June marked another solid month of job growth for the U.S. economy. Data from the Bureau of Labor Statistics (BLS) shows U.S. employers added 147,000 positions, surpassing economists’ forecasts. At the industry level, hiring momentum was robust in sectors like government (+73,000 jobs) and private education and health services (+51,000 jobs). Financial activities and information were among the industries that saw modest gains last month, with each adding 3,000 jobs.The national unemployment rate in June edged down slightly to 4.1%, while the rate for college-educated professionals dropped to 2.5%—signs that the demand for skilled talent persists. Further evidence of that demand is found in the latest Job Openings and Labor Turnover Summary (JOLTS) from the BLS, which shows job openings in May climbed to 7.8 million, the highest level since November 2024. The quits rate also ticked up to 3.3 million, indicating that many workers remain confident about pursuing new opportunities despite uncertain economic conditions.Meanwhile, many employers are grappling with longer hiring cycles. In a Robert Half survey, 93% of hiring managers said the recruitment process takes more time now than it did just two years ago—and 30% admitted to making a hiring mistake during that period. The leading causes for the delays? Cumbersome application reviews, protracted reference and background checks, and drawn-out interview coordination.
An increased focused on deliberate hiring and growing internal talent
Contributing to the slower pace of hiring is a conscious shift among employers toward a more intentional approach toward talent recruitment. Even as economic sentiment improves—51% of CEOs see better conditions ahead—there’s a clear sense of restraint in how companies are expanding their teams. Rather than rushing to hire, employers are taking extra time to identify the best candidate for each role. Many firms are leaning more on contract talent to keep work moving ahead as they vet permanent hires.At the same time, employers are rethinking how they evaluate talent, generally, and are shifting toward a skills-first approach that emphasizes competencies and adjacent skills over credentials. This mindset is also reshaping how companies define roles and invest in team development.From microlearning pods—small, targeted modules designed to deliver bite-sized skills training—to cross-functional stretch assignments, many employers are focusing more on upskilling to build the talent they need internally while giving valued team members stronger reasons to stay for the long term.
Retention, growth and the power of mid-year check-ins
The emphasis on internal growth is also influencing how companies are approaching employee engagement and career planning. Mid-year performance reviews, for example, have become a strategic touchpoint—providing an opportunity to align employees’ career goals with evolving business needs while strengthening retention.Increasingly, these and other career conversations are evolving into collaborative planning sessions that reflect the diverse ways people define career success. To make these check-ins count, managers should encourage employees to come prepared with specific goals—whether that’s a promotion, new skills or better work-life balance. When aspirations are clearly communicated, leaders can better tailor support, such as through targeted training or mentorship.
Tips for employers: Make every hire count
The challenge for many employers navigating the current labor market is finding ways to speed up hiring while avoiding hiring mistakes. These strategies can help with attracting—and retaining—top talent:Simplify recruitment stepsReview the company’s hiring process and identify and eliminate bottlenecks. Set firm timelines for staffing critical role and empower hiring managers to act decisively.Rethink traditional schedulesGiving employees more autonomy over when and how they work can boost productivity and engagement, as well as retention.Keep employee well-being in focusEncourage team members to take vacations and other paid time off to help them recharge and stay off the path to burnout.Need to hire seasonal employees? Robert Half has you covered.
Tips for job seekers: Keep up with what’s new—and prepare for what’s next
Hiring remains steady in several key industries, but landing the right role can require patience and persistence. Candidates can set themselves apart by underscoring to hiring managers the specific ways they can add value to an employer. Other strategies for success in this competitive labor market include:Exhibiting future-readinessHighlight experience in hot and emerging skills areas like AI or data analytics. Many employers are looking specifically for tech-savvy and adaptable employees.Embracing continuous learningWhether through boot camps, certifications or hands-on projects, ongoing skills-building can help job seekers stay competitive—and confident in conversations with potential employers.Taking advantage of the summer slowdownCandidates can use the summer months, when the pace of business tends to be slower, to network professionally, update their resume and portfolio, or pursue interim job opportunities to earn experience and grow skills.Learn how specialized recruiters can help you find new career opportunities, faster.
How employers and job seekers can navigate the labor market in Q3
According to research for Robert Half’s newly updated Demand for Skilled Talent report, more than half of U.S. employers across industries like technology, finance and accounting, and human resources plan to expand their teams in the second half of 2025. This hiring momentum spans organizations of all sizes, driven by regulatory demands, digital transformation initiatives, and business growth.To stay ahead, employers should move now to adopt flexible talent strategies and prioritize proactive workforce planning so they can staff appropriately to meet immediate needs while preparing for emerging demands. For professionals, staying alert and ready to act is essential, as new job opportunities may emerge quickly. Candidates with in-demand skills and competencies will be well-positioned to compete for top roles and compensation.
Stay informed about the latest labor market trends—with Robert Half
View Labor Market OverviewWant more data and insights on how the U.S. hiring environment is evolving in 2025? Visit Robert Half’s Labor Market Overview page to get a snapshot view of current hiring trends and access our expanded coverage on industries hiring, remote work statistics and trends, and more.
