HR Insights: Labor Shortages, Wage Trends & Workplace Shifts in 2025
1.7M
The U.S. labor force is 1.7 million workers short compared to February 2020, with 8 million job openings but only 6.8 million unemployed workers. The labor force participation rate is 62.7%, down from 63.3% in 2020 and 67.2% in 2001. A 2022 survey found that 66% of unemployed workers were not actively job searching, 49% wanted remote work, 26% said returning to work was unnecessary, and 24% felt pandemic aid reduced job-seeking urgency.
143,000
In January 2025, the U.S. economy added 143,000 jobs, a slowdown from December’s 307,000, reflecting a cooling labor market. The unemployment rate remained steady at 4.0%, while average hourly earnings rose by 0.5%, the highest in five months, signaling strong wage growth despite fewer job additions. The labor force participation rate held at 62.6%, consistent since December 2023, indicating stability in workforce engagement.
40%
A Zety survey of 1,065 U.S. workers found that 50% say starting a family is impossible on their salary, 40% can’t save for retirement, and 37% find homeownership out of reach. Financial stress affects 90% of workers' emotional well-being, with 36% feeling less motivated at work and 26% actively seeking better-paying jobs. Rising costs and stagnant wages are key barriers, with 26% citing inadequate salary growth and 22% blaming the cost of living.
$10,000
Cameo is offering a $10,000 raise to employees working in-office Monday-Thursday at its Chicago HQ, along with free lunch, parking, and gym access. The policy applies to 26 employees in Chicago, while remote workers can attend Team Week once a month with company-paid flights and accommodations. Announced a month ago, the change has not led to any employees quitting or relocating.
96%
A Handshake survey of 6,000+ students found that 96% of interns say their experience shaped their career goals, while 80% said compensation influenced their job decisions. 74% of internships are paid, yet only 63% of underpaid interns would accept a job offer, compared to 80% of fairly paid interns. 41% of the class of 2025 applied for internships, up from 34% in 2023, while internship postings dropped 15%. Tech internships fell 30%, and professional services dropped 42%, increasing competition.