A Market Out of Alignment and Opinions Divided
The data hasn’t delivered clarity and the market hasn’t picked a side. So the next move is yours.
Here’s what we’re seeing and what it means for employers heading into the fall and Q4.
We’ve been reporting the same story all summer about a market that’s been hard to read, out of sync and on pause and while this month is no different, it appears we may have finally reached a decision point. After months of speculating about a market with not much movement at all, we’re now at a place where leaders have to decide what they believe about where the market is going and what that means for their teams, which is excellent news because things can start moving.
Job Hugging, Talent Divided and a Positive Outlook
The latest jobs report from the Bureau of Labor and Statistics suggests we’re somewhere in between a visible slowdown and a strong market that’s just simply imbalanced. With 22,000 new jobs added in August and unemployment ticked up again to 4.3%, there are some signs that things are slowing down.
But other data tells a different story. Wages are still growing and sectors like healthcare, hospitality and legal are aggressively hiring. And ADP’s report showed private employers added over 100,000 new jobs last month, with job growth spreading across small and mid-sized companies. In other words, it’s not a frozen market — it’s fragmented and out of alignment.
The slowdown may feel discouraging, but it’s looking more and more like a positive set up for a stronger Q4. The Fed meets in two weeks, and this kind of cooling is exactly what they’ve been waiting for. If they decide to cut interest rates — which is now more likely — it could loosen up capital, speed up decision-making and reignite movement across industries heading into the end of the year.
Low Quit Rate Signals “Job Hugging” on the Rise
The national quit rate has been hovering at around 2% for nearly a year and a half, which is the lowest non-pandemic level in nearly a decade. And even though the figure is considered normal by historical standards — it’s not normal for this market. While a certain degree of voluntary turnover is essential for a healthy talent flow, a stuck quit rate this low is a red flag that the market isn’t functioning the way it should be. People aren’t staying put because they’re happy in their roles, they’re staying put because they don’t feel confident they’ll find something better. So until that changes, more employees are “hugging” their jobs and employers need to recognize that when the market opens back up, it could trigger a wave of turnovers if they don’t identify the problem within their teams early.
The Talent Market is Splitting in Two
In addition to the divide we’re seeing in the broader job market, there’s a growing split in the talent market itself between the people who are actively applying for jobs and the people companies actually want to hire.
The active and more visible candidate pool has gotten bigger, louder and messier, but it’s also gotten more shallow, more generalized and lower in quality. More experienced, high value candidates have opted out of the traditional hiring system, so they’re not actively applying for jobs, which means the invisible pool of passive, high-quality candidates has grown, too — but it’s deeper, more specialized, and harder to reach.
What this means is that the old system of posting, waiting and sorting through a high-volume of applications to surface the right talent for companies is breaking down because more doesn’t mean better in the way it once did.
The more in demand and capable someone is, the more likely they are to be found outside of the traditional hiring system. And the more low demand and inexperienced someone is, the more likely they are to be found on job boards, deep in the system, applying for dozens of positions a day.
Since the candidates companies actually want to hire aren’t applying, the solution isn’t better AI enhanced filtering methods — it’s changing how hiring gets done. That’s why more business leaders are backing away from high-volume, passive strategies and turning to headhunters and direct outreach to find and access the right people, where they actually are.
Industry Insights: September 2025
These are the biggest trends we’re seeing in hiring right now, based on the industries that we’re working in every day.
Administrative & Office Support
Hiring is steady for experienced office-managers with high-level EAs in high demand. Entry roles are more limited due to increased outsourcing and AI implementation.
Accounting & Finance
Serious talent shortage continues, with many firms expanding teams ahead of Q4. Hiring is competitive, especially for financial analysts, staff accountants, and auditors. While recent jobs data shows financial services are flat or slightly down, internal demand remains strong. Reliance on contract talent to fill FP&A and compliance gaps is increasing.
Construction, Engineering & Manufacturing
Most teams are still in wait-and-see mode pending the October 14 tariff ruling. Skilled labor demand is steady, but hiring remains cautious. Construction posted modest gains in August, while manufacturing saw another month of declines.
Sales
Slow hiring with many entry-level and early career reps stuck in slow pipelines. Teams are prioritizing digital fluency and folding traditional sales into broader revenue roles.
Legal
Law firms and in-house legal teams are aggressively hiring both permanent and contract roles, especially for M&A, privacy, and internal investigations. Hybrid legal-tech roles are gaining traction.
Technology
Tech hiring remains strong in high-impact areas like AI, cybersecurity, cloud, and DevOps. LegalTech tools are gaining popularity, increasing the demand for hybrid roles that involve coding, systems implementation, and compliance. Generalist tech hiring remains slower.
Wealth Management
Banks and investment firms are hiring for specific roles, such as: client-facing advisors, junior & mid-level portfolio managers, financial planners, regulatory and compliance hires and M&A/Capital Market analysts and associates.
What This Means for Employers
This isn’t a broken market. It’s a misaligned one. The reports may say hiring is slowing, but we’re not seeing that on the ground. We’re still filling roles every day for companies that understand the data doesn’t decide what their business needs — they do.
The slowdown may be real in some places, but it isn’t everywhere. That’s why the most effective leaders are the ones who can tune out the noise, focus on their teams, and make decisions based on where they want to go, not what the headlines say.
If you’ve been waiting for clarity, this is your signal that it’s time to move. Promote someone. Replace someone. Reopen a paused search. Realign your team so it’s built for what’s next. Movement creates energy, and energy is what pushes the market forward.
And if you’re ready to hire, remember that the best candidates aren’t applying. They’re not waiting on job boards. That’s why we headhunt — so our clients can hire ahead of the curve, not behind it.
If you’re ready to move, we’re ready to help.
Request Candidates Now to get exclusive access to our privately curated network of top performers — the ones who don’t show up on job boards.
Or Schedule a Strategy Call to find out how leading companies get access to off-market talent that most businesses never get to see.