PeopleScout Jobs Report Analysis – September 2025

After being delayed more than six weeks due to the federal government shutdown, the September 2025 jobs report was released—showing U.S. employers added 119,000 jobs. This marked a clear improvement from August’s slight payroll decline but is still consistent with a labor market that has cooled from its pace of the past two years. The unemployment rate edged up to 4.4%, its highest level in roughly four years. Healthcare continued to drive hiring, with Leisure & Hospitality and Retail also seeing significant gains, while Transportation & Warehousing, Manufacturing and Federal Government employment declined. Wage growth remained solid, with average hourly earnings up 3.8% year-over-year.

The Numbers 

  • 119,000: U.S. employers added 119,000 jobs in September. 
  • 4.4%: The unemployment rose slightly to 4.4%. 
  • 3.8%: Wages rose 3.8% over the past year.  

The Good 

September’s stronger-than-expected payroll gain suggests the labor market retained more momentum heading into the shutdown than many had anticipated. Education & Health Services once again led job creation, adding 59,000 positions, while Leisure & Hospitality payrolls rose by 47,000. Retail also contributed modestly, adding nearly 14,000 jobs. Wage growth of 3.8% year-over-year remains comfortably above pre-pandemic norms and continues to outpace inflation. The average workweek edged up, and overall labor force participation rose to 62.4%, with the increase driven entirely by women in their prime working years, who are nearing last year’s record participation levels. 

The Bad 

Despite the surprise in headline job growth, the broader picture remains one of a sluggish labor market. Total nonfarm payrolls have shown little net change since April, and August was revised to show a loss of 4,000 jobs, marking the second monthly decline this year. The unemployment rate rose to 4.4%, the highest since the later stages of the pandemic recovery, indicating that job creation is not fully keeping pace with labor force growth. Sector weakness was evident across Transportation & Warehousing (-25,000), Manufacturing (-6,000) and Professional & Business Services (-20,000). While initial claims for unemployment benefits remain low, continuing claims have been drifting higher, suggesting that displaced workers may be taking longer to find new roles. 

The Unknown 

September’s report captures labor market conditions prior to and during a record-long government shutdown that delayed data collection and disrupted normal economic activity. With the October report canceled and October and November payrolls to be combined and released in mid-December, policymakers, employers and investors are operating with an unusually limited and lagged view of labor trends. At the same time, employers continue to face a complex environment including elevated inflation, tighter financial conditions, shifting trade relationships and changes in immigration and industrial policies. The rise in the unemployment rate will be closely watched by the Federal Reserve as it weighs whether to approve a third consecutive interest rate cut at its December meeting, and without another employment report before that decision, interpretations of September’s mixed signals will take on outsized importance. 

Conclusion 

The September 2025 jobs report portrays a labor market that is steady but subdued. The extended government shutdown has further complicated the picture by delaying data, canceling October’s report and compressing the flow of information policymakers rely on. Against this backdrop, organizations should prioritize workforce planning, scenario modeling and flexible talent strategies—balancing near-term caution with the need to be ready for shifts in demand once the policy outlook and economic data become clearer later in the year.

Why Small and Medium Enterprises Should Consider Recruitment Process Outsourcing

Small and medium-sized enterprises (SMEs) face unique challenges in attracting and retaining top talent. Limited resources, lack of dedicated recruitment teams, and the need for agility in hiring can often put smaller businesses at a disadvantage.  

That’s where Recruitment Process Outsourcing (RPO) comes in— a versatile strategy that businesses of all sizes can leverage to their advantage.  

Yes, we’re here to dispel the misconception that RPO is a luxury reserved for large enterprises with deep pockets. By offering scalable, expert-driven talent solutions, RPO providers are leveling the playing field. They bring enterprise-grade hiring practices within reach of SMEs, allowing them to compete for talent on par with larger corporations.  

Let’s explore how RPO is reshaping the talent landscape for businesses of all sizes. 

The Shifting Landscape of RPO 

Data from Everest Group’s 2024 State of the Market report highlights a striking trend: the proportion of new RPO deals involving smaller organizations has increased in recent years with both midsized (35%) and small (34%) buyers over taking large (31%) buyers. This significant shift underscores the growing recognition among SMEs of RPO’s value in scaling hiring efforts and navigating an unpredictable labor market. 

Leading providers are offering more flexible, short-term solutions designed to address immediate needs without the lengthy implementation periods traditionally associated with RPO. For instance, modular solutions like PeopleScout’s Amplifiers™ and our ready-to-go RPO solution, Accelerate™, allow smaller enterprises to harness the power of RPO faster. These innovations are making RPO more accessible and responsive to the dynamic needs of growing businesses, further democratizing access to professional recruitment expertise. 

Learn more about our talent solutions for small to mid-sized companies.

Debunking the “Big Business Only” Myth: Why SMEs are Embracing RPO 

The notion that RPO is exclusive to large enterprises is a myth. In reality, RPO can be particularly effective for SMEs experiencing rapid growth or expanding their geographic reach. Here’s why: 

  • Unmatched Expertise: RPO providers bring a wealth of experience gathered from working with diverse clients across many industries. Smaller companies gain access to seasoned recruiters, best practices and industry insights to help them compete for top talent. Plus, an RPO partner will help you develop and refine your recruitment processes, setting a foundation for sustainable growth. 
  • Scalability and Flexibility: As you scale, an RPO solution will adapt to your fluctuating talent needs. Whether you need to ramp up hiring quickly for a new product launch or scale down during slower periods, RPO offers an agility that you can’t replicate in-house.  
  • Time-Saving Efficiency: By taking on time-consuming tasks like sourcing, interview scheduling and candidate management, RPO partners free up your internal teams—from HR to hiring managers—to focus on strategic priorities and business objectives.  
  • Cost Management: RPO streamlines processes and leverages cutting-edge recruitment technologies, often resulting in significant cost savings and more manageable recruitment spend compared to maintaining a full-time in-house team or relying on traditional staffing agencies.  
  • Access to the Latest Technology: Speaking of technology, leading RPOs have their finger on the pulse of the ever-expanding talent tech marketplace. Look for a partner who offers technology consulting to advise on how to capitalize on your existing recruitment tech stack or to recommend new tools to introduce more automation, analytics and innovation for better candidate experience.  
  • Enhanced Candidate Experience: RPO providers excel at creating a memorable candidate journey, from initial contact through onboarding, ensuring a positive experience that reflects well on your brand.  

Is RPO Right for Your Business? 

If you’re a small or medium-sized business looking to scale, improve your hiring processes, or simply manage recruitment more effectively, RPO is worth considering. The key is finding an RPO partner that will take the time to understand your unique needs and will tailor a solution to align with your company’s goals and culture. 

PeopleScout’s RPO solutions provide value for businesses of all sizes. We’re not just focused on filling positions; we’re here to help you build a talent acquisition strategy that can drive your business forward. Whether you’re a startup looking to make your first key hires or a mid-sized company aiming to optimize your recruitment process, PeopleScout RPO might be just what you need. Let’s connect! 

The UK’s Workforce Balancing Act: Ageing Populations and Emerging Roles

By James Chorley, Talent Solutions Director, RPO

I recently wrote about what our children will do in the future, but what about us?! We all know about the technological disruption that has exploded onto the scene. We’ve seen the data on the number of inactive people at working age, but I didn’t fully appreciate the unprecedented demographic change we are about to see.

While much attention has been given to the rise of automation, artificial intelligence (AI), and the creation of “jobs that don’t exist yet,” an equally pressing challenge looms in the background: the UK’s declining birthrate and ageing population.

Together, these forces are reshaping the labour market, creating an urgent need for new skills and a more agile approach to workforce development.

This article explores the critical skills shortages the UK faces today and anticipates the skills required for the future. It also examines how the intertwining challenges of an ageing workforce and emerging roles demand nothing less than a revolution in the way we think about education, training, and employment.

The Demographic Imperative: Fewer Hands, Greater Need

The demographic data is stark. The fertility rate in England and Wales dropped to a record low of 1.44 children per woman in 2023, far below the replacement level of 2.1. Meanwhile, people are living longer, leading to a rapidly ageing population. By 2032, the number of children in the UK is projected to decline by 6.4%, while the population of pensionable age will grow by nearly 14%. The number of people aged 85 and over will almost double by mid-2047.

This demographic shift has profound implications for the workforce. A smaller proportion of younger workers will be available to support an increasing number of retirees, creating economic and social strain. The old-age dependency ratio—the number of working-age people supporting each retiree—is set to climb significantly. While more older workers are staying in the labour market (with record employment levels for those aged 65 and over), this is not enough to offset the broader decline in workforce numbers.

For the UK, this isn’t just an economic inconvenience; it’s a national necessity to address skill shortages and reimagine workforce participation across all age groups.

The Current Crisis: Skills in Critical Shortage

Even without demographic pressures, the UK is already grappling with widespread skills gaps. Almost 70% of businesses reported recruitment difficulties, with chronic shortages in high-growth sectors like digital technology, advanced manufacturing, health and social care, education, and construction.

Specific Skills in Severe Shortage:

These shortages are not just a recruitment issue; they also reveal a deeper problem within the existing workforce. Over 1.7 million employees were reported as not being fully proficient in their roles.

The Horizon: Skills That Don’t Exist Yet

The rise of automation and emerging technologies isn’t just transforming jobs—it’s creating entirely new ones. From AI specialists to sustainability experts, future roles will demand a fusion of technical expertise and human-centric skills.

Emerging Roles:

  • AI and Machine Learning Specialists
  • Cybersecurity Analysts
  • Sustainability and Environmental Specialists
  • Data Analysts and Data Scientists
  • Robotics Engineers
  • Blockchain Developers

Transforming Traditional Roles:

  • Healthcare professionals must adapt to digital patient management.
  • Teachers will need to integrate technology into learning.
  • Manufacturing workers will oversee automated systems.

The common thread across these roles is the demand for adaptability, advanced technical knowledge, and the ability to learn continuously.

The Foundational Enablers: Essential Cross-Cutting Skills

As automation takes over routine tasks, uniquely human skills will become the labour market’s most valuable currency. The skills most in demand by 2035 include:

  • Digital Literacy: A baseline requirement for all workers.
  • Critical Thinking: Essential for solving complex, non-routine problems.
  • Adaptability and Lifelong Learning: Workers must expect 39% of their skills to become outdated by 2030.
  • Emotional Intelligence: Empathy, communication, and teamwork will distinguish human workers from machines.

Strategies for a Resilient Workforce

To address these challenges, Talent and TA leaders must adopt systemic solutions to future proof Talent within their sectors:

  • Agile Education and Training: From shorter, modular apprenticeships to investment in STEM education, training must evolve to keep pace with technological advancements.
  • Lifelong Learning: Employers must reverse the trend of declining investment in training, offering continuous upskilling opportunities.
  • Holistic Workforce Support: Flexible work environments and improved careers guidance can help attract underrepresented groups and retain older workers.
  • Strategic Sponsorship: Simplified worker visa regimes can fill immediate gaps while longer-term solutions take shape.

Conclusion: Thinking Differently About the Workforce

Solving the UK’s workforce challenges means rethinking who we hire, how we train, and what we value in the labour market. As skill shortages deepen and demographic pressures mount, we must start thinking differently about the jobs that will remain in severe shortage over the coming decades.

Embrace Older Generations

Older workers represent an untapped reservoir of experience and talent. By creating flexible work environments, addressing age discrimination, and investing in training for older generations, businesses can benefit from their expertise and keep them active in the workforce.

Accelerate Apprenticeships for All Ages

The traditional model of apprenticeships must evolve. Short, sharp apprenticeships designed for workers of all ages and experiences can rapidly fill skill gaps in critical areas like digital, green energy, and advanced manufacturing. These programs should be modular, flexible, and responsive to emerging technologies.

Foster Lifelong Learning

The future workforce must be equipped to adapt continuously. Employers, educators, and policymakers must work together to make lifelong learning accessible, affordable, and relevant. Programs like Skills Bootcamps offer a promising model for accelerated training in high-demand fields.

The UK’s ability to thrive in the face of demographic decline and technological disruption hinges on its willingness to embrace bold, creative solutions. By fostering a culture of inclusion, agility, and continuous learning, we can build a resilient workforce that bridges generations, adapts to new challenges, and excels in emerging roles.

The balancing act will not be easy, but the rewards—economic growth, social cohesion, and future prosperity—are well worth the effort. It’s time to act, rethink, and reimagine what the workforce can be.

[On Demand] The AI-Enabled Graduate: Mastering Gen AI’s Impact on Early Careers Recruitment

[Webinar On-Demand] The AI-Enabled Graduate:

Mastering Gen AI’s Impact on Early Careers Recruitment

The early careers recruitment landscape has been fundamentally transformed. While organisations debate whether AI will impact hiring, early career job seekers are already using generative AI in their job search. This isn’t a future trend; it’s today’s reality.

Is your recruitment strategy ready for the AI-enabled graduate?

Join PeopleScout’s Head of Assessment Design, Amanda Callen, and Talent Solutions Director, James Chorley, for a data-driven session that reveals PeopleScout’s exclusive research on how Generation AI is strategically transforming early careers recruitment—and what employers must do to stay ahead.

Discover our findings that show how early career candidates are using AI throughout their recruitment journey. This isn’t speculation—it’s comprehensive research that shows why employers need to move beyond guesswork and implement proactive, transparent and adaptive recruitment strategies.

In this webinar, we’ll cover:

  • The scale and strategic nature of Gen AI adoption among early career job seekers
  • Why early careers recruitment needs to adapt to stay on top of rapid technological advancements
  • Why transparent communication is essential to build trust with the AI-native generation
  • Essential steps to review and strengthen your assessment processes against AI vulnerabilities
  • How to implement proactive strategies to embrace AI-enabled candidates

Plus you’ll receive:

  • Exclusive access to our research report, Gen AI Meets Gen Z
  • Assessment vulnerability checklist

Recruitment Marketing Analytics: From Gut Instinct to Data Intelligence  

The emergence of data-driven recruitment has fundamentally transformed how forward-thinking organizations approach talent acquisition. Recruitment marketing analytics isn’t just about tracking basic metrics like application volumes or cost-per-hire—it’s about developing deep insights into candidate behavior, optimizing every stage of the talent journey, and making strategic decisions backed by concrete evidence rather than assumptions. 

Leveraging the data generated through recruitment marketing represents more than just operational improvement—it’s a strategic evolution that enables talent acquisition teams to operate with the sophistication and accountability of modern marketing departments.  

Recruitment Marketing Analytics Fundamentals 

Modern CRM systems provide critical insights through talent pool composition analytics, engagement metrics, campaign performance measurement and conversion measurement across the candidate journey. But a recruitment analytics platform goes deeper, offering a single source of truth for understanding your end-to-end recruitment process. 

Talent acquisition leaders are increasingly adopting sophisticated data-driven approaches to optimize strategies, allocate resources effectively and demonstrate clear ROI to organizational stakeholders. Look for an analytics platform with interactive dashboards that visually monitor trends and identify opportunities, connecting recruitment analytics with talent market intelligence. 

Key Performance Indicators Across the Candidate Journey 

Awareness: 

  • Career site metrics: Unique visitors, source attribution, and content engagement 
  • Social media engagement: Follower growth, share of voice, and engagement rates 

Consideration: 

  • Talent community growth: New registrations and nurture campaign engagement 
  • Application intent: Job description views, application starts, and abandoned rates 
  • Engagement quality: Repeat visits and time spent exploring opportunities 

Application: 

  • Conversion metrics: Application completion rates and cost-per-application 
  • Candidate quality: Skills match percentage and diversity of applicant pool 
  • Efficiency: Time to qualified candidate and recruitment marketing cost-per-hire 

Cross-Funnel Metrics: 

  • Candidate experience: Satisfaction surveys at various touchpoints 
  • Market responsiveness: Time-to-fill by position and location 

Advanced Analytics 

Organizations that move beyond basic reporting can unlock deeper insights to transform recruitment marketing effectiveness. 

  • Cohort Analysis: Track candidate groups over time to identify behavior patterns and evaluate the long-term impact of marketing initiatives. 
  • Funnel Analysis: Identify conversion bottlenecks, compare performance across candidate segments, and evaluate stage-by-stage conversion efficiency to optimize the candidate journey. 
  • Channel Effectiveness Analysis: Compare cross-channel performance, calculate return on investment by channel, and find the optimal channel mix for improved budget allocation. 

Predictive Analytics and AI Applications 

Predictive analytics leverages artificial intelligence (AI) and machine learning to highlight insights, anomalies and predictions, including: 

  • Candidate conversion predictions
  • Channel performance forecasting 
  • Hiring timeline optimization 
  • Sourcing strategy recommendations 
  • Budget allocation optimization 

These capabilities help talent teams understand behaviors of top talent and predict factors such as cultural fit, willingness to change companies and future tenure potential—helping to support confident recruitment marketing budgets. 

Building a Culture of Data-Driven Decision Making 

Successfully implementing recruitment marketing analytics requires more than just sophisticated analytics tools—it demands a fundamental shift in how talent acquisition teams approach strategy development and performance evaluation. This cultural transformation involves moving from reactive, intuition-based decisions to proactive, evidence-based strategies. 

The most successful organizations establish regular data review cycles where recruitment teams analyze performance metrics, identify trends, and adjust strategies accordingly. They create accountability frameworks that tie recruitment marketing decisions to measurable outcomes, and they invest in developing analytical capabilities across their talent acquisition teams. 

Equally important is establishing clear data governance practices that ensure accuracy, consistency, and actionable insights. This includes standardizing data collection methods, implementing quality control processes, and creating accessible dashboards that enable real-time monitoring and decision-making. 

Recruitment Marketing Analytics as a Revenue Driver 

Data-driven recruitment marketing transforms talent acquisition from a cost center focused on filling positions to a strategic function that drives measurable business value. When recruitment teams can demonstrate clear connections between their marketing investments and outcomes like improved candidate quality, faster time-to-hire, and enhanced employer brand perception, they gain credibility and resources to execute increasingly sophisticated strategies. 

By adopting recruitment marketing analytics, organizations can optimize recruitment marketing budgets, improve candidate quality, reduce time-to-hire and demonstrate clear ROI to leadership—creating sustainable competitive advantages in the global talent marketplace. The future belongs to those who can transform data into actionable insights and use those insights to build more effective, efficient and candidate-centric recruitment experiences. 

How Recruitment Marketing Technology Is Transforming Talent Acquisition

Today’s most successful organizations aren’t just using technology to automate existing processes—they’re leveraging it to fundamentally reimagine how they identify, attract, engage and nurture talent relationships. Modern recruitment marketing technology enables organizations to operate more sophisticated recruitment marketing campaigns, with the ability to segment audiences, personalize experiences, track engagement, measure ROI and optimize campaigns in real-time. The result is a more strategic, efficient, and candidate-centric approach that drives superior outcomes in an increasingly competitive talent market. 

Understanding and leveraging these technological capabilities isn’t just an advantage—it’s becoming essential for remaining competitive in a market where the best candidates have multiple options and expect sophisticated, personalized experiences throughout their journey. 

Core Capabilities of Modern CRM Platforms 

While Applicant Tracking Systems (ATS) have long served as the technological backbone of recruitment processes, their focus on managing active applications creates significant limitations in today’s talent-driven market. Enter Candidate Relationship Management (CRM) technology. A CRM platform enables organizations to nurture relationships with candidates long before they apply, creating robust talent pipelines and enhancing the overall candidate experience. 

Talent Community Management 

At the heart of CRM technology is the ability to build and nurture talent communities. A CRM allows you to create dynamic talent pools where candidates can express interest, update preferences and receive tailored communications—all outside the formal application process. Talent groups can be segmented to create region-specific or role-specific talent communities that respect nuances while maintaining a consistent employer brand. 

Key Capabilities: 

  • Segmentation capabilities for targeted engagement 
  • Self-service profile management for candidates 
  • Interest-based talent pool organization 
  • Engagement tracking and scoring 
  • Automated membership management workflows 

Personalized Candidate Journeys 

CRM technology helps you create the highly personalized experiences modern candidates expect. Deliver experiences that feel bespoke to each candidate, addressing their specific interests, career aspirations and information needs based on their stage in the process. For instance, a software developer might receive content about technical challenges and innovation, while a marketing professional might see content showcasing creative campaigns and brand initiatives. 

Key Capabilities: 

  • Microsites for specific talent communities or recruitment campaigns
  • Automated yet personalized communication workflows 
  • Hyper-targeted messaging informed by career site behavior, engagement signals and candidate status 
  • Preference and interest-based content delivery 

Sophisticated Nurture Campaigns 

Perhaps the most transformative aspect of CRM technology is the ability to develop long-term engagement strategies. This allows talent acquisition teams to maintain meaningful connections with potential candidates over extended periods, gradually building familiarity and preference for the employer brand. For roles with limited talent pools, such as specialized technical positions or senior leadership, these nurture capabilities are particularly valuable in developing relationships with passive candidates who may not be ready to apply immediately. 

Advanced Features: 

  • Multi-stage nurture campaign development 
  • Email and SMS/text communication 
  • Trigger-based communication sequences 
  • Engagement scoring and qualification models 
  • Cross-channel campaign coordination 

Event Management and Engagement 

CRM platforms have evolved to support comprehensive event strategies. From campus recruitment fairs to executive networking events, CRM technology provides the infrastructure to maximize the relationship-building potential of in-person and virtual interactions. The most effective platforms seamlessly integrate event engagement with broader candidate journeys, ensuring consistent experiences across touchpoints. 

Functionality Includes: 

  • Registration and attendance management 
  • Pre- and post-event communication sequences 
  • Virtual event platform integration 
  • Attendee engagement tracking 
  • ROI measurement for recruitment events 

Creating a Unified Recruitment Ecosystem

The true power of recruitment technology emerges not from individual tools, but from their seamless integration. A well-integrated technology stack enables consistent candidate experience, streamlines workflows and comprehensive data analysis. For example, integrating your CRM with your ATS eliminates the “black hole” experience where candidates lose visibility into the their status after applying. Instead, the CRM maintains the relationship regardless of application outcomes, enabling you to maintain connections with promising candidates for future opportunities.

The Power of One

Consider leveraging a talent technology suite—a tech platform that integrates an ATS, a CRM and recruitment marketing capabilities out-of-the-box. For example, Affinix®, PeopleScout’s proprietary total talent suite, brings your entire recruitment journey together into one ecosystem. Affinix connects applicant tracking, candidate relationship management, recruitment marketing, digital interviewing and talent analytics with a consistent user experience across applications. Through our modular approach, you can mix and match capabilities and build the perfect recruitment ecosystem for your needs. 

The Data Advantage of Recruitment Marketing Technology 

Modern recruitment marketing technology generates unprecedented insights into candidate behavior, campaign effectiveness and talent market dynamics. Organizations that effectively leverage this data gain significant competitive advantages through evidence-based decision making and continuous optimization. 

The most sophisticated platforms provide recruitment marketing analytics on engagement rates, conversion metrics, candidate journey progression, and sourcing effectiveness. This data enables recruitment teams to identify what’s working, optimize underperforming campaigns, and allocate resources more effectively. More importantly, it allows them to understand candidate preferences and behaviors at a granular level, informing more targeted and effective engagement strategies. 

Advanced analytics also enable predictive capabilities, helping organizations anticipate talent needs, identify optimal recruitment timing, and proactively build talent pipelines before urgent hiring needs arise. This shift from reactive to proactive talent acquisition represents a fundamental evolution in how organizations approach talent strategy. 

Future-Proofing Your Strategy with Recruitment Marketing Technology 

As technology continues to evolve, the organizations that thrive will be those that view their recruitment marketing technology as a strategic asset rather than just operational infrastructure. The most successful organizations approach recruitment marketing technology as an integrated ecosystem that supports their employer brand, candidate experience and talent acquisition goals. By thoughtfully selecting, integrating, and optimizing their technology stack, they create powerful capabilities that drive competitive advantage in the race for talent.  

PeopleScout Jobs Report Analysis – August 2025

U.S. employers added 22,000 jobs in August, well below expectations of 75,000. The unemployment rate edged up to 4.3%, its highest since 2021, while wage growth slowed to 3.7% year-over-year. Revisions showed June’s payrolls contracted by 13,000—the first decline since 2020—and July’s gain was revised down slightly. Healthcare led with 31,000 new jobs and the leisure and hospitality sector provided a bright spot, adding 28,000 jobs last month. However, losses in federal government, manufacturing, and professional and business services offset much of that growth. Average weekly hours held steady at 34.2. 

The Numbers 

  • 22,000: U.S. employers added 22,000 jobs in August. 
  • 4.3%: The unemployment rose slightly to 4.3%. 
  • 3.7%: Wages rose 3.7% over the past year.  

The Good 

Healthcare and social assistance once again provided stability, with healthcare adding 31,000 jobs and social assistance contributing 16,000. Leisure and hospitality also posted modest gains (+28,000), signaling ongoing demand for services in that sector. The prime-age labor force participation rate rose to 83.7%, indicating that more people in their peak working years are entering or re-entering the job market. Average weekly hours remained steady at 34.2, suggesting that employers are maintaining labor utilization rather than scaling back on hours worked. 

The Bad 

Overall job growth was minimal at just 22,000, well below forecasts of 75,000. Revisions showed that June’s payrolls contracted by 13,000—the first monthly decline since December 2020—while July’s figure was trimmed by 8,000. Job losses were broad-based, with federal government employment falling by 15,000, professional and business services shedding 17,000 and manufacturing down 12,000. Wage growth slowed to 3.7% year-over-year, its weakest pace in more than a year, and broader unemployment, which includes those working part time for economic reasons, rose to 8.1%. 

The Unknown 

The concentration of gains in healthcare and social assistance raises questions about whether broader private-sector demand is weakening. Rising unemployment may reflect more workers re-entering the labor force, but elevated continuing claims suggest it is taking longer to find new jobs. Policy uncertainty and shifting trade conditions continue to weigh on employer confidence, while the Federal Reserve faces a balancing act between slowing job growth and ongoing inflation concerns. The pace and timing of interest rate cuts will play a key role in shaping the labor market outlook for the remainder of the year. 

Conclusion 

The August jobs report underscores a labor market that is stalling, with limited job creation and downward revisions to prior months tempering recent momentum. Still, steady hiring in care-related sectors, stable weekly hours and higher prime-age participation highlight areas of resilience. As the labor market adjusts to shifting economic and policy dynamics, organizations will need to focus on flexible talent strategies and workforce planning to navigate an environment of slower growth and greater uncertainty. 

Early Careers Recruitment Strategy: Enhancing Candidate Experience & Skills Assessment

Early Careers Recruitment Strategy: Enhancing Candidate Experience & Skills Assessment

How to attract, assess and retain Gen Z talent effectively

Generation Z candidates demand authentic employer brands, meaningful work experiences, and transparent values that align with their social consciousness. But this generational shift is also creating unprecedented opportunity for organizations: strategic early careers recruitment, compelling employer value propositions, and transformative assessment experiences that turn talent competition into sustainable advantage.

This ebook, Early Careers Recruitment Strategy: Enhancing Candidate Experience & Skills Assessment, is your roadmap to building a magnetic Gen Z talent attraction strategy now and into the future.

In this ebook, you’ll discover:

  • What’s driving the shift from qualification-based to skills-based early careers recruitment
  • Why your current candidate experience is capturing only a fraction of available Gen Z talent
  • Emerging strategies for building authentic employer brands that resonate with digital natives
  • Techniques to balance AI-powered efficiency with meaningful human connection in assessment
  • Data-driven approaches to creating inclusive, bias-free selection processes
  • Proven frameworks for transforming candidate dropout into strategic self-selection

Download your copy today and position your organization at the forefront of early careers recruitment innovation for years to come.

Beyond the Beaten Pathway: Creative Assessment for TMP Worldwide’s Emerging Talent Search

Beyond the Beaten Pathway: Creative Assessment for TMP Worldwide's Emerging Talent Search

Graduate Assessment

Beyond the Beaten Pathway: Creative Assessment for TMP Worldwide’s Emerging Talent Search

Discover how PeopleScout designed an innovative graduate assessment process for TMP Worldwide’s new development programme. Our reciprocal choice model, Gen AI-resilient tools, and bespoke selection stages that achieved 100% offer acceptance while identifying future leaders who aligned with company values.

100 % attendance rate for the assessment centre
100 % offer acceptance rate
Gen AI resilient assessment process
Gen AI resilient assessment process

Situation

TMP Worldwide—a transformative, multi-award-winning advertising agency that dominates UK media buying, employer branding, recruitment marketing, and resourcing—had big plans. They’d created a brand-new two-year graduate development programme designed to cultivate their next generation of leaders. The catch? Just three coveted spots were available.

While TMPW had successfully designed and delivered numerous graduate assessment processes for their clients, this was the first time TMPW was running a scheme of their own. Unlike a typical graduate scheme with rigid degree requirements or university hierarchies, TMPW’s Graduate Pathway was designed to find graduates with a different mindset who could maximise every learning opportunity and emerge as genuine trailblazers.

They were working with shorter-than-usual timescales and needed maximum return on investment. The challenge was on to design and deliver a bespoke, forward-focused and cost-efficient early careers assessment process to unearth three brilliant graduates.

With no historical data to lean on and an evolving early careers landscape, the process had to be flexible enough to scale up or down based on unknown application volumes—all without affecting costs or timelines. Plus, they needed to stay ahead of the curve with Gen-AI-aware design features that would protect the process from unwanted disruption from candidates potentially using Gen AI to exaggerate or misrepresent their skills.

Solution

PeopleScout’s Assessment Psychologists crafted a bespoke, end-to-end selection process that brought TMPW’s unique proposition to life. This wasn’t about adapting existing frameworks—this was industry-first thinking that gave candidates multiple opportunities to showcase their strengths through an engaging, informative experience.

We started from scratch, applying best practice design principles with a creative twist. We began with research to capture the expertise and perspectives of key Graduate Pathway stakeholders to build a values-led assessment framework that truly embodied TMPW’s culture.

The Reciprocal Choice Revolution

Here’s where our different mindset really showed. Instead of the traditional one-way selection approach, we developed an innovative reciprocal choice model based on TMP’s values and candidates’ evolving expectations. This creative solution emphasised mutual fit over one-sided evaluation, embedding informed candidate choice throughout the process and prioritising transparent, authentic two-way communication between candidate and company.

We integrated realistic job preview (RJP) elements at every stage, ensuring candidates could make genuinely informed decisions about their future with TMP.

We recognised the potential for Gen-AI-enabled applicants to impact the accuracy of hiring decisions and were transparent with candidates about AI usage and issued training and guidance to recruiters.

Three Stages of Discovery

Our creative approach unfolded across four carefully designed stages, each providing deeper insights into both the programme and TMPW while enabling candidates to self-assess their alignment with the company.

Stage 1: Killer Questions

We kicked off with strategically crafted questions based on realistic job previews and informed choice principles. This wasn’t about catching people out—it was about helping the right candidates identify themselves early.

Stage 2: Gen AI-Resilient Sift

Our Gen AI-resilient sift tool assessed priority criteria from the framework, using autoscored situational and preference questions specifically designed to limit Gen AI disruption. This ensured we were evaluating genuine responses and different thinking styles.

Stage 3: Asynchronous Video Interview

We invited the highest-scoring candidates to pre-record a video interview. Those who gave personalised, unique responses earned their place at our immersive assessment centre at TMPW’s London headquarters.

Stage 4: Immersive, Work-Sampling Assessment Centre

This final stage provided realistic work samples and genuine previews of life at TMPW and the nature of role, testing holistic match and ensuring successful candidates could make fully informed decisions when it came to accepting offers—fulfilling our goal to make the right hires the first time and every time.

Results

Interest in the pathway was huge, and our creative solution delivered exactly what TMPW needed. With automated sifting, asynchronous video interviews, and extensive self-assessment opportunities, we identified candidates who were both exceptionally talented and genuinely motivated to succeed at TMPW.

TMPW were overwhelmingly happy with what we managed to achieve, including:

  • Maintaining a highly diverse candidate pool through to the assessment centre.
  • Highly eligible assessment centre candidates who scored highly across the full set of assessment criteria during the exercises and interviews.
  • Cost-effective use of only bespoke-designed assessments with no cost-per-use or licence costs, as well as the ability to scale up without increasing costs.
  • 100% attendance rate for the assessment centre.
  • 100% offer acceptance rate.
  • Positive feedback on the assessment experience from candidates.
  • The identification of strong future leaders who aligned with TMP’s company values and unique culture.

This industry-first approach didn’t just fill three graduate positions—it created a blueprint for identifying and attracting different thinkers who’ll drive competitive advantage for TMPW and their clients for years to come.

Candidate Feedback:

  • “I enjoyed how immersive and hand-on the process was. There were lots of different styles of tasks.”
  • “The process was very creative and unique.”

At a Glance

  • COMPANY
    TMP Worldwide UK
  • INDUSTRY
    Consulting
  • About TMP Worldwide
    TMP Worldwide UK is a leading recruitment marketing agency, specialising in connecting top talent with employers through innovative and data-driven solutions. With decades of experience in the talent acquisition space, TMP Worldwide UK helps employers to attract, engage, and retain the best candidates. Focused on driving measurable results through strategic employer branding, recruitment advertising, and recruitment technology, TMP Worldwide UK helps organisations to outthink their competitors and build stronger, more diverse workforces. For more information, please visit www.tmpw.co.uk. TMP Worldwide UK is part of PeopleScout, a TrueBlue (NYSE: TBI) company, a global talent solutions leader that provides unmatched scalability to meet the hiring needs of organisations of all sizes.

PeopleScout Jobs Report Analysis – July 2025

U.S. employers added just 73,000 jobs in July, well below expectations. Revisions to prior months were significant, with May and June gains adjusted downward by a combined 258,000 jobs. The unemployment rate ticked up slightly to 4.2%, while the labor force participation rate held at 62.2%. July job growth was concentrated in health care (+55,000) and social assistance (+18,000), continuing the trend seen over the past several months. Federal government employment declined by 12,000, while most other sectors saw little to no movement. Wage growth remained stable, with average hourly earnings rising 3.9% year-over-year.  

The Numbers 

  • 73,000: U.S. employers added 73,000 jobs in July. 
  • 4.2%: The unemployment rose slightly to 4.2%. 
  • 3.9%: Wages rose 3.9% over the past year.  

The Good 

While July’s headline number fell short of expectations, several indicators suggest ongoing resilience in key areas of the labor market. Healthcare once again served as a bright spot, adding 55,000 jobs—well above its 12-month average—while social assistance roles increased by 18,000. These two sectors accounted for nearly all net job growth, underscoring persistent demand in care-related industries. Wages also continued to rise, with average hourly earnings up 3.9% year-over-year, outpacing inflation and contributing to real income gains. Additionally, the average workweek edged back up to 34.3 hours, providing a reassuring signal that employers are maintaining labor utilization. 

The Bad 

Total nonfarm payroll growth slowed to just 73,000 jobs in July, its weakest pace since March. More notably, revisions to May and June figures erased a combined 258,000 previously reported gains, suggesting the labor market has been cooling more than initially understood. The unemployment rate rose slightly to 4.2%, while the labor force participation rate held at 62.2%—both relatively flat but trending below recent highs. Job losses continued in the federal government (-12,000) and most other major industries showed little or no growth, pointing to a broad-based slowdown in hiring. 

The Unknown 

July’s report adds to growing uncertainty about the direction of the labor market in the second half of the year. While some sectors remain stable, the sharp revisions and widespread hiring stagnation raise questions about employer confidence amid ongoing economic pressures. Factors such as shifting trade dynamics, geopolitical risk and tighter financial conditions may be influencing hiring decisions. At the same time, the Federal Reserve’s wait-and-see stance may persist given the mixed signals—slowing job growth alongside stable wages and hours worked. Whether July marks a temporary pause or a more sustained cooling trend remains to be seen. 

Conclusion 

The July 2025 jobs report reveals a labor market that is clearly losing steam, though not yet in retreat. Job growth slowed and previous months’ strength was revised downward, but steady wage gains, stable workweek hours and continued hiring in care-related sectors offer some encouraging signs. As broader hiring momentum fades, organizations will need to focus on workforce agility and precision in talent strategy to maintain productivity and prepare for an increasingly uncertain economic landscape.