Introduction
The U.S. labor market is one of the largest and most dynamic in the world. As of early 2025, it reflects a wide range of employment patterns, sector-based shifts, and participation trends. This article outlines key statistics related to employment, unemployment, job types, participation, recent changes shaping the workforce, and capacity to support manufacturing growth.
Labor Force Size and Participation
The total civilian non-institutional population—the group of individuals aged 16 and older who are eligible to work—is approximately 267 million. Out of this group, around 167 million people are in the labor force. This includes both those employed and those actively seeking employment.
The labor force participation rate stands near 62.5 percent. This rate measures the share of the eligible population that is either working or actively looking for work. While higher than the lows seen during the pandemic, it remains below historical peaks, influenced by long-term demographic trends like an aging population.
Employment Statistics
Approximately 161 million people are currently employed. This includes both full-time and part-time workers across all sectors. Full-time workers make up about 132 million of this total, while part-time workers account for roughly 29 million.
The employment-population ratio, which measures the proportion of the civilian population that is currently employed, stands at about 60.1 percent. This metric helps to illustrate how widely employment opportunities are distributed across the eligible working population.
Unemployment Breakdown
As of early 2025, the unemployment rate is approximately 3.9 percent. This translates to about 6.5 million people actively seeking work but not currently employed. The unemployment rate is slightly up from the post-pandemic lows but still historically low by long-term standards.
Youth unemployment (ages 16–24) is higher, averaging around 8.5 percent, while the rate for adults aged 25 and older is lower, around 3.5 percent. Long-term unemployment, defined as being out of work for 27 weeks or more, accounts for about 1.2 million individuals—roughly 18 percent of all unemployed persons.
People Not in the Labor Force
Roughly 100 million individuals are not in the labor force. This includes retirees, students, caregivers, individuals with disabilities, and others who are not actively seeking employment. Among this group, about 5.5 million report that they would like a job but are not currently looking for one. Some cite discouragement, school attendance, or family responsibilities as reasons.
Industry Employment and Trends
Different industries within the U.S. economy are growing or shrinking at different rates. Below is a breakdown of key sectors:
Healthcare and Social Assistance
This sector employs about 21 million workers and continues to expand steadily. Growth is fueled by an aging population and demand for services, especially in ambulatory care, hospitals, and home health services.
Professional and Business Services
Roughly 23 million people are employed in this broad category, which includes legal services, accounting, engineering, and temporary staffing. Job growth has been stable, although some sub-sectors like tech consulting have experienced volatility.
Leisure and Hospitality
Employment in leisure and hospitality is currently around 16 million. While the sector recovered much of the ground lost during the pandemic, it still faces staffing challenges. Wage increases and flexible scheduling have become common strategies to attract workers.
Retail Trade
Retail employs about 15 million workers. The industry is slowly shrinking in total employment as automation and online commerce reduce the need for traditional retail jobs, particularly in department stores and malls.
Manufacturing
Approximately 12.9 million people work in manufacturing. While the sector has seen modest job growth, it faces longer-term challenges from automation and international competition. High-skill manufacturing roles, such as those in aerospace and medical devices, have grown slightly.
Construction
Construction jobs stand at about 8 million. The sector has experienced growth driven by residential housing demand, infrastructure spending, and commercial development. Labor shortages persist in skilled trades such as electricians, plumbers, and heavy equipment operators.
Transportation and Warehousing
This industry employs close to 7.5 million people and has seen growth in recent years due to e-commerce expansion and supply chain restructuring. Trucking, warehouse logistics, and delivery services have become key employment hubs.
Information Technology
Employment in information industries, including software development, telecommunications, and publishing, totals about 3 million. The sector has seen uneven job growth, with declines in legacy media balanced by hiring in cloud computing and cybersecurity.
Job Growth and Decline by Occupation
When looking at occupational groups instead of industries, the fastest-growing jobs include:
- Nurse practitioners
- Data scientists
- Wind turbine technicians
- Solar photovoltaic installers
- Statisticians and actuaries
These roles are driven by healthcare needs, environmental shifts, and data analysis demands.
On the decline are:
- Word processors and typists
- Switchboard operators
- Travel agents
- Postal service clerks
- File clerks
These occupations are shrinking due to automation, self-service technologies, and digital communication tools.
Wages and Compensation
The average hourly wage for all private nonfarm employees is currently around $34.00. For production and nonsupervisory employees, the average is closer to $29.00. Wage growth has slowed slightly after strong post-pandemic increases but remains above inflation in several sectors, particularly hospitality, construction, and healthcare support roles.
Bonuses and flexible compensation models have become more common in sectors with labor shortages. Remote work options and schedule flexibility are now frequently cited as non-wage factors influencing job satisfaction and retention.
Demographic Trends in the Workforce
Women make up about 47 percent of the labor force, and their participation continues to climb, especially in healthcare, education, and professional services. Hispanic and Latino workers now account for nearly 19 percent of the workforce, while Black workers represent about 12 percent, and Asian workers about 7 percent.
The number of workers aged 55 and older is growing, now accounting for over 23 percent of the labor force. As this group ages into retirement, concerns about labor shortages have grown in specific sectors, particularly those requiring skilled labor.
Labor Market Fluidity
Each month, around 5.8 million people are hired while about 5.4 million separate from jobs, either voluntarily, involuntarily, or through retirement. The quits rate remains elevated at about 2.3 percent, signaling continued worker confidence and job-switching behavior.
Open jobs have decreased from their peak but remain high, with around 8.7 million unfilled positions across the economy. Labor demand remains especially strong in healthcare, construction, transportation, and education.
Remote Work and Hybrid Trends
Remote and hybrid work arrangements, though declining from pandemic highs, are still common. Approximately 28 percent of employees in professional occupations work remotely at least part of the time. Many employers have adopted hybrid models to accommodate worker preferences while maintaining office presence.
Job postings now frequently specify remote eligibility as a key feature. Roles in software development, marketing, design, and financial analysis are most likely to offer remote work options.
Education and Skills Alignment
About 38 percent of employed adults hold a bachelor’s degree or higher. Jobs requiring college degrees have generally seen stronger wage growth and lower unemployment rates. However, technical certifications and apprenticeships have grown in importance, especially in trades, logistics, and IT roles.
Skills mismatches remain a challenge, particularly for mid-career workers whose training doesn’t align with evolving labor demands. Workforce development programs, community colleges, and reskilling initiatives are increasingly emphasized by regional labor boards and employers alike.
Labor Productivity Trends
Labor productivity, which measures output per hour worked, has been erratic. After declining in early 2022, productivity saw modest gains in 2023 and 2024. Gains were concentrated in sectors like information technology and finance, while physical industries like retail and hospitality saw smaller improvements.
Increased use of automation, software tools, and AI systems is starting to impact productivity measures, especially in white-collar occupations. However, many companies continue to struggle with integrating these tools efficiently into workflows.
Availability of Workers for Manufacturing Jobs
The U.S. manufacturing sector currently employs approximately 12.9 million people, but this number reflects a long-standing tension between industrial growth and labor supply. While automation and efficiency improvements have allowed manufacturers to increase output without a proportional rise in employment, labor availability remains a limiting factor for future expansion, especially in high-skill and precision-based manufacturing segments.
One of the key challenges is the aging workforce. A significant portion of current manufacturing employees are over the age of 55, and many are approaching retirement. This trend creates a widening experience gap, especially in trades requiring specialized knowledge such as CNC machining, tool and die work, welding, and industrial maintenance. With fewer younger workers entering these trades, manufacturers are facing persistent skill shortages that limit their ability to scale operations or adopt new production technologies efficiently.
Education and training gaps are another concern. While advanced manufacturing jobs increasingly require post-secondary technical education or certification, many regions report shortages in programs offering relevant credentials. Even with federal and state support for technical training, the pipeline of qualified talent is insufficient in many industrial hubs. Some companies have responded by expanding in-house training and apprenticeship programs, but these efforts often take years to yield a fully productive workforce.
Geographic mismatch also plays a role. Manufacturing jobs are frequently located in areas where available labor pools are small or shrinking. In contrast, many workers with potential interest in manufacturing live in urban regions with limited access to industrial employment. This mismatch contributes to unfilled job openings, even in areas with higher general unemployment rates.
The current pool of available workers could support modest job growth in manufacturing—an estimated 200,000 to 300,000 additional jobs over the next 18 to 24 months—if employers are able to attract, train, and retain new entrants. However, sustained growth beyond that level would likely require structural changes, including immigration reform to permit more skilled labor entry, expanded investment in vocational education, and broader awareness campaigns to improve the perception of manufacturing careers among younger generations.
Advanced manufacturing subsectors such as semiconductors, aerospace components, and battery production for electric vehicles are particularly labor-constrained. These areas have the potential for robust growth, but expansion timelines are already being affected by delays in workforce readiness. Without substantial intervention, the sector’s capacity to support broader industrial reshoring efforts or absorb new demand from defense and energy projects may be restricted.
Some manufacturers are turning to automation and robotics to mitigate labor shortages, but this introduces new requirements for technicians and engineers capable of supporting and maintaining these systems. In essence, automation reduces demand for certain manual tasks while increasing the need for high-skilled roles—positions that are currently among the hardest to fill.
The outlook for manufacturing job growth is therefore tightly linked to the availability of both entry-level and technically trained labor. Without an influx of qualified workers, the sector risks facing a capacity ceiling that could stall domestic production growth, particularly in areas deemed important to national competitiveness and economic resilience.
Summary
The U.S. labor market in 2025 reflects a complex but steady environment. Employment remains high, participation rates are stable, and wages continue to grow at a modest pace. While certain sectors face long-term structural changes, others are expanding and reshaping job opportunities. Understanding these trends is essential for evaluating economic health, planning policy decisions, and anticipating future shifts in employment dynamics.
Appendix: Data Sources for U.S. Labor Market Statistics
This appendix provides a summary of the primary sources used to generate the labor market statistics and trends discussed in the article. These sources include federal government agencies and independent research organizations that regularly publish labor-related data and forecasts. The figures reflect data available as of early 2025.
U.S. Bureau of Labor Statistics (BLS)
The BLS is the central source for labor market data in the United States. It provides detailed information through several major statistical programs:
- Current Population Survey (CPS): Offers monthly data on employment, unemployment, labor force participation, and demographic characteristics of workers.
- Current Employment Statistics (CES): Supplies monthly data on nonfarm payroll employment, hours, and earnings by industry.
- Job Openings and Labor Turnover Survey (JOLTS): Tracks monthly job openings, hires, quits, layoffs, and separations.
- Occupational Employment and Wage Statistics (OEWS): Provides annual estimates of employment and wages for over 800 occupations.
- Employment Projections Program: Projects labor market trends and employment changes over a 10-year horizon.
U.S. Census Bureau
The Census Bureau collects demographic and workforce-related data through several key programs:
- American Community Survey (ACS): Provides detailed yearly data on demographic, economic, and housing characteristics of the U.S. population.
- Population Estimates Program: Produces annual estimates of the population by age, sex, race, and region.
U.S. Department of Labor (DOL)
The DOL, particularly through its Employment and Training Administration, supports labor force data and program-level insights:
- Employment and Training Administration (ETA): Publishes statistics on workforce training programs, apprenticeships, and unemployment insurance metrics.
Federal Reserve Economic Data (FRED)
Hosted by the Federal Reserve Bank of St. Louis, FRED compiles and distributes economic indicators including labor market statistics:
- Federal Reserve Economic Data (FRED): Offers time series data on employment, wages, productivity, and more, aggregated from federal sources.
National Association of Manufacturers (NAM) and The Manufacturing Institute
These organizations analyze trends in the industrial workforce and advocate for policy and workforce development initiatives:
- National Association of Manufacturers (NAM) Workforce Data: Provides insights into workforce needs and manufacturing employment conditions.
- The Manufacturing Institute: Researches labor supply and demand in the manufacturing sector and administers skills training initiatives.
Georgetown University Center on Education and the Workforce
This academic center conducts research on the relationship between education, labor markets, and economic opportunity:
- Center on Education and the Workforce: Offers reports on job market projections, skill gaps, and alignment between educational attainment and occupational outcomes.
Each of these sources provides open-access data or public research used to compile employment figures, participation rates, demographic details, sector-level job trends, and workforce availability assessments. Their regular reporting supports a detailed understanding of current labor market dynamics and future workforce challenges.
