March 2025 Career News

Writing about the labor economy right now continues to feel a little like reporting from the deck of a ship in a storm—except half the crew has been thrown overboard, and the captain is… well, let’s just say “preoccupied.” 🚢

Welcome to my corner of the world, where social-political-economic conversations come up daily. No matter how much I try to drown out the noise and avoid the doomsday headlines, I’m continually reminded of the challenges – and fears – caused by the current happenings.

🫠 Enough of my pre-amble; let’s get into the numbers!

If last month’s job market felt uncertain, I can tell you this: we have clearer signs of where things are headed (and it’s not exactly reassuring). 

As you know, I almost always try to find the silver lining among the negativity or tough situations, but I’m gonna be real. It’s hard at this moment. 

Between the latest jobs report, declining worker confidence, and the ongoing federal shake-ups that are likely to have massive ripple effects, the economy is shifting fast. 

🥫But, before we all start hoarding canned goods and stress-refreshing the news, let’s break down what’s actually happening and, most importantly, what you can do about it.

The Numbers & What They Mean

February’s jobs report showed 151,000 new jobs added, and unemployment edged up slightly to 4.1%. If you’re thinking, that’s not terrible, you’re right—it’s not. It’s also the weakest month since October, but it’s just about equal to last year’s average of 168,000 new jobs per month. 🤷

Q1 is historically a strong time for hiring, and last month’s new jobs clocked in at about half (or less) of what we’ve seen over the past few years. So, all in all, we’re not just in a slowdown—we’re seeing a new trend. It is a trend we expect to see as inflation gets reigned in, but it also feels fairly tenuous – like the other shoe is going to drop and that 4.1% unemployment will double overnight. 

Let’s hope not.

Speaking of hope, here are some bright spots:
✔️ Healthcare: +52,000 jobs (steady demand continues)
✔️ Financial Activities: +21,000 jobs (stronger than expected)
✔️ Transportation & Warehousing: +18,000 jobs (e-commerce and logistics are still hiring)

The red flags:
❌ Federal employment: -10,000 jobs (government downsizing is in full swing)
❌ Retail: -6,000 jobs (with food & beverage stores down 15,000, thanks in part to strikes)

The neutral:

Since so many of you are in the technology sector, I’ll address the data and my observations in that market. 

It’s a mixed bag. 

Some companies are expanding, and some are laying off to streamline operations in advance of potential market changes, program cuts, or one of the other 12 reasons I could start swearing about.

📉 Here’s the thing: among the crapshoot mentioned above are some positive shifts. 

Hiring intention is stronger, and candidates are being moved through interview processes at a slightly more consistent clip compared to the snails and sloths we saw last year. I’ve also had several clients land jobs, coach clients with clients landing jobs (there’s a mouthful!), and have seen a LinkedIn news feed peppered with new job announcements. 

Things are happening; it’s still uber-competitive. 

Translation? The job market isn’t falling off a cliff, but it is cooling (you might need to put on a coat now). And with fewer job openings and more people entering the market (hello, displaced federal workers), competition will only increase (more). 

What Workers Are Feeling

If you’re feeling uneasy about your career prospects right now, you’re not alone. Employee confidence has dropped to 44.4%—the lowest since Glassdoor started tracking it in 2016.

It should not shock you that government workers are feeling it the most, along with middle managers who continue to take the brunt of the remaining work as orgs flatten and mid-level roles are compromised. 

One last data point worth bringing to the party is the number of long-term unemployment filers: 1.5 million people have been out of work for 27+ weeks. That means more job seekers with gaps in their resumes, more professionals desperate to re-enter the workforce, and a growing backlog of competition.

👉 I provide all of this data and commentary not to scare you but to make sure you’re informed and understand why it’s taking six months (or more) to find a new role. 

It’s an employer’s market, and worker confidence is tanking, which means people are making one of two choices:

1. Hunker down and stay put, even if they’re unhappy.
2. Jump ship before things get worse.

Both scenarios impact hiring. If fewer people quit, fewer jobs open up. If more people flood the job market, employers have their pick. That makes any decision a tough one.

👉 At the end of the day, you have to do what’s best for you, your financial health, and your mental health. 

There is no perfect time to make a career change, job search, or start a business, and while current factors add more extremity to that statement than I’d like, you have to make the best choices for you and your family based on what we know today.