BGSF July 2025 Jobs Report: Slowdown Signals Shifting Priorities in the Labor Market

bberrodin
Aug 5, 2025
3 min read

Jobs Added: +73,000 (below forecast of 115,000)
Unemployment Rate: ↑ 4.2% (from 4.1%)
Labor Force Participation: ↓ 62.2% (little changed, but down 0.5 percentage points YoY)
Long-term Unemployment: ↑ 1.8 million
U-6 Underemployment Rate: ~7.7%
Average Hourly Earnings: ↑ .3% to $36.44

“When hiring slows but wages keep climbing, it’s a sign the labor market is recalibrating—not collapsing.” — Kelly Brown, Interim CEO

Only 73,000 jobs were added in July 2025. That’s the smallest monthly gain since early 2021. After months of steady (if cooling) growth, this July’s report puts a fine point on what we’ve been watching for months: the labor market is slowing down, but not breaking.

Let’s dig into what this means for employers and job seekers right now.

Spotlight: Property Rental & Leasing Employment Holds Steady

In July 2025, employment in rental and leasing services rose by 2,100 jobs, marking a small but notable gain in a cooling job market. This sector includes jobs in property management, leasing offices, equipment rental, and related services, and it’s showing resilience even as overall hiring slows.

Here’s what this means:

For employers in this space: Demand for talent remains steady, and turnover is still a challenge. Retaining skilled leasing agents, maintenance professionals, and office staff will continue to require competitive compensation and career development pathways.
For job seekers: The rental market is evolving. With the expansion of multifamily housing, build-to-rent communities, and short-term rental models, roles in this sector are becoming more tech-driven and service-oriented. Candidates with customer service experience, digital fluency, or facilities expertise are especially well-positioned.

“Property leasing and rental employers are still seeing solid demand,” says Kelly Brown. “As housing trends shift, we expect continued job stability—and even growth—in this sector through the rest of 2025.”

Slower Hiring, Stronger Wages

While 73,000 jobs added may feel like a red flag, context is everything. Wage growth remains solid: up 3.9% over the past year, outpacing inflation and signaling that employers are still competing for skilled talent, even if they’re hiring more selectively.

For job seekers, that means opportunities are still out there, but roles may be more specialized, and competition a bit steeper.

What’s Going On With Unemployment?

The unemployment rate ticked up to 4.2%, a modest increase but the highest we've seen since late 2021. A closer look shows a growing share of long-term unemployed—nearly 1 in 4 unemployed individuals have been out of work for 27 weeks or more.

That’s a signal that some workers are having a harder time finding their next role. It’s also a reminder that skills development and job flexibility are more important than ever.

The U-6 underemployment rate, which includes part-time workers who want full-time jobs and discouraged workers, hovers near 8%, indicating underutilized labor remains a quiet undercurrent in this recovery.

What This Means

For Employers

With fewer active job seekers and more selective movement, recruitment strategies should focus on retention, upskilling, and proactive sourcing.
Wage growth continues, and candidates are still weighing total compensation packages, including flexibility, culture, and growth opportunities.
Long-term unemployed and underemployed individuals represent untapped potential. With the right support and training, these workers can become high-impact contributors.
With continued growth in rental and leasing, property teams are still under pressure to staff up, especially for leasing agents, maintenance techs, and community managers. Tenant expectations are high, and skilled talent remains hard to find. Now is the time to lock in long-term hires before demand surges again in the fall.

For Job Seekers

Employers are being choosier, so highlighting technical proficiency, certifications, or in-demand experience is more important than ever.
Consider contract work, upskilling, or even pivoting industries. The market rewards adaptability.
Even though hiring has slowed, opportunities still exist, especially in healthcare, tech, logistics, and skilled trades.
Employers are looking for people who can hit the ground running. If you have experience in leasing, maintenance, or property operations, now’s the time to highlight your ability to manage tenant relationships and keep communities running smoothly.

Looking Ahead

We’re entering a new phase of the labor market—not a downturn, but a slowdown with evolving expectations. The numbers don’t suggest panic. They point to a rebalancing as businesses adapt to economic pressures and job seekers adjust to a more competitive landscape.

At BGSF, we’re here to help both employers and candidates navigate this transition. Whether you're looking to build your team or your career, we’ve got the insights and expertise to guide your next move. Connect with us today!

About BGSF

BGSF is a leading workforce solutions provider that connects employers with top talent across various industries, including property management, professional services, IT, and managed solutions. With a commitment to building strong partnerships, BGSF delivers innovative staffing strategies that empower businesses and job seekers alike.

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