Here are the winners and losers in today's job market
If you're looking for roles in healthcare or service work, you may have a very different experience than the white-collar workforce or new grads.
Overall, the latest jobs data shows that the labor market isn't looking too shabby; the number of payrolls added in the Bureau of Labor Statistics' May report exceeded economists' expectations, and the unemployment rate held steady.
But that doesn't mean all workers are navigating the labor market with ease. Instead, some are faring better than others. Cory Stahle, an economist at the Indeed Hiring Lab, said the new jobs report reflects that divide.
"The headline number says the train keeps chugging along," Stahle said, "but at the same time, not everybody is experiencing that same thing."
Here's who's winning in the job market right now
A few industries stood out in the most recent jobs report.
Employment in the private education and health services sector and the leisure and hospitality sector swelled. They alone accounted for over 100,000 new payrolls in May, and over the last three months have added around 374,000 jobs. In short, if you're trying to find a job in food service or home healthcare, the job market is in your favor.
Other sectors that added roles in May include construction and retail trade, although not at the same clip.
Daniel Zhao, lead economist at Glassdoor, said those service sectors have powered job growth, but "all of them have slowed in the first half of 2025 compared to the back half of 2024."
There were also some winners in the white-collar world. Job-stayers — whether they still want to be there or not — are at least reaping some financial rewards. Average hourly earnings for workers in the information sector, which includes many aspects of tech, shot up from a year ago, as well as pay for those in professional and business services.
For the white-collar workers who are waiting out the Big Stay, that's a win. Indeed, job stayers have a bit of a financial edge right now: Their raises are now slightly outpacing those of job switchers, per the Atlanta Federal Reserve, a big change from the days of the Great Resignation.
Who's losing in the job market right now
White-collar workers who are actively seeking a new role probably aren't feeling too hot; neither are new grads.
Employment growth in the information sector has been nonexistent since February, while employment fell by 19,000 in professional and business services during that time. The job switching pay premium has evaporated, and companies are taking longer to fill available roles.
One subsection of white-collar workers has reason to be especially nervous: Middle managers are getting flattened out of corporate structures in the name of efficiency.
Then, of course, there's the bottom rung of the labor market: New graduates trying to land a full-time role. The share of recent college graduates with jobs that don't require a degree ticked up in March, according to the New York Federal Reserve's analysis. Similarly, that data shows recent college graduates ages 22 to 27 had higher unemployment rates compared to the larger 16- to 65-year-old workforce, a reversal from longer-term historical trends.
"There's fewer people coming in, fewer people heading out," Guy Berger, the director of economic research at The Burning Glass Institute, said. "That mix tends to favor established workers who tend to be older and tends to hurt younger people trying to get their foot in the door."
Stahle said college and high school graduates are entering a frozen labor market where the quits rate is low, people are staying put, and employers aren't really looking for new folks.
"We're seeing unemployment rates rise most notably for those younger workers, college graduate-age workers — which is very different than what we've seen in the past, where those workers tend to do pretty well," Stahle said.
Are you a job seeker, middle manager, or new grad with a story to share? Contact these reporters at jkaplan@businessinsider.com and .
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
2 days ago
- The Hill
These states have the strongest job opportunities in 2025, says new report
Does it surprise you that California and New York don't even crack the top ten list of states with the best job opportunities in 2025? That's just one of the eye-opening findings in MyPerfectResume's latest analysis of January 2025 Bureau of Labor Statistics (BLS) data, which looked at which states offer the strongest job markets for Americans across 49 states. The District of Columbia was not included in the study for reasons unstated. Each studied state was scored across six labor indicators; percent of hires relative to employment, percent of job openings relative to total employment, unemployed persons per job opening, layoffs and discharge rates, labor participation rates, and average hourly wages. Topping the list is Virginia, with low unemployment per job opening (0.5 unemployed per opening), a strong job openings rate (5.7 percent), and above-average wages ($36.26). Second is Vermont for its high hire rate (4.8 percent), and job openings rate (6.3 percent), followed by Connecticut, which combines strong average wages ($39.14), and job market stability, with one of the lowest layoff rates in the country. Massachusetts comes in fourth as the state ranks #1 in wages, ($42.65), and fourth in job stability. Known for its high labor participation (68.1 percent) and low job competition (0.5 unemployed per opening), Minnesota comes in fifth place, followed by Alaska, which has a high hire rate (4.7 percent), and a high number of job openings (5.8 percent). Achieving moderate results across all categories was New Hampshire in seventh place, with low unemployment and strong wages, while Rhode Island which follows, had similarly balanced performance in job availability, stability, and compensation. North Dakota has the highest labor participation rate (69.4 percent) in the country, nabbing it spot nine in the rankings, and lastly, Wisconsin rounds out the top ten for its competitive job market with low unemployment per opening, and steady labor participation. It may be surprising to see smaller Northeastern states rank so highly –– five make the top 10, but these states benefit from substantial public-sector employment, healthcare infrastructure, and education-driven economies. With these factors combined, the result is lower unemployment, higher wages, and overall job quality. Alaska may seem a more obvious inclusion, as we know it has high demand for workers due to its high job availability per capita. North Dakota is similar. Both states have low unemployment, and demand in key industries like healthcare, transportation, and energy. And though usually ranking closer to the bottom in national economic rankings, Vest Virginia nabs spot 22 in this analysis. This is credited to recent growth in remote work, healthcare, and infrastructure investment. States in the Sunbelt and Mountain West, including Arizona (11), Florida (15), Texas (17) Georgia (18), Utah (19), North Carolina (20), and Colorado (21) all did well. All demonstrated strong job market fundamentals, thanks to population growth, the migration of technology companies, and a diverse economic landscape. As for California and New York, they landed in positions 38 and 29, respectively, mainly due to diversified economies, but particularly due to opportunities in tech, healthcare, and media. 'Job seekers often focus on roles and industries—but where you live can be just as important,' says Jasmine Escalera, career expert at MyPerfectResume. 'This report highlights how some states are pulling ahead in hiring, job availability, and stability. If you're considering a career move, these insights can help you align your goals with the places offering the best chances to thrive in 2025.' However, if moving isn't on the cards for you this year, these figures might at least be a comfort if you're finding the job market a struggle in your state at the moment. One tactic you can take is to look for organizations based in these states but who are hiring for remote or hybrid roles. Your state might just be in their catchment area. If that's the case, visit The Hill's Job Board today, where you'll find a mix of roles across the U.S., but with special focus on Washington D.C.. Ready to find a new role? Browse thousands of jobs on The Hill Job Board
CNN
2 days ago
- CNN
Why Black unemployment just rose to its highest level since January 2022
Unemployment among Black Americans last month reached its highest level in more than three years, in stark contrast to the broader labor market's resilience. The jobless rate for Black Americans climbed to 6.8% in June, the Labor Department said Thursday, up sharply from May's 6% and the highest level since January 2022. Meanwhile, the national unemployment rate ticked down to 4.1% and employers added a stronger-than-expected 147,000 jobs in June, according to Thursday's jobs report. Joblessness also declined for Whites, Hispanics and Asians. President Donald Trump's chaotic trade war, which paralyzed business decision-making and sparked fears of higher prices, was one factor in the rise in Black unemployment. For months, businesses have said the Trump administration's significant policy changes — from on-again, off-again tariffs to cuts in federal funding — have made it difficult to plan ahead, prompting some to put hiring plans on hold, according to various surveys. Black Americans are usually impacted first whenever the economy begins to weaken, economists say. Black Americans lag behind their White counterparts in income, wealth, financial savings and home ownership, according to previous CNN reporting. Additionally, the Trump administration has placed diversity, equity and inclusion programs in its crosshairs. 'When the economy slows down, Black workers may be impacted more quickly or more severely,' said Daniel Zhao, senior economist at Glassdoor. 'But it's consistent with the broader story for all workers of unemployment trending upwards over the last two years. We've just seen more of that for Black workers.' And while the broader labor market seems to be chugging along, that has mostly been due to a few industries: health care, local government and hospitality. In June, the private education and health services industry was up a remarkable 411,000 net jobs compared to six months ago, according to Labor Department data. All other industries, except government and hospitality, added fewer than 51,000 jobs each during that same period. 'Black Americans tend to work in transportation, warehousing and utilities, which are industries where we've seen hiring pulled back, especially in the last few months,' said Cory Stahle, senior economist at employment site Indeed. 'Businesses are trying to figure out what they're going to commit to as far as pricing, spending and hiring while trying to navigate these tariffs and the uncertainty.' Black Americans may also be feeling the brunt of the Trump's administration's aggressive downsizing of the federal government, which shed 7,000 jobs last month. Federal employment is down 69,000 from January, according to the Labor Department. 'Job losses in the federal government have continued, which could be explaining part of what's going on, especially as the administration targets Diversity, Equity, and Inclusion programs,' said Jessica Fulton, senior fellow at the Joint Center for Political and Economic Studies, a nonprofit that studies the challenges facing Black Americans. 'Black Americans are more likely to work in federal government in particular.' Zhao, Stahle and Fulton all said it's too soon to make any decisive conclusions about the economic state of Black Americans based the latest employment figures. The household survey the Labor Department uses to calculate monthly employment figures draws from relatively small sample sizes for different racial and ethnic groups, making the numbers more prone to swings from month to month. Despite the labor market's resilience, the economy has shown some signs of weakness in other areas. In addition to the limited job growth in most industries, consumer spending fell after tariff-induced spending sprees in the spring.
CNN
2 days ago
- CNN
Why Black unemployment just rose to its highest level since January 2022
Unemployment among Black Americans last month reached its highest level in more than three years, in stark contrast to the broader labor market's resilience. The jobless rate for Black Americans climbed to 6.8% in June, the Labor Department said Thursday, up sharply from May's 6% and the highest level since January 2022. Meanwhile, the national unemployment rate ticked down to 4.1% and employers added a stronger-than-expected 147,000 jobs in June, according to Thursday's jobs report. Joblessness also declined for Whites, Hispanics and Asians. President Donald Trump's chaotic trade war, which paralyzed business decision-making and sparked fears of higher prices, was one factor in the rise in Black unemployment. For months, businesses have said the Trump administration's significant policy changes — from on-again, off-again tariffs to cuts in federal funding — have made it difficult to plan ahead, prompting some to put hiring plans on hold, according to various surveys. Black Americans are usually impacted first whenever the economy begins to weaken, economists say. Black Americans lag behind their White counterparts in income, wealth, financial savings and home ownership, according to previous CNN reporting. Additionally, the Trump administration has placed diversity, equity and inclusion programs in its crosshairs. 'When the economy slows down, Black workers may be impacted more quickly or more severely,' said Daniel Zhao, senior economist at Glassdoor. 'But it's consistent with the broader story for all workers of unemployment trending upwards over the last two years. We've just seen more of that for Black workers.' And while the broader labor market seems to be chugging along, that has mostly been due to a few industries: health care, local government and hospitality. In June, the private education and health services industry was up a remarkable 411,000 net jobs compared to six months ago, according to Labor Department data. All other industries, except government and hospitality, added fewer than 51,000 jobs each during that same period. 'Black Americans tend to work in transportation, warehousing and utilities, which are industries where we've seen hiring pulled back, especially in the last few months,' said Cory Stahle, senior economist at employment site Indeed. 'Businesses are trying to figure out what they're going to commit to as far as pricing, spending and hiring while trying to navigate these tariffs and the uncertainty.' Black Americans may also be feeling the brunt of the Trump's administration's aggressive downsizing of the federal government, which shed 7,000 jobs last month. Federal employment is down 69,000 from January, according to the Labor Department. 'Job losses in the federal government have continued, which could be explaining part of what's going on, especially as the administration targets Diversity, Equity, and Inclusion programs,' said Jessica Fulton, senior fellow at the Joint Center for Political and Economic Studies, a nonprofit that studies the challenges facing Black Americans. 'Black Americans are more likely to work in federal government in particular.' Zhao, Stahle and Fulton all said it's too soon to make any decisive conclusions about the economic state of Black Americans based the latest employment figures. The household survey the Labor Department uses to calculate monthly employment figures draws from relatively small sample sizes for different racial and ethnic groups, making the numbers more prone to swings from month to month. Despite the labor market's resilience, the economy has shown some signs of weakness in other areas. In addition to the limited job growth in most industries, consumer spending fell after tariff-induced spending sprees in the spring.
