The big picture: UKG's June 2025 Workforce Activity Report indicates a stable U.S. labor market, marked by a significant increase in shift work and a simultaneous decline in hiring and separation rates. This suggests employers are retaining talent amidst persistent economic uncertainty.

Why it matters: Staffing and HR leaders should note this shift towards a less dynamic market, where talent retention becomes paramount and new hiring may require more targeted strategies. The data points to a cautious approach from both employers and employees, impacting recruiter mobility and talent acquisition pipelines.

Between the lines:

• Shift work grew 1.3% in June, marking five consecutive months of growth and the highest June reading since 2021.
• New-hire rates decreased by 1.6%, while worker-separation rates dropped by 6.4%.
• Small businesses are driving workforce growth, outpacing larger companies.

Staffing & HR impact: The decrease in separations suggests lower recruiter mobility and a tighter market for passive candidates, potentially increasing the cost of new hires. Staffing firms may need to pivot towards retention strategies and upskilling existing workforces rather than solely focusing on high-volume recruitment.

The bottom line: Despite macroeconomic headwinds, the labor market is holding firm, prioritizing stability over rapid expansion.