Welcome to the Q2 2025 Edition
In a rapidly evolving labor market, staying ahead requires timely data, sharp analysis, and proactive solutions. The IAWP Workforce Insights & Action Brief delivers curated intelligence to help workforce professionals, employers, and partners navigate current trends, challenges, and opportunities.
Our mission: Data-driven insights. Actionable strategies. Workforce excellence.
🔍 Job Openings and Labor Turnover Survey (JOLTS): High Openings, Low Hires, and Rising Worker Mobility
Source: U.S. Bureau of Labor Statistics, May 2025
Job Openings: 7.8 million — a slight increase from April, signaling strong demand.
Hires: Declined to 5.5 million, highlighting a growing gap in talent matching.
Quits Rate: Increased to 2.1%, suggesting worker confidence and churn.
Layoffs: Remain historically low, reflecting employer caution.
“Hiring is subdued, but low layoffs mitigate concerns.” — Nancy Vanden Houten, Oxford Economics
What This Means
The labor market reflects a paradox: employers are struggling to fill roles, while workers are increasingly mobile. The disconnect between demand and supply is less about availability—and more about alignment.
How Workforce Professionals Should Respond
Promote Skills-Based Hiring: Encourage employers to prioritize core skills over degrees to expand applicant pools.
Enhance Career Navigation: Offer tailored career coaching to support job seekers exploring transitions or upskilling opportunities.
Modernize Job Descriptions: Collaborate with employers to write clear, realistic postings that attract a wider range of candidates.
Support Internal Mobility: Help employers identify internal talent for open roles, reducing time-to-hire and boosting retention.
📊 Employment Situation: Steady Growth with Uneven Recovery
Source: U.S. Bureau of Labor Statistics, June 2025
Payroll Growth: +139,000 jobs in June, led by healthcare (+62,000) and hospitality (+48,000).
Unemployment Rate: Holding at 4.2%.
Labor Force Participation: Stagnant at 62.5% — still below pre-2019 norms.
Sector Weaknesses: Government employment experienced notable declines.
“Job growth is stabilizing, not retreating—this is a soft landing.” — Michael Gapen, Chief U.S. Economist, Bank of America
What This Means
The job market remains resilient but uneven. While key sectors are growing, participation remains lower than needed to sustain broad recovery.
How Workforce Professionals Should Respond
Re-engage Marginalized Workers: Reach out to older workers, caregivers, individuals with disabilities, and the long-term unemployed to support their return to work.
Promote Apprenticeships and Work-Based Learning: Help job seekers earn while they learn, especially in health care, skilled trades, and clean energy.
Use Labor Market Data to Inform Programs: Rely on regional LMI to guide reskilling and workforce service design.
Address Participation Barriers: Collaborate with community groups to solve transportation, childcare, or digital access challenges that prevent full workforce entry.
📈 Market Signals: A Shifting Labor Landscape
Additional Indicators to Watch
Quits Still Elevated: Employers face persistent churn.
Jobless Claims: Continuing claims are rising, indicating friction in re-employment.
Downward Revisions: Earlier employment reports have been revised downward, suggesting the labor market may be softer than it first appears.
“This job market is weaker than it appears.” — The Wall Street Journal, July 1, 2025
What This Means
The economy continues to grow—but with increasing signs of instability. Mismatches between available jobs and qualified workers are driving inefficiencies across sectors.
How Workforce Professionals Should Respond
Focus on Transferable Skills: Help job seekers reframe prior experience for new industries using tools like O*NET and CareerOneStop.
Track Displacement Trends: Monitor WARN notices and industry data to anticipate layoffs and deploy rapid response strategies.
Build Multi-Sector Partnerships: Convene employers, educators, and workforce agencies to co-design talent pipelines.
Invest in Digital Literacy and Tech Upskilling: Ensure all job seekers have access to digital tools and foundational tech training needed for today’s labor market.
📌 Closing Thoughts
The Q2 2025 labor market offers a mix of strength and strain:
✅ Job openings remain high.
⚠️ Hiring continues to lag.
📉 Workforce participation has stalled.
📊 Growth is uneven but resilient.
“Demand for talent hasn’t vanished—it’s evolving.” — Economist, June 2025
To meet this moment, workforce professionals must go beyond monitoring trends—we must shape them. The choices made today will determine whether talent shortages persist or pipelines are rebuilt, whether opportunity narrows or expands.
This is a pivotal time for leadership, creativity, and action.
✅ Redesign pathways
✅ Strengthen partnerships
✅ Champion inclusive growth
The workforce of tomorrow is being built today—by you.