Webinar Recap | Updates To The Labor Market & Recruitment Practices

On September 30, our Adams Keegan advisors Charles Rodriguez, Brandon Roland, Kristin Lockhart, and Angie Carrier held a live roundtable discussion focused on the current state of the labor market and the most effective recruitment practices. 

Didn’t catch it? View the full recording here.

What’s happening with labor market and jobs reports
August 2025 marked the first time since 2021 that more people were looking for jobs than there were jobs available – a significant reversal in supply and demand. At the same time, Baby Boomers are retiring in large numbers, creating both a brain drain and an influx of less experienced candidates. 

Industry trends vary widely. Manufacturing in the South is expanding through apprenticeship and on-the-job training programs, while white-collar sectors are experiencing slower hiring and wage stagnation. Employers in these sectors are increasingly rethinking degree requirements, focusing instead on skills and aptitude to control wage costs and create growth opportunities.

One note of caution – because jobs reports rely on surveys and regression analyses, they are backward-looking and easily skewed by seasonal shifts. Employers should be careful not to overinterpret monthly figures when shaping hiring strategies.

What’s happening with candidates
Candidate behavior has shifted along with market conditions. Qualified workers are less willing to take risks in an uncertain economy, opting to stay put rather than make career moves. Passive candidates who might once have been open to new opportunities are now harder to attract, and recruiters are finding that stability is often more appealing than salary.

The quality of the candidate pool is also uneven. Employers are encountering a higher volume of less experienced applicants and fewer highly qualified ones. Among younger candidates, a “three years up or out” mindset has taken hold and without clear growth pathways, they are more likely to move on. Employers hoping to retain top talent must therefore emphasize structured career progression and performance-based growth.

What’s happening with employers
Uncertainty over tariffs, economic policies, and shifting labor dynamics has made companies cautious about filling roles or backfilling vacancies. Many are extending interview cycles while waiting for “the perfect candidate” – often stalls hiring altogether. This hesitation comes at a cost: existing employees absorb the extra workload, sometimes taking on two or three job roles at once. Over time, this overreliance on stable team members could create burnout, multiplying the very staffing challenges employers hope to avoid.

To adapt, the balance lies in upskilling – training employees on the job to grow into adjacent roles and to work alongside emerging technologies. This approach fills gaps and strengthens retention by showing employees a clear path to growth. Applicant tracking systems (ATS) can support this transition, but employers are reminded to avoid over-relying on automated filters. A resume may not check every box yet still signal a strong hire if skills are transferable.

AI effects on planning and recruitment
Artificial intelligence (AI) is rapidly reshaping how employers and candidates interact. Candidates are increasingly using AI tools to reframe their resumes to mirror job descriptions, sometimes creating documents that look flawless but overstate their actual abilities. This trend makes it more important than ever to preserve the human element in recruiting. Behavioral interviews, situational questions, and real-world examples are critical to validating whether a candidate can deliver on what’s listed in their application.

On the employer side, AI can streamline processes like generating job descriptions, developing interview templates, and sourcing passive candidates. Used thoughtfully, it can create a more equitable process by standardizing questions and evaluations. Yet AI is only as good as the guidance it receives. Employers must refine tools around the actual skills and values that matter most to their organization.

The team also discussed hiring compliance updates and audience questions including topics like non-compete agreements, offer letters versus employee agreements, continuing benefit offerings past separation, background check and drug test timing, and more.

Watch the webinar here and give yourself about 40 minutes to become fully immersed in the conversation.