Hiring confidence shifts as US employers become more cautious

Although most hiring managers still feel confident about hiring in 2025, optimism appears to be wavering as employers reassess their growth plans for the rest of the year, according to a July 23 report from Express Employment Professionals.

In a June survey, 78% said they feel positive about their company’s hiring outlook for the remainder of 2025, which has declined since November. In addition, 37% now express a negative outlook, up from 30%.

“These numbers tell a story of employers recalibrating,” Bob Funk, Jr., CEO, president and chairman of Express Employment International, said in a news release. “They’re still hiring, but with more intention, more strategy and a sharper eye on the future.”

In the survey of 1,000 U.S. hiring decision-makers, 58% said they plan to increase their workforce during the second half of the year, marking a drop from 63% in the fall. Another third of employers expect to remain stable, and 7% plan to cut back.

Among those planning to hire, employers cited growing workloads, the need to fill newly created roles and replacing employees after turnover as their reasons for adding workers.

In contrast, those planning to reduce staff said they need to cut costs, adapt to government policy changes and adjust to declining demand.

Companies also reported a slight shift in the types of roles they’re seeking to fill. Although full-time positions remain the top priority, at 81%, they’ve dropped from 86% last fall. 

Hiring now appears to be evenly split between entry-level and mid-level positions — with both at 50% — and entry-level hiring dropping from 68% in spring 2024.

As the labor market slows, unemployment benefits claims are increasing and recently rose to the highest level since November 2021, according to Labor Department data. Economists forecast that the unemployment rate will rise to 4.8% by December unless hiring plans shift.