From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.

HR Brew

Susanna Vogel

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Illustration of empty cubicle with chair and lamp on the ground 

Companies are laying off between 5% and 7% of their workers

Dan Kaplan, senior client partner at Korn Ferry, told HR Brew that employers are taking a ‘surgical’ approach to RIF.

It’s not your imagination—a lot of companies are laying off between 5% and 7% of their workers

Adam DeRose

jerry seinfeld in red restaurant booth looking at a check and being surprised by th 

Employees want salary increases, but if your company doesn’t have the coffers to fund them, HR has to get creative.

Wage growth still isn’t enough to fight persistent inflation

Aman Kidwai

Rope being pulled in two different directions

As uncertainty becomes the norm, HR leaders should look to build a more sustainable talent strategy with better L&D and a long-term vision.

The future of work will not be without conflict, report suggests

A one dollar bill torn in half with the word Inflation on it

Economy

A group of 40 economists are calling on the federal government to bolster its efforts to collect employment data related to artificial intelligence.

The move comes amid a leadership shake up at the country’s leading agency tasked with overseeing how the federal government collects and analyzes data related to the economy. President Trump 

 Bureau of Labor Statistics (BLS) commissioner Erika McEntarfar, following a number of disappointing jobs reports, sparking concerns that the moves could further erode trust in the agency.

 to Secretary of Labor Lori Chavez-DeRemer was drafted in partnership with the Americans for Responsible Innovation, a nonprofit advocacy organization, focused on emerging technologies like artificial intelligence.

“We urge the Department of Labor to make collecting and providing high-quality and timely data for monitoring AI’s impact on labor markets a top priority,” the letter’s subject reads.

The letter’s release also comes as two signatories—economists studying AI’s impact on private employment—

, among them that early-career workers are the most exposed to AI; although employment continues to grow “robustly” overall, younger workers face particularly stagnant conditions, and increased AI uses does not always correlate with job loss.

“We’re in a period, I think, of increasing turbulence in the economy due to AI and other things,” said one of the study’s authors, Erik Brynjolfsson, a senior fellow at the Stanford Institute for Human-Centered AI, and director of the Stanford Digital Economy Lab. “It could easily become even more chaotic in the coming months and years, so we absolutely need to get better data. We don’t want to be flying blind into this.”

The economists called on the agency to ramp up data collection and analysis of data that is “granular and timely” in order to react to the new challenges and changes that may arise as widespread AI adoption in the workplace grows.

The letter calls on the department to invest in and improve upon the datasets available for researchers studying economic phenomena related to AI adoption, so that they offer more insight into how the technology may affect the jobs market, and how policymakers can prepare for those changes.

“It’s one of the most cost effective investments the government can make. It’s a public good that we should absolutely be investing in,” Brynjolfsson said. “That’s why I signed that letter.”

Private datasets are “not fully representative,” he added.

The aforementioned paper Brynjolfsson coauthored on early AI impacts leverages only the private employment data from ADP, the largest payroll software provider in the country.

“Ultimately, government data and private data,” he added. “I see them as complements more than substitutes.”

Close up of a briefcase with AI abstract connected lines displayed over the key lock.

Economists call for more DOL data on AI’s impact on the jobs market 

In an open letter to the labor secretary, economists warn that more data is needed to understand the technology’s impact on the workforce.

An illustration of a photo of HR Brew reporter Paige McGlauflin.

Paige McGlauflin

The Bureau of Labor Statistics’ August 

 was, well, not good. Employers made few job gains, while the unemployment rate rose to its highest level in years. As the labor market slowed further this summer, experts have again sounded the alarm about an economic downturn. Let’s take a closer look.

Employers added just 22,000 jobs in August, well below 

 of 75,000. Meanwhile, June job gains were revised down by 13,000, and July job gains were revised up to 79,000. The unemployment rate increased to 4.3%, the highest seen since October 2021.

 that a recession may be imminent, while Mark Zandi, an economist at Moody’s, 

 that the labor market is already in one, and has been since June, Business Insider reported. While one month of data is not enough evidence of a recession, the unemployment rate rising while job gains are slowing is a concerning early sign, said Glassdoor’s chief economist, Daniel Zhao, noting if this trend continues in the coming months, it could trigger the Sahm rule (a recession indicator).

“A more substantial downturn is definitely something that businesses have to plan for,” Zhao said. “It’s not a guarantee, but especially with the increasing unemployment rate there are more signs that the job market is weakening in an unhealthy manner.”

Amy Glaser, SVP of business operations at staffing firm Adecco, cautioned employers against letting the topline August numbers drive their talent decision-making.

“We’ll have to wait and see what comes out in September. At this point, I’m still optimistic the labor market is going to remain resilient and strong,” she said. “We’ve called 2025 the year of durability in terms of the labor market. Unemployment changed very minimally, so there’s still opportunity out there for millions of Americans on a daily basis.”

Healthcare added around 31,000 jobs in August, the largest increase of any industry but also below the average monthly gains of 42,000 that the sector reported over the last year. The healthcare industry has made up the bulk of the labor market’s job gains in recent years, and now a moderation in healthcare hiring may not adequately make up for cooling in other sectors.

“There’s no guarantee that healthcare will continue to add jobs at the pace that we’ve seen in recent years. So even if healthcare is continuing to add jobs in the short to medium term, it might not be enough to outweigh the declines in jobs that we’re seeing across all other industries,” Zhao said.

Healthcare was followed by social assistance, which added more than 16,000 jobs, and accommodation and food services, which added over 13,000 jobs. Additionally, retail trade added 10,000 jobs, mostly driven by general merchandising.

Meanwhile, professional and business services reported a decline, with 17,000 fewer jobs added—the steepest of any industry. That sector was followed by durable goods manufacturing and the federal government, which added 19,000 and 15,000 fewer jobs, respectively.

Unfortunately for employers, it’s uncertain how the economy will play out over the next few months. The Federal Reserve is expected to meet and cut interest rates later this month. Lower interest rates could free up cash for businesses and allow them to pursue business investments that lead to hiring.

“Overall, I would say that rate cuts will be stimulative, but it’s not a guarantee that it will outweigh some of these other factors that aren’t related to rates at all,” Zhao said.

The other primary factor at play is tariffs. Despite being locked up in court challenges, many of President Donald Trump’s 

 went into effect in August, charging a 10% to 50% tax on imported goods, depending on the origin country. The impact of tariffs on consumers and businesses isn’t yet known, though sectors like retail and leisure and hospitality—both of which reported employment gains in August—will likely be negatively affected, according to Zhao.

In light of this uncertainty, Glaser said employers are focused on making multiple contingency plans.

“I think if Covid taught us anything as employers, it taught us the ability to be agile and to move quickly,” she said. “So employers are trying to get ahead of it, as we speak today.”

Weak August jobs data is bad news for employers

“A more substantial downturn is definitely something that businesses have to plan for,” an economist tells HR Brew.

Abysmal August jobs report puts recession fears back on employers’ radar

The dog days of summer are coming to an end, and the labor market is already experiencing a frost.

Employers reported a decline in job openings in July, while all other turnover including hiring and separations stagnated from June, according to Wednesday’s 

job openings and labor turnover survey (JOLTS) data

 from the Bureau of Labor Statistics (BLS). Let’s take a closer look.

Employers reported 7.2 million job openings in July, down from 7.4 million in June. Meanwhile, organizations made 5.3 million hires, and saw 3.2 million quits and 1.8 million layoffs and discharges in July, all unchanged from June.

“Employer cautiousness continues,” Rajesh Namboothiry, SVP at Manpower US, told HR Brew. “They’re not hiring, but they’re not firing either.”

Additionally, the ratio of job openings per unemployed person edged up slightly to 1 in July, which Namboothiry said is a bad sign for job seekers. “It is getting tough for job seekers,” he said, adding, “We know that from data, we know that from talking to our talent, that it is getting tougher for them to find jobs. There are less jobs and more job seekers.”

Healthcare and social assistance reported the steepest drop in job openings (a trend supported by 

), declining by 181,000 between June and July, followed by retail trade and arts, entertainment, and recreation, which fell by 110,000 and 62,000, respectively.

In professional and business services, quits increased by 197,000, the largest spike of any industry, while layoffs fell by 130,000. Meanwhile, quits declined the most in construction (down by 80,000), transportation, warehousing, and utilities, and accommodation and food services (both down by 49,000).

Manufacturing was a bright spot in Wednesday’s data, reporting a 41,000 spike in job openings and an increase of 21,000 hires between June and July.

“We have seen that over the last couple of months manufacturing activities have slightly picked up locally,” Namboothiry said. “So that is an indication that we may see some pockets of manufacturing jobs to be added, skilled trade jobs added, which is a positive.”

HR and TA leaders should expect sluggish turnover to continue in the coming months. While 

 from the Federal Reserve later this month could stimulate some business activity and boost hiring, other challenges—including 

—will likely force businesses to continue their trepidatious approach.

As economic uncertainty festers, businesses will likely continue pursuing short-term talent strategies. Namboothiry said he hasn’t had long-term workforce planning conversations with clients for several months now.

“There was a time when they were looking a year ahead. Now it’s not even a quarter ahead,” Namboothiry said.

A Now Hiring sign with Now crossed out and replaced with Not

July’s sluggish JOLTS data is a sign of what’s to come

Despite rate cuts expected this month, continued economic challenges are expected to only further stagnate labor turnover.

The labor market cooled even further in July. It’s only expected to continue.

Following major shakeups at the Bureau of Labor Statistics (BLS), September’s labor market data has many on their toes.

President Donald Trump fired BLS commissioner Erika McEntarfar on Aug. 1, following a 

 that estimated employers added only 73,000 jobs in July and revised job growth down by 258,000 in May and June.

“She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can’t be manipulated for political purposes,” Trump 

 on his social media platform. There has been zero evidence of “rigged” data on her part.

McEntarfar’s removal raised concerns among experts including former BLS commissioners (appointed by both Democratic and Republic presidents), who warned it could 

 Then, on Aug. 11, Trump nominated a replacement: E.J. Antoni, chief economist of the Heritage Foundation, the conservative think tank that published Project 2025.

 in front of the Senate HELP Committee this month, has been met with outcry from many economists, who’ve said he is 

 to lead the BLS and fear he would use the agency and its data to 

further the Trump administration’s political agenda

, rather than report objective statistics.

The outcry sends a worrying signal to HR and talent acquisition (TA) leaders, who use BLS data for everything from forecasting changes in labor supply and demand by location to tracking wage growth by industry.

“Bipartisan groups, including former BLS officials and commissioners, economists, watchdog orgs, condemned that firing as a literal threat to statistical independence… [that] is something that will make every chief people officer, every economist, every talent acquisition leader, raise their eyebrows quite a bit,” Matt Staney, VP of community at HIGHER Community, a professional group that counts more than 12,000 senior TA leaders among its members, told HR Brew.

At the time of McEntarfar’s firing, Lauren Winans, CEO and principal HR consultant at Next Level Benefits, assumed that the BLS commissioner must have done something “really egregious” to warrant her dismissal, until she looked at the revisions.

“But then when you dig into it, the updates and the revisions that were made to the data are pretty standard, because it’s statistical data, and because things are collected in somewhat of an antiquated way, and there are delays,” she said, adding later, “I thought the rush to judgment to immediately go after the commissioner was a little shortsighted, because then it creates this crack in the stability and the credibility of the agency itself.”

. But proposals from the Trump administration and Antoni to “improve the data”—by 

 for a quarterly, for example—could impact how HR leaders craft their hiring strategies, Winans said. Additionally, after significant methodological changes, it could take months before the data is trustworthy again.

“Certainly if they make a shift in methodology, I probably would give it at least a couple of cycles before I maybe trust the data, because when you switch that methodology, that does kind of create some significant change in the way the numbers look and how long it takes to kind of catch up with itself,” Winans said, noting she would continue to use the data as one of several indicators of economic health.

However, McEntarfar’s baseless firing over an upsetting jobs report has already sowed mistrust in future data among HR and TA leaders, said Staney. Employers were planning their hiring strategies on a quarterly basis, as crises from policies like tariffs worsened economic uncertainty. As the integrity of the jobs data creates more uncertainty, TA leaders’ planning will only become more short term.

“When TA leaders pitch workforce strategy to execs, they need to be able to point to independent and trusted sources, and we’re running out of those now, if these sources become political tools,” said Staney. “If he just implants a loyalist into the BLS to just paint whatever picture he wants, we’re going to be flying completely blind, and nobody’s going to trust anything, and companies are not going to hire in a healthy way, and our unemployment situation will worsen.”

President Donald Trump stands in the oval office, with large printouts of economic graphs stacked on the Resolute desk

BLS’s leadership shakeup sends worrying signal for employers

President Trump’s firing of the BLS commissioner, and subsequent outcry from experts, is a bad sign for HR leaders who rely on the data.

Why leadership changes at the BLS are worrying for employers

Mikaela Cohen

A new buzzword has hit the collective consciousness.

“Quiet cracking” describes the feeling of increased disengagement and unhappiness among employees who, amid a weakened labor market, feel stuck at work, Business Insider 

. More than half of employees feel unhappy at work either frequently (20%) or occasionally (34%), 

 from learning management system company TalentLMS found.

While employee dissatisfaction isn’t new, economic turmoil, AI uncertainty, and return-to-office mandates have pushed the workforce into this new era, according to Rishad Tobaccowala, futurist, business leader, and author of 

“Right now, [employees] are basically saying, ‘This sucks, but there’s nothing I can do about it,’ so that’s why you have this quiet cracking going on,” Tobaccowala told HR Brew.

Employees are in “a diametrically opposite position” from where they were during the Great Resignation, Tobaccowala said. They went from commuting to the office five days a week pre-Covid, to having flexibility and autonomy during the pandemic, to now being expected to return to the 2019 workplace, and it’s giving them whiplash, he added.

“Three years ago, we were re-imagining work…We were thinking about how we fit work into life,” Tobaccowala said. “Two years later, we find ourselves in this ‘incredible’ world where it’s gone back to, ‘You will come back to work, whether you like it. If you don’t, we will kick you out of your job.’”

Employees are also experiencing whiplash when it comes to their mobility. Many companies went on hiring sprees around 2021, only to revert to layoffs by 2023, he said.

“In every way, the control has gone back to the company…We have much less, far less flexibility, because you have to deal with high prices, high real estate costs, high food costs,” he said. “In 2021, you thought there was a new world of work, and, in 2025, it’s worse than 2019.”

 HR professionals, Tobaccowala said, should remember the pendulum will eventually swing back in the favor of employees.

“[Employees] are basically saying we are locked, because we don’t like what’s happening, but we need to buy some time. We have to figure out how to save some money. We need to figure out how to build our networks. We need to figure out how to leverage technology,” he said. “We need to figure out how we show up, and work, and do things on the side, and then when we’re ready, we’re ready to go.”

In anticipation, Tobaccowala recommended people leaders focus on offering flexibility and personalization at work.

“While in-person interaction is important, you don’t need to basically have it three days a week. You can get away with three days a month, or even 10 days a quarter,” he said. “Younger people may need to be more at work for training or to be with each other. Middle-aged people with parents to look after and kids to look after have to move far away for better schools and affordable housing…You talk about being agile and flexible, but you don’t do that with your talent?”

Employees are disengaged and biding their time until they can quit

…as evident by the latest (alarming) workplace trend, “quiet cracking.”

While we may be in the middle of summer, the labor market is experiencing a cold front.

Employers added fewer jobs than expected in July, according to the 

 from the Bureau of Labor Statistics. Meanwhile, a significant downward revision to the May and June data suggested actual job gains were much lower than the robust numbers originally reported.

July’s weak numbers and the revisions for May and June 

 Erika McEntarfer, claiming via his social media platform that the numbers were “manipulated for political purposes.”

The newest employment data suggests that employers, faced with a myriad of economic challenges—including uncertainty over President Trump’s tariff threats, the administration’s immigration crackdown 

, and high interest rates—are opting to hunker down instead of investing in growing their businesses and expanding their workforce.

“There’s generally this cautiousness,” Rajesh Namboothiry, SVP at Manpower US, told HR Brew. “They’re just watching how this will play out over the next six months.”

Employers added just 73,000 jobs in July, falling short of the Dow Jones’ estimate of 100,000. The BLS also reported steeper than usual revisions for May and June. Employers added just 19,000 jobs in May, and 14,000 in June, around 258,000 less than originally reported.

“With downward revisions anticipated in September’s benchmark revision, a major reassessment of the labor market’s health is likely. However, it has been evident throughout the year that the labor market lacks momentum,” Kory Kantenga, head of economics for the Americas at LinkedIn, 

The unemployment rate rose slightly to 4.2% in July, but continued to hover between the range of 4% and 4.2% from May 2024. Meanwhile, average hourly earnings for employees rose by 12 cents to $36.44, a 0.3% increase.

Healthcare added more than 55,000 jobs, beating its own 12-month average monthly gains of 42,000, with growth largely driven by ambulatory healthcare services and hospitals. Meanwhile, social assistance saw the second-highest job gains, adding 18,000 in July, with the bulk of hiring in individual and family services.

Healthcare and social assistance were among the few sectors with strong job growth, said Namboothiry. “Every other sector is actually pulling back. So this is an indication of employers saying we’re going to just wait and watch. We’re not going to hire at this point.”

Employment in the federal government declined by 12,000 jobs in July, falling 84,000 since its peak in January. Professional and business services saw 14,000 fewer jobs added, the largest drop of any sector, driven by losses in administrative and support services, while manufacturing and nondurable goods both reported job losses of 11,000.

Right now, many employers are focusing on maintaining their businesses instead of growing, and holding back on hiring except for essential roles, Namboothiry said. For companies, this is a prime opportunity to invest in training their workforce to help them meet the challenges that arrive in the months ahead.

“You don’t have to future proof your workforce today. You don’t have to build the workforce of the future three years from now, today. But you’ve gotta maintain, and you’ve gotta continue to upskill your talent,” he said.

A businessman stands in front of and looks at a giant stack of dominoes that are about to collapse on top of him.

Weak job gains in July highlight employers’ economic anxiety

“This is an indication of employers saying we’re going to just wait and watch, we’re not going to hire at this point.”

July’s weak job gains and revisions spotlights employers’ economic anxiety-driven hiring pullback

The labor market is like those slimy pests that love eating the tomato plants growing in your garden: sluggish.

 that existing economic uncertainty and new turmoil driven by President Trump’s ongoing tariff threats could send the labor market into a tailspin. While that hasn’t occurred, the latest

 (JOLTS) data for June from the Bureau of Labor Statistics suggests that the labor market is continuing its slow but steady cooldown.

In some ways, it’s a blessing and a curse: While the job market hasn’t gone off the deep end, its continual stagnation is also creating its own problems. For example, as fewer opportunities open up externally, employees will be less likely to quit, stalling internal mobility opportunities.

“The story is not one of a job market that is collapsing. Instead, we see much like we’ve seen in the last few months, that the job market is cooling gradually,” said Daniel Zhao, Glassdoor’s lead economist. “But we are still seeing the same pattern in the JOLTS data that has helped explain why workers feel so sour about the current job market.”

Employers had 7.4 million job openings posted at the end of June, a decline of 275,000 from the previous month. Accommodation and food services saw the biggest drop in openings, declining by 308,000 to 754,000 in June. That was followed by healthcare and social assistance (declining 244,000) and finance and insurance (down 142,000).

Meanwhile, retail trade increased by 190,000 to 656,000 job openings, the highest monthly increase for the June data, followed by professional and business services increasing by 156,000, and information by 67,000.

Meanwhile, organizations made 261,000 fewer hires month over month, recording just 5.2 million hires in June. Professional and business services recorded the steepest monthly drop in hires between May and June, reporting 936,000 total hires, a decline of 133,000 month over month. That was followed by accommodation and food services (declining 106,000), and arts, entertainment, and recreation (falling 42,000).

The number of employees quitting declined by 128,000 to 3.1 million, while layoffs and discharges remained relatively unchanged at 1.6 million in June. With total separations, professional and business services declined by 56,000 to a total of 944,000 for the month. Meanwhile, retail trade recorded the highest spike in separations, increasing by 31,000 to 612,000 in June—of that total, 440,000 were employees quitting.

As speculation over whether AI is replacing white-collar jobs mounts, including in professional services and finance, 

 that the technology could be a factor in job turnover plummeting for these sectors.

 prompting cost-cutting measures, including offshoring jobs and layoffs, are what’s really driving a slowdown in these fields. While some jobs, such as administrative services, might be more susceptible to employers wanting to replace workers with AI, this interest is still being driven primarily by cost savings, Zhao said.

“I think it’s hard to see evidence that AI is specifically driving the slow down in jobs growth that we’re seeing. Instead, I suspect it’s a little bit reversed where, right now, jobs growth in general is slow, and that’s being driven by macroeconomic factors rather than AI,” Zhao added.

As economic uncertainty persists, employers will have to be prepared for the labor market to shift in any direction. That’ll mean continuing to plan for a myriad of scenarios, according to Zhao.

“Given how much uncertainty there is right now, it would be irresponsible to stick our heads in the sand and pretend that there is only one path forward.”

HR leaders will want to keep an eye on their workers as well. With fewer opportunities opening up internally and externally, workers are more and more susceptible to resentment and disengagement, Zhao claims.

“I think it’s important for HR leaders to recognize that employee disengagement is likely to be a significant problem right now, and might even be worse than in other job market contexts,” Zhao said, “because so many workers are prioritizing job security and would rather sit in place in a job where they are disengaged and unhappy rather than test the waters on the open market.”

a graphic of a cartoon man walking on a stock market chart