Current Events in February 2025

Remember the “Great Resignation” in the wake of the pandemic, when many people quit their jobs and didn’t look for another one? Times have changed.

On social media, many job seekers complain that it has become extremely hard to get hired. New data back that up.

The Bureau of Labor Statistics reports the number of job openings decreased to 7.6 million on the last business day of December. A decline of more than a half-million. Over the month, hires and total separations were little changed at 5.5 million and 5.3 million, respectively.        

Job Openings

For 2024, the number of job openings decreased by 1.3 million and the job openings rate fell to 4.5%.

Here are the industries that decreased their hiring the most:

• Professional and business services (-225,000)

• Health care and social assistance (-180,000)

• Finance and insurance (-136,000) 

At the same time, businesses engaged in the arts, entertainment and recreation increased hiring by 65,000. Economists suggest that industries that have slowed their hiring are reacting to economic uncertainty.

Industries that can’t find enough workers

In something of a paradox, some industries are struggling to find employees. A report by the Associated Builders and Contractors estimates the construction industry will need an additional 439,000 workers this year to meet demand.

Tech companies are also struggling to find employees. Industry sources predict the U.S. technology industry will need another 1.2 million employees by next year.

Independent restaurants are also struggling to hire people. A popular restaurant in suburban Richmond, Va., recently canceled its lunch business due to a lack of staff.

Email Mark Huffman at mhuffman@consumeraffairs.com

President Trump's tariffs are uncertain after they were paused for Canada and Mexico, but a negotiating window remains open until they go into force for China on Feb. 10.

Tariffs are effectively taxes on imports into the U.S., which imported around 36% of consumer goods in 2022, according to the World Bank.

Despite uncertainty, 49% of Americans say they will buy less and 40% will switch to cheaper brands if tariffs raise prices, according to a survey of 1,022 adults by coupon service Smarty.

And half of those surveyed said they will switch to secondhand or local alternatives if tariffs raise prices.

“This research shows that the imposed tariffs will lead to shifts in consumer spending habits this year, with nearly half of US consumers planning to buy less frequently and or switch to cheaper brands if prices continue to increase," said Vipin Porwal, founder of Smarty. "Other consumers are likely to start stocking up on items like clothes and electronics before tariffs take effect, while a large percentage are considering to delay any major purchases for new homes and vehicles.”

What purchases will Americans hold off on if tariffs increase prices?

Cars, appliances and furnture are the purchases respondents said they were the most likely to hold off on because of tariffs.

Automakers with plants in Mexico and Canada could see tariffs slapped on imported vehicles and costs passed onto consumers, if tariffs in those countries go back on the table.

Some 24% of respondents said they would pause buying a car if prices spike up from the tariffs.

"While consumers need to keep buying their daily essentials, we could see a wide swath of Americans simply holding off buying the things they don’t need until seasonal sales discounting provides some relief," Porwal said. "Savvy consumers will look to ramp up savings and rewards opportunities any way they can.”

Email Dieter Holger at dholger@consumeraffairs.com.