal brand at work. See these six strategies for success.Make the most of professional networking by knowing these do’s and don’ts.
Stay informed about the labor market—with Robert Half
View Labor Market OverviewThe 2025 labor market is only beginning to take shape. But Robert Half is ready to track its evolution and equip employers and job seekers with the knowledge they need to navigate it successfully. Want more data and insights on the current hiring environment? Visit our Labor Market Overview page to understand how the hiring market is trending, and get quick access to a host of resources, from our monthly jobs report coverage to our data-driven analysis of employers’ hiring challenges.
