As summer winds down, the U.S. labor market is proving hard to define. Job openings have dipped from recent highs, certain sectors are seeing layoffs and hiring timelines are stretching out. Yet the demand for professionals with specialized skills persists, and unemployment remains historically low.In July, the Bureau of Labor Statistics (BLS) reported an unemployment rate of 4.2% overall and just 2.7% for college-educated professionals. Other data from the agency shows job openings averaged 7.4 million in June—down modestly from May, but still well above pre-pandemic norms. The hiring rate also held steady at 3.3%, signaling that employers are still competing for skilled talent even as hiring momentum eases in some areas.Tech unempoyment is under 3%, with employers continuing to hire for roles in AI, cloud computing and cybersecurity. Healthcare has been a robust and reliable engine of job growth for many months, with strong demand for both clinical and nonclinical professionals. In finance, there is ongoing demand for financial analysts, FP&A professionals, internal auditors, compliance officers, and other specialists.Looking behind the numbers, there are deeper patterns reshaping how organizations attract, develop and retain talent—and how professionals chart their career paths. Employers and job seekers will want to keep the following four trends in focus as they navigate the labor market through the end of this year.
1. Skilled talent shortages continue to work against employers’ hiring plans
View the report nowDespite signs of cooling in the labor market, Robert Half’s research shows businesses of all sizes plan to expand their teams in the second half of 2025. However, many employers are struggling to find skilled candidates. That challenge is intensifying as AI capabilities, data literacy and familiarity with evolving regulatory frameworks are becoming baseline requirements for many roles. The demand for soft skills—including communication, adaptability and critical thinking—also continues to rise.Employer tips: Focus on potential and trainability when evaluating candidates. Use targeted onboarding and development programs to build the precise capabilities your business needs, and create clear internal career pathways to help retain the talent you’ve invested in.Job seeker tips: Emphasize your ability to learn quickly, and your commitment to growing skills and knowledge continuously. Share examples of building new expertise—whether through certifications, cross-training or on-the-job experience—and highlight achievements that show you can deliver results even when coming into a new role with skill gaps to bridge.See Robert Half’s midyear Demand for Skilled Talent report for exclusive data on U.S. hiring trends.
2. AI and automation are redefining roles—not replacing them
Many organizations are still in the early stages of AI adoption, using the technology to streamline workflows, support decision-making and handle high-volume, low-complexity tasks. But the more profound shift is happening at the role level: As AI becomes more integrated into daily work, jobs are being redefined to combine technical capabilities with human judgment.The pace of that transformation often depends on company size. Small and midsize businesses tend to adopt automation more selectively, using AI capabilities for specific tasks or teams. For larger enterprises, AI adoption is rarely simple. Governance, compliance and workforce readiness add layers of complexity as these businesses work to reengineer their workflows at scale.Employer tips: Identify where AI can automate routine or data-heavy tasks, and redesign roles so employees can focus on high-value work—such as strategy, innovation and complex decision-making. Provide targeted training to help teams apply AI effectively and responsibly.Job seeker tips: Show how you’re using AI to solve problems, not just follow prompts. Highlight projects where AI tools helped boost your productivity, accuracy or creativity. Also, be ready to explain how you promoted quality, relevance and responsible use. Staying current on AI trends in your field will help you anticipate role shifts and stay ahead of the curve.Get practical strategies to help ease the AI adoption journey.
3. Hybrid work is amplifying the importance of soft skills
Remote and hybrid work are now commonly supported in many organizations. But making these arrangements successful still takes deliberate effort, especially when it comes to company culture, cohesion and collaboration. Sustaining a strong sense of team in a distributed work environment requires clear communication, active engagement and adaptable leadership.Succeeding at all of the above is well worth it for employers seeking to hold on to valued talent in a competitive labor market. Robert Half’s research shows that 73% of U.S. workers plan to stay in their current roles through the end of this year, primarily to preserve their current level of flexibility.Employer tips: Identify which types of work truly benefit from in-person collaboration, and which can be handled (and managed) just as effectively remotely. Then, invest in tools, workflows and leadership development that helps build connection, accountability and trust across distributed teams.Job seeker tips: Showcase your ability to thrive in a hybrid work environment. Use examples—such as how you’ve contributed to the success of cross-functional remote projects or helped improve asynchronous collaboration with teammates—to demonstrate strong communication, follow-through and engagement.
4. Internal talent development is becoming a higher priority
The shift toward reskilling and internal mobility is both strategic and practical. By developing their existing workforce, companies can staff critical roles faster and reduce hiring costs—while also boosting employee retention and building future-ready teams.In the first half of 2025, many organizations expanded learning and development programs focused on digital skills, leadership readiness and cross-functional collaboration. Some have also stepped up efforts to help employees visualize career paths and long-term growth within the company.Employer tips: The payoff of investing in employees’ development is twofold: stronger talent retention and a workforce better prepared to meet future demands. Internal mobility movements, from job rotations to promotions, also supports succession planning and reduces the risk of skill shortages derailing critical projects and business priorities.Job seeker tips: Reskilling and upskilling are key to building long-term career value. Seek out employers that actively invest in employee development through training, certifications and stretch assignments. Also, take the initiative to grow your capabilities independently, especially in areas aligned with emerging business needs, to show you are adaptable and forward-looking.Learn how career conversations can benefit both employers and employees.
More labor market trends to monitor in the months ahead
Access the Salary GuideExpect these emerging trends to impact companies’ approaches to talent recruitment and management through the end of this year, and likely, beyond:Return-to-office strategies will sharpen: Many organizations are already moving from loose flexible work guidelines to clear expectations on office attendance—specifying how many days, which roles require presence and how exceptions work. Decisions about the “where” of work are increasingly guided by data on productivity, collaboration and engagement, with some companies targeting in-person days for high-impact activities like brainstorming or client meetings, while others call for more regular attendance to reinforce company culture.Workforce planning will take the long view: More organizations are approaching talent recruitment like a long-term investment. They are identifying the skills they will need in the next three to five years and building pipelines through succession planning, targeted upskilling and other strategies. Workforce analytics tools are helping employers to forecast turnover, pinpoint skills and knowledge gaps, and guide proactive training before shortages emerge.Interim and project-based hiring will continue to expand: Economic uncertainty and specialized skill demands are prompting many companies to lean more on contract professionals. Businesses are seeking flexible talent solutions for projects ranging from enterprise system implementations to cybersecurity initiatives. And according to Robert Half’s research, 71% of professionals are open to contract work, which can offer them access to new industries, faster skill development and a potential path to permanent employment.Compensation conversations will evolve: Pay transparency is gaining momentum, with some states requiring salary ranges in job postings and more employers viewing this approach as a source of competitive advantage. Beyond base pay, total compensation packages—bonuses, benefits, wellness programs, flexible schedules and development opportunities—are becoming central to candidate decisions. Regular pay reviews are also helping companies strengthen retention and keep compensation levels aligned with market expectations.Explore salaries and trends by profession in Robert Half’s latest Salary Guide.
Continue to stay in step with labor market trends—with Robert Half
Go to Labor Market OverviewThe second half of 2025 will demand greater agility when navigating the labor market. For employers, that means aligning talent strategies with evolving expectations around work flexibility, compensation and skill development. For professionals, it’s about staying market-aware and ready to grow—whether through contract roles, internal moves or upskilling opportunities.In the months ahead, changes at the BLS could affect how—and when—key labor market data is reported. That makes it even more important for employers and job seekers to gather data and insights from multiple reliable sources to develop a complete view of hiring conditions.Industry reports, recruiting trend analyses and internal workforce metrics can all provide valuable context. So, too, can Robert Half’s Labor Market Overview page. Check out this resource to access expanded coverage on industries hiring, what’s driving employers’ hiring challenges and more.
