Employment Update

June 2025

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

  • Acara Icon Workforce

    Unemployment changed a little at 4.1%

    The unemployment rate changed a little at 4.1 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in health care and government. Federal government continued to lose jobs.

  • Acara Icon briefcase

    Long-term unemployed increased month-to-month

    In June, the number of long-term unemployed (those jobless for 27 weeks or more) increased by 190,000 to 1.6 million. The long-term unemployed accounted for 23.3 percent of all unemployed people.

  • noun worker 7521322 EA0029

    Labor force participation changed little

    In June, the labor force participation rate changed little by 0.1 percentage point to 62.3 percent.

  • Acara Icon earnings

    Average hourly earnings increased by $0.8

    Average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents, or 0.2 percent, to $36.30 in June. Over the past 12 months, average hourly earnings have increased by 3.7 percent. In June, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3 percent, to $31.24

  • Acara Icon Rejected

    Number of people working part time for economic reasons changed a little from 4.5M​

    The number of people employed part time for economic reasons, at 4.5 million, changed little in June. 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 unchanged from last month

    In June, the number of people not in the labor force who currently want a job was little changed at 6.0 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 1.59 of total nonfarm employment in June.

  • Acara Icon people circles

    Temp help jobs increased

    Temporary help jobs in June increased to 3.2%, seasonally adjusted, from last month.

  • Acara Icon payroll

    Nonfarm payroll employment increased​

    Total nonfarm payroll employment increased by 147,000 in June, similar to the average monthly gain of 146,000 over the prior 12 months.

    In June, employment continued to trend up in:

    -healthcare (39k)
    -government (73k)

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Industry Trends – Engineering and IT Recruitment

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

  • The recruitment industry faces unprecedented challenges despite continued job growth.
    Traditional staffing revenues have declined as employers increasingly bypass conventional recruitment channels, turning to internal teams, RPOs, and digital platforms instead.

    70% of employers now prioritizing verified capabilities over degrees
    Key market changes reshaping the landscape include a shift toward skills-based hiring, with over 70% of employers now prioritizing verified capabilities over degrees. AI integration is accelerating placements but requires strategic implementation to maintain human insight for cultural fit assessment.

  • Persistent skills shortages across IT and engineering create sustained demand, with over 75% of employers reporting hiring difficulties.


    However, clients increasingly demand lower fees, longer guarantees, and clearer ROI demonstrations, pressuring traditional business models.

    Success requires moving beyond transactional relationships to genuine partnership. This means adopting candidate-centric approaches that prioritize cultural fit and career alignment, emphasizing quality over quantity in candidate presentation, and streamlining processes while providing strategic market insights.

    For companies seeking engineering and IT talent, the key is partnering with recruitment firms that understand both technical requirements and human elements driving successful placements. Choose partners who combine technological efficiency with specialized expertise and deliver genuine value through strategic partnership rather than transactional service.

    Transform budget constraints into strategic workforce agility through upskilling, community partnerships, and optimized talent acquisition processes.

View the Canada Monthly Employment Update

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