Talent News Round-Up: Axed Workers, Ineffective Tech, and The Great Stay
Staying updated on the latest workforce trends is crucial for TA leaders and HR professionals. This week, we delve into three significant developments shaping the talent landscape and get SocialTalent CEO, Johnny Campbell’s first-hand takes on these pieces.
- HR Brew: Laid-off federal workers face a tough labor market, with skills mismatches and hiring slowdowns limiting private-sector opportunities.
- Unleash: Recruiters in 2025 are struggling with outdated tech, driving a shift toward smarter tools and better market insights.
- Recruitonomics: The “Great Stay” has slowed job movement, raising questions about whether declining job satisfaction will reignite quits and hiring.
Join us as we explore these pivotal insights and their implications for the future of work.
1. Axed Fed Workers are Entering a Tough Labor Market
Source: HR Brew
The Trump administration’s push to shrink the federal workforce has left thousands of workers facing a tough labor market. While some may transition smoothly into private-sector roles, hiring slowdowns in white-collar industries pose challenges. Cities with large federal workforces, like Washington, DC, and Kansas City, could be hit hardest. Workers with security clearances may be in demand, but skills mismatches could limit opportunities. Employers must rethink how federal experience translates to private-sector needs.
Johnny Campbell’s take on this:
“Unemployment in the US has remained remarkably steady for the last 4 years but will this signal the first real increase since the great resignation back in 2021? One thing that strikes me is that most people see the US as one market, but truth be told, if you’re laid off in Kansas, a job opening in Boston is unlikely to fix your problems. My sense is that the majority of laid off federal workers are later in their career and probably less mobile. Let’s hope that attrition begins to rise again to stimulate some job growth (see article 3 below!)“
2. Ineffective Use of Tech is the Biggest Challenge for Recruiters in 2025
Source: Unleash
Recruiters in 2025 are struggling with outdated technology, with 65% finding their use of market insights ineffective, according to Findem and Recruiter.com. Legacy systems are costly and underperforming, prompting a shift toward smarter tech use. Many are consolidating tools while maintaining or increasing investment in CRM and analytics. Priorities include nurturing passive candidates and optimizing talent networks. The future of recruiting lies in blending human insight with technology for more strategic hiring.
Johnny Campbell’s take on this:
“What a wild ride the last 10 years have been! Back in 2015, most recruiters were toggling between 20 different recruiting apps. The reality is, 10 years later, most of the functionality of these apps now live in a super-CRM that does your sourcing, assessment and insights all in one place. Less tools but more of a reliance on your core CRM. Yet one area still seems to be lacking and that is in the area of market and candidate insights. Chat GPT anyone??“
3. The Great Stay: Has the Job Market Lost its Dynamism?
Source: Recruitonomics
The U.S. labor market has slowed, with fewer job switches and hiring declines marking the “Great Stay.” Quit rates have dropped significantly since the Great Resignation, impacting hiring momentum. While layoffs remain low, overall job growth is steady but slowing. Healthcare remains a strong outlier, growing at 5%, while tech and business services have seen sharp slowdowns. A key question for 2025 is whether job satisfaction declines will reignite quits and hiring activity.
Johnny Campbell’s take on this:
“Everyone in the recruiting sector has felt it, so here’s the data that proves it! It’s like knowing you have a pain in your leg and then the doctor shows you the scan that explains why! This pain hasn’t been the result of layoffs or a downturn, it’s low attrition. Tech and professional services are struggling, although tech has rebounded since a low at the end of 2023. Healthcare is nailing it and only AI could possibly stop the growth in jobs in this sector. What will 2025 hold for the sector? Until Trump’s wild policy changes begin to settle, all bets are off!“