“Momentum meets caution” can describe the state of the U.S. labor market in the first quarter of 2025. Hiring has been steady, but many businesses are taking a more measured approach to talent recruitment as they navigate a rapidly evolving economic environment. Employers are still adding jobs, but with a sharper focus on expanding their bench strategically with high-priority positions.According to the latest jobs report from the Bureau of Labor Statistics (BLS), U.S. employers added 228,000 jobs in March, outperforming economists’ expectations. Separate data from the BLS shows job openings in the U.S. remain high—nearly 7.6 million at the end of February—while the quits rate that month was just 2.0%. Fewer active job seekers means less relief for the 91% of employers who said in a Robert Half survey that they’re facing challenges finding skilled talent available for hire.In this active but not overly aggressive labor market, many employers are refining their hiring strategies as they closely examine budgets and assess their long-term talent needs. Meanwhile, job seekers are approaching their searches with more intention—while staying open to roles that may not be on their shortlist but still align with their skills, experience and interests. And for some professionals quietly considering a career move, lingering economic uncertainty has prompted them to wait for the right conditions before making a change.Read Robert Half’s coverage of the March 2025 jobs report.
How are labor market trends impacting companies’ project plans?
Longer talent recruitment timelines, limited headcount growth and budget constraints have employers opting to put some planned projects on hold. In many cases, they are choosing to proceed with business-critical projects while placing lower-priority initiatives temporarily on the back burner.For employers, this trend highlights the benefits of using a flexible staffing strategy. Leveraging contract professionals, skilled consultants or a blend of both can help keep key initiatives on track without the need to hire permanent staff. This approach also helps ease the burden on existing employees who may be struggling to balance their regular responsibilities with project-related assignments.For job seekers with in-demand skill sets, being open to contract or project-based roles is a way to stay active in the labor market, gain exposure to different industries and build valuable experience. Plus, these arrangements can often lead to longer-term career opportunities.
Employer tip: stay vigilant for rising employee burnout
Many businesses are asking their teams to do more with less. But if workloads and schedules aren’t carefully managed, it can put undue strain on employees. It’s already happening in many organizations.In a Robert Half survey, 36% of professionals said they feel burned out at work, and 33% report they are burned out more now than they were a year ago. The top reason? The combination of heavy workloads and long hours, which was cited by 40% of the professionals surveyed.Employers’ inability to staff open positions in a timely manner can also contribute to employee burnout. Forty-two percent of managers responding to a separate Robert Half survey said they had seen this happen within their own organization. Other downsides of a long recruitment process include delayed project timelines (39%), decreased staff productivity (37%) and higher employee turnover (36%).In addition to reevaluating project priorities and hiring contract professionals to ease workloads, employers can consider using these strategies to help keep staff burnout at bay:Encouraging team members to take time off when neededAcknowledging and celebrating employees’ hard work and accomplishmentsCreating a supportive work environment that promotes open communicationGet more recommendations for preventing employee burnout.
Tip for job seekers: explore the option of working as a contract professional
In a labor market where full-time job opportunities may take longer to secure, contract work can offer professionals a way to earn income, build new skills, gain experience in different industries and more. Sometimes, that “more” is the chance to work on extended assignments or even land a permanent role.Candidates who want to expand their job search to include contract positions can set themselves up for success by making sure their LinkedIn profile is up to date and reflects an openness to learning about these jobs, in addition to permanent positions. They should also highlight any project-based work or specialized skills that align with in-demand roles. (Note: Robert Half’s Salary Guide highlights many of the hottest jobs, skills and industries for 2025.)Taking the initiative to connect with specialized recruiters who place contract talent can help shorten the path to finding relevant contract jobs, especially those that may not be publicly posted. As a starting point for their research, job seekers should consider visiting the websites of reputable staffing firms to explore the current listings for contract roles in their professional field or target industry.Another tip: After securing a contract job with a recruiter’s help, professionals should maintain regular communication throughout their assignment with that recruiter. They should update them on whether they are enjoying the work, express their openness to potentially extending their assignment or transitioning to a permanent position, and sharing their career goals as they evolve. To help job seekers find the right career opportunities, recruiters need to have a clear understanding of what they want.Learn how to work with a recruiter to land the best job—or best talent.
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.
