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September 2025 Labor Market Update: What Employers and Job Seekers Should Know

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The Bureau of Labor Statistics (BLS) did not release its September jobs report due to the U.S. government shutdown, leaving employers and job seekers without the agency’s monthly snapshot of key labor market indicators. However, alternative data sources help paint a picture of recent trends. Proprietary data from global investment firm Carlyle Group indicates job growth was just 17,000 in September. That’s well below the 54,000 figure economists were projecting, and less than the modest 22,000 jobs that the BLS reported in August. Additionally, payroll processing firm ADP reports that U.S. private-sector employers shed 32,000 jobs in September. And the latest Job Openings and Labor Turnover Survey (JOLTS) from the BLS shows declines in both the number of hires and voluntary quits in August, continuing a pattern that’s been in motion for months. Even without the latest jobs report data, it’s clear hiring momentum is slowing, and many employed professionals are staying put. Robert Half’s research reinforces the latter trend: 73% of workers surveyed said they plan to remain in their current roles through the end of 2025. That’s bad news for employers that want to expand their teams, as it means finding skilled talent in the labor market is going to remain challenging in the months ahead.

The demand for specialized talent persists

Explore the 2026 Salary Guide Nearly a third of small business owners surveyed by the NFIB said they had job openings they could not staff in September, and more than one in five ranked labor quality as their most important problem. Research for Robert Half’s Demand for Skilled Talent report points to why. More than half of U.S. employers have consistently expanded staff levels since early 2023, with notable peaks in late 2023 and early 2025 tied to strategic initiatives and year-end workforce planning. So, even as the overall pace of hiring has slowed, demand for professionals with specialized expertise has remained steady. Findings for our 2026 Salary Guide show 84% of hiring managers are willing to offer higher salaries to candidates who possess in-demand skills. According to the guide, roles in the following areas are projected to see higher-than-average starting salary gains: AI, machine learning and data science: 4.1% Public accounting, tax, audit and assurance: 3.7% Content strategy, digital project management and marketing analytics: 3.3% Customer support and healthcare administration: 3.0% Legal contract management: 2.7% Compensation and benefits: 2.4%

Employer insights: Where to double down now

Economic uncertainty has tempted many organizations to put workforce strategies on hold. But now is the time to reinforce the fundamentals that can help strengthen teams and position businesses for what’s ahead. Employers should consider amplifying efforts to: Build robust talent pipelines Even in a cautious hiring climate, skilled professionals remain in demand—and competition can escalate quickly when the right role opens. Continue cultivating relationships with prospective candidates through alumni networks, industry associations and trusted staffing partners. A healthy talent pipeline helps ensure the organization can act quickly when critical needs arise. Streamline hiring and stay competitive Lengthy hiring processes can often result in losing top candidates—and that’s true in any labor market. Align decision-makers early, distinguish must-have from nice-to-have skills, and keep the interview process efficient. Equally important, be ready to move swiftly to present compelling offers to top hires. Focus on retention of valued talent When conditions are uncertain and the business is taking a more measured approach to hiring, keeping valued team members motivated becomes even more critical. Holding regular career conversations, reviewing total compensation and ensuring employees can see clear paths for advancement are all strategies that can keep top performers feeling engaged and satisfied. Need to hire skilled talent? Learn about Robert Half’s innovative hiring solutions.

Job seeker insights: How to stay proactive in a shifting labor market

A slowing hiring environment can feel like a cue to hold back on job search plans, but sitting on the sidelines could also lead to missing out. Many employers continue to be on the lookout for specialized talent. Being alert and proactive helps candidates stay ready to move fast when opportunities arise. Step up efforts to make connections Building on the point above, it’s important for job seekers not to assume the market has gone quiet. Businesses across industries are still hiring talent for essential roles and continue to report challenges in finding the skilled candidates they need. To increase their visibility to potential employers, candidates should focus on nurturing their networks and strengthening their professional presence online. Establish a relationship with a recruiting firm Specialized recruiters can be valuable advocates and guides for job seekers in any labor market. Partnering with a reputable recruiting firm can help professionals connect with employers seeking their skills and experience and discover opportunities that aren’t advertised. Recruiters can also help candidates refine their resumes, prepare for interviews and find contract job opportunities. Looking for full-time or contract roles? Search our current job listings.

The message for employers and candidates: Remain flexible

Hiring may be cooling, but in many organizations, the need to get work done is as urgent as ever. To meet critical deadlines and stay agile, many companies are leaning on skilled contract talent. Robert Half’s research shows that 67% of employers plan to increase contract hiring in the second half of 2025, citing staffing flexibility, cost savings and access to expertise as key drivers. The upside of this trend for skilled professionals on the job hunt is that contract roles can help them stay active in the market, build experience in new industries and potentially create pathways to permanent opportunities. In the months ahead, expect a focus on flexibility—in staffing and job search strategies—to remain one of the most effective ways for employers and candidates to navigate a challenging labor market.

Stay informed about the latest labor market trends—with Robert Half

View Labor Market Overview Want more data and insights on how the U.S. hiring environment is evolving in the second half of 2025? Visit Robert Half’s Labor Market Overview page for details on current hiring trends and to access our expanded coverage on industries hiring now, hybrid and remote work statistics and trends, and more.