job market report (April 2025)
don't trust the headlines.
Spend a few minutes scrolling LinkedIn or catching a business podcast this month and you’d think the job market’s on fire—in the bad way. Another round of tech layoffs. AI replacing entire departments. Remote work being rolled back. “Open to Work” banners showing up faster than new jobs.
But when you step back from the noise and look at the data, a more nuanced picture comes into view.
Unemployment remains low. Companies are still hiring. Some sectors are quietly thriving while others are adjusting after a few overheated years. AI is changing things – but not in the way most people assume. And remote work? Still growing, even if the momentum has slowed.
Less of a crash… more of a recalibration.
This isn’t 2021’s launchpad or 2020’s collapse. It’s actually a stable middle ground: a job market that’s fundamentally strong, but evolving in real time. Underneath the headlines, there’s a clear signal—if you know where to look.
Let’s break it down.
A Stable Surface, with Subtle Shifts Beneath
At first glance, the labor market looks solid. The unemployment rate sits at 4.2%—a level economists still classify as healthy and historically low². In March alone, the U.S. added 228,000 jobs—more than double the number needed to keep up with population growth³.
Wage growth has cooled from its post-pandemic highs—currently sitting at a 3.8% year-over-year increase⁴. That’s down from the 5%+ we saw last year, which might sound like bad news, but it’s actually part of a broader “soft landing” narrative. Moderating wages help tame inflation without triggering mass layoffs.
And while some indicators—like the U-6 underemployment rate inching up to 8%⁵—suggest a bit more slack in the system, the overall trend isn’t collapse. It’s moderation.
We’re past the peak. But the floor is still holding.
Big Tech Firing, Middle Tech Hiring
No sector sparks more drama than tech. The headlines focused on high-profile layoffs—Google, Meta, Salesforce, Workday, and others combined to shed tens of thousands of roles⁶⁻¹⁰.
In Q1, there were nearly 24,000 tech layoffs in the U.S., and around 100,000 globally⁶.
But here’s what got far less attention: the U.S. also added 376,000 tech jobs during the same quarter¹¹. Even with the churn, net growth was still strong—especially outside of Big Tech, where demand for AI, cloud, and security talent continues to climb¹².
Tech unemployment sits at 3.1%, compared to the national 4.2% average¹³. That’s not the sign of a sector in crisis. It’s a signal that the job mix is changing—away from generalist coding roles and toward more specialized, high-leverage skills like machine learning, DevOps, and cybersecurity¹⁴.
Like Netflix rotating its catalog—some roles leave, but something new always shows up.
Where Hiring Is Heating Up
Beyond tech, several sectors are showing steady growth:
Healthcare added 54,000 jobs in March alone¹⁵. The field has been adding 50K+ jobs per month consistently for over a year, with over 1 million openings still unfilled¹⁶.
Social assistance roles, including childcare and nonprofit social work, added another 24,000 jobs—suggesting ongoing demand in care-based industries¹⁵.
Leisure and hospitality—after a post-COVID comeback—continues to grow modestly, now sitting above pre-pandemic employment levels¹⁷.
Courier and messenger services, tied to booming e-commerce, added another 16,000 jobs in March¹⁵.
These aren't sexy jobs—but they’re generating real opportunity.
Where Things Are Slowing
Retail employment has been flat, with one-off bumps tied to strike resolutions rather than long-term demand. The rise of automation and online shopping continues to limit upside in this sector¹.
Federal government jobs dropped by 15,000 between February and March due to budget tightening, though state and local governments are still trying to rebuild essential services like schools and public safety¹⁶.
Financial services and business consulting have gone quiet. Temp staffing and tech consulting are soft, which is dragging down the broader “professional and business services” category.
Overall, we’re seeing a realignment. Not a loss of work, but a redistribution of where that work is happening.
Remote Work: Still Rising, Just More Quietly
Despite the “return to office” mandates from companies like Amazon and Dell¹⁸, remote work is still gaining ground—just more quietly.
Roughly 20% of U.S. workers are fully remote today, and that number is expected to reach 25% by year-end—a 25% growth rate, even if it’s only a 5-point jump¹⁹.
That said, remote jobs remain disproportionately competitive. There are more applicants per opening, higher standards for self-management and communication, and a rising expectation that remote workers know how to leverage tools like AI, Slack, Notion, and async workflows without constant oversight²⁰.
The opportunities are there, you just need to be more dialed than ever.
AI: The Market Shaper
AI is impacting the labor market from two angles: job elimination and new role creation.
In 2024, 12,700 U.S. jobs were cut explicitly due to AI²¹.
IBM’s CEO announced a hiring freeze for back-office roles, projecting 7,800 jobs could be replaced by AI in the next five years²².
At the same time, demand for AI talent has skyrocketed:
AI-related job postings have doubled²³.
Nearly 1 in 4 new tech jobs now require AI skills²⁴.
Non-tech sectors—like healthcare, marketing, and operations—are hiring professionals who can use AI to improve workflows²³.
No, you don’t need to become a machine learning engineer. But you do need to know how to use relevant AI tools—because that’s quickly becoming a baseline expectation.
Make sure you’re still landing roles in 2025:
If you’re navigating the job market right now, mindset is everything.
Yes, remote roles are more competitive than ever. That doesn’t mean it’s impossible—it means your positioning needs to be sharper. Your resume has to clearly signal ROI and have the right buzzwords so you bypass the AI systems. Your LinkedIn needs to reflect your value, not just where you’ve worked.
AI is no longer optional. You don’t need to build the tools – but you do need to know how to use them. Whether you’re in sales, design, operations, or project management, the most attractive candidates in 2025 are the ones who know how to integrate AI into their workflow without losing the human touch.
Adaptability is the throughline. If you can shift gears, speak directly to what employers need, and show results (not just effort) you’ll stay ahead of the curve, no matter how the market moves.
3 actions you can take today to stand out:
All this info is meaningless if you don’t implement it in a useful way.
So, here are 3 real things you can do this week to get an upper hand in the job market to stand out and ensure you have at least 1 income stream (if not 2 or 3) regardless of the state of the job market.
Get hyper-clear on the role you actually want.
With 500 resumes to choose from, recruiters won’t even notice you unless you stand out as the perfect candidate. If you’re not clear on your outcome, your application won’t communicate that you’re the obvious choice.SEO-optimize your LinkedIn and resume.
The AI needs to think you’re the right fit for the role before a human even knows you exist. If the algorithm on Linkedin, Indeed & Ziprecruiter don’t assume you’re a good candidate, you’ll be on page 47 of results for the recruiter. When’s the last time you read to page 47 on Google search results? Exactly.Go wide with volume—but do it smart.
Even with 1 & 2 dialed, there are still 500 applicants to every job. A good resume today still may only have a 1% positive response rate from recruiters. Depressing? Yes. Solution? Volume. Get out 2,000 applications per month, that’s at least 20 interviews per month. May seem impossible, but that’s what I did (and we currently do) for our 120+ clients.
If you’d like help getting this set up for you, you can grab time with us here.
Regardless, figuring out how to get out at least 100-200 applications per week can start creating real momentum.
Bonus tip: use the Simplify chrome plugin to auto-populate your application forms when applying long form on company websites.
The unemployment rate does not count those with severance packages - so the numbers don't accurately reflect the number - Unemployed. Severance is becoming the new unemployment insurance - however with times significantly higher between looking for and finding work, we will see the numbers in unemployment rising steadily by September. That would be a good future article to delve into, Delaney.