U.S.-based employers announced 105,441 cuts in April, down 62% from the 275,240 job cuts in March. It is up 63% from the 64,789 cuts announced in the same month last year, according to a report recently released from global outplacement and executive coaching firm Challenger, Gray & Christmas. And it is not stopping there. As of June 2025 recent job cut announcements have come from Microsoft, Amazon, retailers cut over 75,000 from January to May and thousands of other companies across the U.S. made cuts or are planning to.
During the current economic climate, characterized by a decline in job openings and an increase in layoffs, businesses might find themselves at a crossroads. This period presents a unique opportunity for employers to strengthen their workforce and for employees to secure stable positions. My column explores why now is an ideal time for businesses to hire, considering perspectives from both employers and employees.
The Economic Landscape
The U.S. labor market has been experiencing significant fluctuations. Recent data from the Bureau of Labor Statistics indicates that while the economy added 139,000 jobs in May 2025, this marks a slowdown from previous months. The unemployment rate remains steady at 4.2% (as of this writing), but the federal workforce has seen substantial reductions, shedding 59,000 roles since January. This trend is reflective of broader economic uncertainties, including tariff policies and federal spending cuts.
Despite these challenges, job openings have shown resilience in certain sectors. The Labor Department’s Job Openings and Labor Turnover Survey revealed an increase in job openings by 232,000 in January, reaching 7.74 million. This indicates a tight labor market, with the number of job openings per unemployed person climbing to 1.13. However, hiring remains subdued as employers exercise caution amid economic uncertainties.
Strategic Hiring Opportunities
For employers, the current economic situation offers several strategic advantages for hiring:
- Access to a larger talent pool: With layoffs increasing, many skilled and top tier professionals are actively seeking new opportunities. This creates a larger pool of qualified candidates for employers to choose from. Businesses can leverage this influx of talent to fill critical roles and enhance their workforce.
- Competitive advantage: Hiring during economic downturns can position businesses ahead of their competitors. Companies that invest in talent now will be better prepared to capitalize on future growth opportunities. The ManpowerGroup Employment Outlook Survey for the first quarter of 2024 highlights that 47% of employers plan to increase their staff, driven by fresh momentum and business activities.
- Cost efficiency: Economic downturns often lead to reduced salary expectations among job seekers. Employers can benefit from hiring skilled professionals at more competitive rates, optimizing their budget allocations. Additionally, hiring in the first quarter aligns with new fiscal budgets, allowing for efficient resource allocation.
- Building loyalty and morale: By hiring during challenging times, employers can foster loyalty and morale among their workforces. Employees appreciate stability and opportunities for growth, which can lead to higher retention rates and a more motivated team.
Stability and Growth
From the employee’s viewpoint, the current economic situation also presents unique opportunities:
- Career advancement: Economic uncertainties often lead to restructuring within companies. Employees who join during these times may find themselves in positions with greater responsibilities and opportunities for advancement as businesses adapt to new market conditions.
- Skill development: Companies hiring during downturns may focus on building a versatile workforce. Employees can take advantage of training and development programs to enhance their skills and increase their value within the organization.
- Opportunity to be a hero: Joining a new company during an economic downturn, offers an opportunity for new employees to bring an outside prospective that can affect their new employer in a meaningful and impactful way.
- Job openings: Job seekers have a unique opportunity to be considered for roles that they might otherwise not have qualified for, due to the demand for certain skills and/or soft skills that companies seek. Highlighting these skills in a customized cover letter sent along with a resume is key to standing out amongst the other applicants.
Peak hiring periods in general happen in the beginning of the year and early fall. Given that we are now in a down hiring period, there are less options available for the top tier candidates. According to the U.S. Chamber of Commerce, the work force participation rate has trended downward for more than 20 years.
Employers can access a larger talent pool, gain a competitive advantage, and optimize their budget allocations. Employees can benefit from career advancement, skill development, and opportunities for their work to make a difference and be seen by their employer. By strategically navigating this period, both employers and employees can position themselves for success in the evolving labor market.
