Latest Job Market Trends: Why 20% of U.S. Companies Plan to Slow Hiring in the Second Half of 2025

The U.S. job market, once remarkably resilient through years of economic swings, is entering a more cautious phase.

Roughly 20% of American companies say they plan to slow hiring in the second half of 2025, according to a Conference Board survey of 100 chief HR officers. That figure is nearly double the level seen a year ago, signaling a clear shift in corporate confidence.

For workers, this means fewer job postings, longer job searches, and tougher competition. For businesses, it reflects deep uncertainty about trade policies, immigration rules, automation’s role in productivity, and the pace of the U.S. economy itself.

Why Employers Are Slowing Hiring

Executives cite economic and political uncertainty as the leading reasons for restraint. New tariffs on imported goods are raising costs for manufacturers and distributors.

At the same time, workplace immigration raids and tighter enforcement are reducing the availability of workers in labor-intensive industries like agriculture, hospitality, and construction.

Instead of overcommitting, companies are adopting a “wait-and-see” stance. The Conference Board survey revealed that half of HR leaders now expect negative workforce impacts from federal policy, up from 36% earlier this year. This suggests that employers are preparing for turbulence rather than expansion.

AI and Automation: A Structural Shift

Beyond policy, technology is reshaping workforce decisions. AI and automation are allowing firms to expand output without expanding headcount.

A Deloitte estimate suggests that 35% of large U.S. companies in 2025 will rely on AI-driven workforce management systems for functions such as scheduling, customer service, and analytics.

Meta Platforms, which aggressively hired AI engineers in 2024, froze expansion earlier this year to focus on optimizing internal efficiency, according to WSJ. Healthcare firms like AMN Healthcare have invested in automated scheduling, reducing the need for clerical hires.

Staffing agency GEE Group reported weaker demand for placements in administrative roles, as companies turn to digital solutions instead of hiring additional assistants.

For job seekers, this means the labor market is evolving. Candidates who can highlight skills in data analysis, AI literacy, and digital project management stand out from the competition.

Tools like a modern resume skills generator are becoming more useful than ever, helping applicants reframe their work experience in ways that align with what companies now prioritize: efficiency, adaptability, and technology fluency.

Evidence of a Softer Labor Market

The hiring slowdown is visible in official labor statistics. Job growth has slowed sharply compared with 2024, unemployment is ticking upward, and job seekers are spending more time out of work.

U.S. Labor Market Metrics (2024 vs. 2025)

These figures show a labor market that is still functioning but cooling.

The increase in job search duration, from 20.5 weeks to 24 weeks, means that workers are finding it more difficult to land new opportunities, even if unemployment remains relatively low.

Companies Already Acting

This shows that both high-growth tech firms and traditional healthcare and staffing providers are moderating their workforce plans.

The CEO Confidence Problem

Confidence measures confirm the slowdown. The Business Roundtable’s CEO Economic Outlook Index fell to 69 in June 2025, its lowest point since the pandemic.

Within that survey, 41% of CEOs said they expect employment at their firms to decline within six months, compared with 29% earlier in the year.

CEO Confidence and Hiring Expectations

This pessimism feeds directly into HR and hiring strategies. When top executives lose confidence in growth, hiring budgets are often the first to be cut.

Industry-by-Industry Breakdown

Not all sectors are equally affected. Some continue to grow, while others are slowing sharply.

Hiring Outlook by Sector (H2 2025)

The contrast is clear: while sectors like energy remain robust, traditional areas like manufacturing and healthcare administration are scaling back.

What It Means for Workers

For U.S. employees, these trends mean more competition and the need for new skills. The average job search now takes six months, nearly a full month longer than in 2024.

Workers with expertise in AI, data analysis, and healthcare specialties continue to see demand, while general administrative jobs face mounting automation risks.

Indeed’s Hiring Lab reported that job postings requiring AI literacy grew 18% year-over-year, even as overall job postings slowed. This suggests that demand is not disappearing but is shifting into new domains.

What It Means for Employers

For companies, the strategy of slowing hiring may protect short-term margins, but it could also create risks. If demand rebounds in 2026, firms that cut back too aggressively may find themselves understaffed.

Many companies are turning to contingent labor and contractors as a way to remain flexible while limiting permanent commitments.

Conclusion

The fact that 20% of companies are planning to slow hiring in the second half of 2025 is more than a headline; it encapsulates the cautious mood of corporate America.

It reflects the intersection of economic uncertainty, policy volatility, and structural shifts from automation.

For workers, it means longer job hunts and a growing need to upskill. For employers, it is a balancing act between cutting costs and preparing for future growth.

The second half of 2025 is not shaping up as a collapse but as a controlled slowdown. If trade tensions ease and policy becomes more predictable, hiring could stabilize by 2026.

But if uncertainty persists, this could mark the start of a deeper shift in how U.S. companies approach workforce planning.