Employment Update

August 2025

The American employment landscape is constantly changing. Keep up-to-date with the most recent trends with our Monthly Employment Update. Figures and statistics sourced from the Bureau of Labor Statistics and the American Staffing Association.

  • Acara Icon Workforce

    Unemployment changed a little at 4.3%

    The unemployment rate changed a little at 4.3 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in health care and social assistance. Federal government continued to lose jobs.

  • Acara Icon briefcase

    Long-term unemployed increased month-to-month

    In August, the number of long-term unemployed (those jobless for 27 weeks or more) increased by 385,000 for the year, to 1.9 million. The long-term unemployed accounted for 25.7 percent of all unemployed people.

  • noun worker 7521322 EA0029

    Labor force participation changed little

    In August, the labor force participation rate changed little by increasing to 62.3 percent.

  • Acara Icon earnings

    Average hourly earnings increased by $0.10

    Average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3 percent, to $36.53 in August. Over the past 12 months, average hourly earnings have increased by 3.7 percent. In August, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4 percent, to $31.46.

  • Acara Icon Rejected

    Number of people working part time for economic reasons changed a little from 4.7M

    The number of people employed part time for economic reasons, at 4.7 million, changed little in August. These individuals would have preferred full-time employment but were working part time because their hours had been reduced, or they were unable to find full-time jobs.

  • Icon showing outlines of a home, dollar sign, and a plant

    People not in the labor force who currently want a job was essentially changed little from last month

    In August, the number of people not in the labor force who currently want a job was little changed at 6.4 million. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job.

  • Acara Icon temp

    Temp penetration rate decreased

    Temporary help employment decreased to 1.57% of total nonfarm employment in August.

  • Acara Icon people circles

    Temp help jobs decreased

    Temporary help jobs in August increased to 2.9%, seasonally adjusted, from last month.

  • Acara Icon payroll

    Nonfarm payroll employment changed little

    Total nonfarm payroll employment changed little in August (+22,000).

    In August, employment continued to trend up in:

    -healthcare (+31k)
    -social assistance (+16k)

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Industry Trends – The "Great Tech Hiring Freeze" Continues

Acara summarizes the latest industry trends each month to keep you informed as you make decisions about the future of your business.

  • Tech job postings have plunged since early 2022, with senior-level positions down 19% and standard/junior roles down 34% from pre-pandemic levels as of early 2025. Over 26,000 additional tech jobs were cut through early 2025, though layoffs are increasingly focused rather than panic-driven mass cuts.

    Current Tech Market Landscape:

    Senior Roles Down 19%: Standard/junior roles down 34% from pre-pandemic
    Experience Requirements Rising: 5+ years required roles: 37% → 42%
    Entry-Level Squeeze: Entry positions fell 46% → 40%
    Early Career Challenges: Fewer entry points and reduced opportunities for career progression
    Cascading Effects: Reduced job-hopping limits

    Recovery Outlook & Adaptation Strategies

    Market Recovery Indicators: Strategic Hiring Returns: Tech sector experiencing a rebound with highly selective and strategic hiring, prioritizing specialized talent with interdisciplinary skills
    Sustained Interest: Tech job postings still accounted for 37% of applications from tech workers in June 2025, slightly above pre-decline levels

    Future Positioning
    Adapt to New Reality: Organizations embracing specialized, AI-integrated workflows while tech professionals focus on developing interdisciplinary skills and substantial experience to navigate the evolved landscape.

View the Canada Monthly Employment Update

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