What A Difference A Year Makes

The labor market has changed quite a bit in a year. The unemployment rate has remained the same at 4.3%, changing little from 4.2% a year ago (see The Employment Situation—August 2025). But the jobs reports have been troubling—new jobs created so far in 2025 is at 598,000 jobs, compared to 1,144,000 over the same time period in 2024 (see The U.S. Added Just 22,000 Jobs In August, Confirming Dramatic Slowdown In The Labor Market).

At the organizational level, average employee turnover rates have dropped to 18% in 2025, compared to . . .