On Why the Labor Market Feels Crazy, and What to Do About It
If you’ve found yourself asking, “Why is it so hard to hire right now?” or “Why are people quitting left and right?” but hear “Should I be worried about my job?” at your dinner table the next day—you’re not alone.
To many, the labor market is a “tale of two markets:” strong, stable employment data vs personal experience, especially for new grads. On the one hand, layoffs continue to make headlines. New college grads, even with degrees from well-known and well-respected schools, are struggling to get a foot in the door.
On the other hand, strong candidates, especially for highly technical roles, are harder than ever to find. Hiring managers are scratching their heads at the difficulties in finding more technical talent, which seems to become more expensive by the day.
Why It Feels Odd
It is well-known that the economy has struggled this year, and that has impacted the labor market. Layoffs have increased in 2025 with three leading causes: DOGE, tariffs, and AI. But “behind the scenes,” leaders report that layoffs often seem to be more of a right-sizing than a true layoff. Companies overhired in 2021, and the ship is righting. And unfortunately, layoffs can also be a way to eliminate poor performers from an organization.
But on the other side of the labor market seesaw, we have a trifecta of factors impacting availability: generational shifts, remote work (or not), and AI disruption . . . all at one time. All of this combines to create an unsettled feeling for both hiring managers and job seeker.
The Big Drivers
We’ve discussed this in previous blog posts, but here are the key highlights to consider:
Significant demographic shifts: Boomers are retiring and fewer young workers are entering some industries (every CPA firm knows this to be true!).
There is a skills mismatch: the open roles don’t always match the available talent. This is probably the most discouraging situation if you’re a job seeker struggling to find a role. Upskilling will continue to be a crucial driver for candidates looking to diversify their skill set. Certain positions continue to be in high demand and the talent pool for those positions is not growing fast enough.
Wage pressure continues to rise: candidates want a higher salary to combat the rising cost of living; companies want a leaner budget line item, especially with rising pressures from tariffs.
Workplace expectations continue to drift apart: Flexibility, meaning (purpose-driven), and culture now matter more than ever. Conversely, the C-suite is under more pressure than ever to increase earnings and drive profitability.
All of the above factors have created a significant impact on the availability of a highly skilled workforce.
What to Do If You’re Hiring
First, retention is half the battle. We wrote an article earlier this year on keeping the team you worked so hard to build, and the principles still hold true. Re-recruit these A players continually, and ask the hard questions about their happiness and job satisfaction. Ironically, the highest performers are likely those who receive the least attention from you as a leader.
But if you’re looking to hire net new, the first step is to get clear on your non-negotiables. What are the core elements of the role that a candidate must have to be successful?
From there, figure out where you can flex. Can this person have an alternative schedule to be able to pick up their kids from school? Can they learn certain elements of the job if they are humble, hungry, and smart enough? Curiosity goes a long way in my book.
I am a big fan of hiring for the intangibles and training the pieces that aren’t there. The intangibles are hard (next to impossible) to teach. An ERP system is learnable.
What to Do If You’re Job Seeking
Be intentional, not reactive. Your job search should be treated like a project. The most successful candidates we see are the most intentional. Start by defining your target: What kind of work energizes you? What values do you want in a company culture? What kind of leader do you thrive under? Write it down.
The next step is to build your search plan around the above. Create a short list of companies that match your criteria, even if they’re not hiring right now. That list becomes your roadmap for proactive outreach and relationship-building. Network, network, network. The old saying is true: “It’s not what you know, but who you know.”
Your superpower is not just where you’ve gone to school or where you’ve worked or the titles you’ve held: your impact will come from how you talk about your career. Can you clearly explain your strengths, your trajectory, and why you’re making a move now? Can you speak to how you’ve adapted to change, learned new systems, and solved problems? Employers are looking less for perfect resumes and more for people who can think critically and adjust as the business evolves.
As a business leader myself, I know I speak for other CEO’s when I say we want people who are curious, committed, and resilient. People who practice empathy and strength. As the world continues to evolve, we will need people who are continually focused on getting better — learning new skills and making us better as a result.
The market is evolving, not broken. Baby Boomers are retiring, and fewer and fewer younger people are willing to take their place. Ron Hetrick reports that, “Before the end of the decade, the US will face a shortfall of roughly 6 million workers. For the first time in history, more people will turn 65 than 16, depleting our working population while our overall population increases.”
But this is not a time for panic. It is a time for thoughtful adaptation to a new world and a new way of working.
More than ever, the right type of talent will make the difference in driving growth.