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Chart: Is America Experiencing a Hiring Freeze?
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- Monthly job gains sharply declined over the first half of 2025.
- The U.S. unemployment rate is nearing a four-year high at just over 4%.
- Many major companies have paused hiring or issued layoffs amid economic uncertainty.
Since the post-pandemic economic recovery began, the U.S. labor market has been a pillar of strength. But new data from the Bureau of Labor Statistics (BLS) suggests that momentum may be stalling. According to this recent chart by Statista, job growth in the U.S. has tapered off dramatically, and the unemployment rate is trending up.
Below, we break down the chart and the broader context behind these concerning labor market signals.
A Look at Recent Employment Numbers
Job creation has slowed significantly since 2021, when the economy was regularly adding over 600,000 jobs per month. In 2025, many months are hovering just above zero.
| Thousands of jobs (1-Month Net Change) | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Jan | 236 | 365 | 225 | 444 | 119 | 111 |
| Feb | 261 | 509 | 869 | 306 | 222 | 102 |
| Mar | -1397 | 824 | 471 | 85 | 246 | 120 |
| Apr | -20471 | 365 | 305 | 216 | 118 | 158 |
| May | 2616 | 421 | 241 | 227 | 193 | 19 |
| Jun | 4631 | 796 | 461 | 257 | 87 | -13 |
| Jul | 1584 | 931 | 696 | 148 | 88 | 79 |
| Aug | 1564 | 487 | 237 | 157 | 71 | 22 |
| Sep | 951 | 466 | 227 | 158 | 240 | |
| Oct | 691 | 857 | 400 | 186 | 44 | |
| Nov | 270 | 637 | 297 | 141 | 261 | |
| Dec | -183 | 575 | 126 | 269 | 323 |
The most recent BLS data shows that the U.S. added only 22,000 jobs in the last reported month, while the unemployment rate climbed to 4.1%—its highest level since 2021.
As well, BLS reports that nearly two million people in America were long-term unemployed (jobless for 27-plus weeks) — almost double the number of people recorded in early 2023.
Why Is Job Growth Slowing?
There are several factors contributing to this stagnation. First, interest rates remain high, limiting corporate borrowing and investment. Second, multiple major companies—including Google, Amazon, and UPS—have announced significant layoffs in 2024 and 2025, as documented in this running list of layoffs. And third, businesses appear to be growing more cautious in the face of a potential economic slowdown.
According to recent reporting from AP News, industries like tech, finance, and logistics have all seen reduced hiring or workforce reductions. Even as job openings remain high in some sectors, companies are taking longer to fill roles or withdrawing postings entirely.
Is the U.S. Entering a Hiring Freeze?
While the term “hiring freeze” may sound dramatic, it reflects a broader truth: businesses are hitting pause. The three-month moving average of job gains is trending downward, and job creation is no longer enough to meaningfully lower unemployment.
This is a sharp reversal from the 2021–2022 labor market boom, and suggests that more workers may soon find it harder to secure employment. For context, states like California and Nevada are already seeing above-average unemployment rates, as shown in this state-by-state breakdown.
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Explore this related chart on Voronoi: Unemployment Rates in OECD Countries