USA

The US employment landscape has undergone significant shifts recently driven by political and economic shifts, technological/AI, and evolving worker preferences (especially related to friction of return to work/remote work). These shifts, alongside executive orders impacting government work, global relations, and DEI-related policies, continue to influence the broader job market and create an atmosphere of uncertainty and adjustment. Career colleagues are fast at work to identify and synthesize impact, and support impacted workers as dynamics change, addressing the new skills and flexibility required for workers to thrive in the complex and shifting environment (globally).

Employment Trends

• Job Growth & Unemployment Rates- January 2025: US job market has shown steady growth with a monthly average of 200,000 new jobs added over the past four months. Growth has slowed slightly compared to previous years. Unemployment rates have remained low at 3.6%, though some sectors, such as retail and hospitality, are experiencing slower recovery due to shifts in consumer behavior and inflation.
• Sector Shifts- Tech sector has experienced a bit of a plateau, following significant layoffs in late 2023. Industries like healthcare, renewable energy, and professional services continue to expand rapidly. Notably, healthcare occupations are seeing growing demand due to an aging population, while green energy jobs had been on the rise by increased government investments in clean energy initiatives with new uncertainty about sector growth with the new administration
• Labor Shortages & Continued Gig Economy- Labor shortages persist, particularly in skilled trades and frontline positions. This has led to a rise in gig and freelance work, especially in fields like software development, digital marketing, and logistics. This trend continues, supporting the growth of a hybrid workforce, blending traditional full-time employment with more flexible, contract-based opportunities.

Events Impacting the Job Market

• Uncertainty and Instability due to Executive Orders- Recent executive orders from the federal government have introduced a layer of uncertainty within the public and private sectors. Additionally, ongoing shifts in government policies, including regulatory changes, continue to create market uncertainty. Businesses, especially those relying on federal contracts, face challenges in navigating these executive orders. The evolving political landscape, coupled with changing governmental priorities, is causing some companies to hesitate in making long-term hiring commitments. For job seekers, this creates a sense of instability.