RECRUITMENT & RETENTION

Morning Brew Inc.

The job market was as sunny as the weather in August, per the latest jobs report from the Bureau of Labor Statistics.

After a few months of concerning jobs data, employers reported stronger-than-expected job gains, while labor force participation ticked up after declining for several months. While experts caution that continued job gains are needed in the months ahead to confirm a true recovery, August’s report is still a positive first sign of rehabilitation from the sluggish labor market seen recently.

Diving into the data. Employers added 162,000 jobs in August, more than triple the 53,000 that economists surveyed by Dow Jones had expected. Revisions to June and July data saw improved hiring for those months as well. June was revised upwardly from 20,000 to 31,000 jobs, while July, which initially reported a 23,000 decline in payroll, was revised to have added 21,000 jobs. Job openings have increased in recent months, potentially leading to more movement among workers in August. The unemployment rate stayed flat at 4.1%, while the labor force participation rate rose slightly to 61.6% after falling consecutively for the prior eight months.

Zoom out. Looking ahead, employers should anticipate a labor market recovery in the next four to six quarters and begin planning for how they will navigate, Raj Namboothiry, head of ManpowerUS, told HR Brew. The employers who come out on top will be those looking proactively at their current employees’ skills, how the most-needed skills might change, and how they can acquire those skills, whether through hiring or developing talent.

For more on what the latest jobs data means for HR, keep reading here.—PM

      

Sponsored By General Assembly

Trying to build AI skills at any organization can feel like an uphill battle, but tons of SMBs are actually pulling ahead when it comes to AI skilling and upskilling.

So what can we learn from them? Ask General Assembly. They put together their AI Talent Advantage research brief to give you a closer look at the data behind the AI talent shift, with stats like:

• 70% of SMBs have invested in AI skills training, but fewer than half use AI-powered automation, and only 30% have moved into agentic AI.
• SMBs are spending more on AI tools (46% of their average AI spend) than on training their people to use them (34.5%).
• 64% of SMBs are upskilling existing employees rather than hiring new AI talent.

See how SMBs are closing the AI skills gap.

HR STRATEGY

Morning Brew Inc., Adobe Stock

Another domino has fallen in Corporate America’s management-flattening movement…

Uber announced earlier this week a 10% reduction in force affecting nearly 3,000 employees, Bloomberg reported. The layoffs are part of an effort to flatten organizational structure and will result in 20% fewer managers, some of whom will be moved into individual contributor roles.

Layoffs targeting middle managers have become increasingly common in recent years. Between May 2022 and May 2025, the number of managers at public companies fell by 6.1%, HR Brew previously reported. Google, for instance, reduced its management headcount by 35% between 2024 and 2025, CNBC reported.

What’s HR to do? People leaders whose organizations are flattening management should prioritize employee engagement and morale efforts, Karan Ferrell-Rhodes, CEO and founder of consulting firm Shockingly Different Leadership, previously told HR Brew.

For more on how HR can support employees amid organizational restructuring, keep reading here.—MC

      

Sponsored By Culture Amp

Peep the numbers on AI and HR. Wondering how AI is really being used in the industry? Culture Amp’s recent article has receipts. Their research looked into usage rates, comfort levels, and the future outlook on the tech. It even distinguishes how HR leaders approach AI differently than their employees. Check it out.

HR STRATEGY

Sopa Images/Getty Images

Airbnb recently announced it will appoint an executive leader to oversee both people operations and communications.

Fallon O’Connor will serve as the rental booking company’s head of communications and people, according to a Sept. 1 memo from CEO Brian Chesky. O’Connor, who’s been with the company for 11 years, previously served as VP of global communications, where she built “one of the most tenured teams at the company,” Chesky said, noting her direct reports have been with Airbnb for a decade, on average.

In her new role, O’Connor will oversee both communications and people, which includes recruiting, talent, and belonging and development. The functions will remain separate, Chesky noted. Ellie Mertz, Airbnb’s chief financial officer, will oversee performance and rewards, and workplace operations.

This isn’t the first time Airbnb is including people operations in an executive’s broader purview.

For more on the appointment, and the trend of tapping one leader to lead both people and communications, keep reading here.—CV

      

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Engagement makes wellness work. Even the best well-being program can’t help employees who don’t use it. When participation stalls, small barriers might be the real culprit. WebMD Health Services’ latest download shares five practical ways to boost engagement, bring employees back, and help wellness benefits earn more than polite applause.

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work perks

Francis Scialabba

Today’s top HR reads.

Stat: Volkswagen will cut approximately 100,000 jobs by 2030 as part of the 89-year-old automaker’s biggest-ever restructuring plan. (the New York Times)

Quote: “It’s a win-win: I get to stay active in my profession, while my small employer has access to my three decades of experience at a fraction of the cost of a regular salary.”—Angela Cheng-Cimini, CHRO at the Chronicle of Philanthropy, on the benefits of working as a part-time HR leader (Business Insider)

Read: Executives aren’t the only ones reaping the rewards of equity. Employers are increasingly affording the benefit to their employees too. (Bloomberg)

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