The latest jobs report offers a snapshot of the current labor market, revealing some key trends that could affect hiring and workforce planning. As employers navigate a competitive labor landscape, understanding these shifts can help guide your strategy.
Here are the key takeaways from the February report:
- 151,000 jobs were added in February
- The unemployment rate rose from 4% to 4.1%
- Workforce participation decreased slightly to 62.4%
- Wage growth increased by 0.3% month-over-month
These trends highlight shifts in job growth, labor force participation, and compensation, all of which are important factors for employers to consider when planning their recruitment and retention strategies.
Below, we’ll explore these trends, what they mean for your hiring approach and how to adapt to the current market dynamics.
Number of Jobs Available
The 151,000 jobs added in February reflect a slowdown from the 168,000 monthly average over the past year.
Employment gains were concentrated in healthcare (+52,000 jobs), financial activities (+21,000 jobs), transportation and warehousing (+18,000 jobs), and social assistance (+11,000 jobs).
Notably, federal government employment declined by 10,000 jobs, and retail trade employment showed little change (-6,000 jobs), with food and beverage retailers shedding 15,000 positions, primarily due to strike activity.
Unemployment
The unemployment rate changed little at 4.1%, with 7.1 million people unemployed. The rate has been largely stable since May 2024.
In the latest JOLTS report, which shows hires and separations for January, job openings remained steady at 7.7 million but declined by 728,000 over the past year, while hires held at 5.4 million and total separations stayed near 5.3 million. Quits (3.3 million) and layoffs (1.6 million) saw little change.
Wage Growth and Workforce Participation
Wages have risen 4.0% over the past year, but month-over-month growth remains modest at 0.3%, reflecting the slowdown in job expansion.
Meanwhile, the labor force participation rate dipped slightly to 62.4%, showing little change in overall workforce engagement.
Economic Variables to Keep an Eye On
As businesses continue to navigate an evolving landscape, tariffs are playing an increasingly critical role in shaping economic and hiring decisions.
New tariffs on Chinese imports are creating ripple effects for manufacturers and retailers, and possible tariffs on Canadian and Mexican goods are adding more uncertainty. These policy changes can impact costs, supply chains, and hiring decisions—especially in logistics, production, and inventory-heavy roles. If your business is tied to goods movement or international sourcing, now’s the time to revisit staffing plans and build in flexibility.
Winning Moves for Employers — March 2025
- Prioritize Staffing for Operational Flexibility
With slower job growth and ongoing supply chain disruptions, focus on hiring for roles that keep your operations running smoothly. Fill positions in production, logistics, and essential support—areas where delays can quickly escalate. Filling these roles promptly helps ensure you can stay agile and meet shifting market demands. - Invest in Employee Development to Improve Retention
As wage growth slows, employees are seeking more than just pay increases. Invest in training programs, certifications, and cross-training to provide clear growth opportunities. This will boost retention, keep employees engaged, and reduce turnover, all while increasing productivity in the long term. - Use Temporary Staffing to Stay Responsive and Control Costs
Temporary staffing gives you the flexibility to adjust your workforce as market conditions change. Whether you need to handle demand spikes, seasonal shifts, or project-specific tasks, temporary workers allow you to scale quickly and efficiently—without the burden of long-term commitments.
Looking for More Insights?
At Verstela, we specialize in helping businesses navigate the evolving labor market with expert insights and local talent market data. If you’re looking for more specific market trends or insights tailored to your area, we’re here to provide the information you need.
Visit our Employer Resource Center for additional resources, or contact us directly to discuss how we can support your hiring strategies with localized market data and expert guidance.
