LinkedIn Jobs Report Shows October Hiring Down 24% From Pre-Pandemic Levels

This analysis is based on LinkedIn’s October 2025 Workforce Report [1] published on November 6, 2025, which revealed significant labor market weakness across the United States. The report, presented by Kory Kantenga, LinkedIn’s Head of Economics for the Americas, shows that October’s hiring rate was down 24% from pre-pandemic levels, indicating sustained structural shifts in employment patterns [1].

The labor market data aligns with broader market weakness observed on November 6, 2025, where major indices experienced significant declines. The technology-heavy NASDAQ Composite fell 1.74% to 23,053.99, while the S&P 500 dropped 0.99% to 6,720.31 [0]. The market reaction reflects concerns about economic growth prospects amid persistent hiring weakness.

The LinkedIn report reveals significant variation in hiring performance across industries. Technology, Information, and Media showed a 2.8% year-over-year decline in hiring, with a more pronounced 4.1% month-over-month decrease in September [1]. This technology sector weakness contributed to the NASDAQ’s underperformance, which fell 1.74% on the day [0].

Economically sensitive sectors experienced the most severe market declines, with Industrials dropping 2.33% and Consumer Cyclical falling 2.14% [0]. These sectors are particularly vulnerable to labor market weakness as they rely heavily on consumer spending and business investment.

Conversely, defensive sectors showed relative strength, with Healthcare gaining 0.43% and Real Estate adding 0.09% [0], suggesting a flight to safety amid labor market concerns.

All 20 major metropolitan areas tracked by LinkedIn showed hiring declines from August to September 2025, indicating broad-based weakness rather than regional disparities [1]. However, some areas showed relative resilience, with Miami-Fort Lauderdale achieving a 2.9% year-over-year gain, while most other metros experienced declines.

The hiring slowdown has been persistent throughout 2025, with an overall decline of more than 7% since the start of the year [1]. This sustained weakness suggests structural factors rather than temporary fluctuations in the labor market.

A critical insight from the LinkedIn data is the divergence between hiring rates and overall employment growth. While hiring rates remain significantly below pre-pandemic levels, LinkedIn’s data suggests a moderate payroll employment increase of +55K in September [1]. This indicates potential quality issues in job creation, with new positions potentially being lower-quality or part-time roles.

The sustained labor market weakness may influence Federal Reserve monetary policy decisions. With hiring rates down 24% from pre-pandemic levels despite overall economic stability, the Fed may face pressure to maintain accommodative monetary policy longer than anticipated, particularly if consumer spending begins to weaken due to reduced hiring opportunities.

The data reveals significant opportunities for sector rotation. Industries with relatively strong hiring performance, such as Farming, Ranching, Forestry (+7.7% month-over-month) and Wholesale (+2.5% month-over-month) [1], may offer better growth prospects compared to severely impacted sectors like Government Administration (-17.1% year-over-year) and Oil, Gas, and Mining (-16.0% year-over-year).

1. Consumer Spending Vulnerability
   : Persistent hiring weakness may impact household income growth, potentially affecting consumer spending during the critical holiday season.

2. Economic Growth Sustainability
   : The 24% decline from pre-pandemic hiring levels suggests the economy may be operating below potential growth rates.

3. Corporate Earnings Pressure
   : While reduced labor costs might benefit margins short-term, weaker consumer demand could offset these benefits across multiple sectors.

• Weekly initial jobless claims for real-time labor market stress signals
• Consumer confidence indices to gauge household sentiment impact
• Retail sales data to assess consumer spending resilience
• Federal Reserve policy statements for response signals to labor weakness

The current environment presents several strategic considerations:

1. Defensive Sector Strength
   : Healthcare and Real Estate showed resilience during market weakness [0], suggesting potential defensive positioning opportunities.

2. Quality Employment Focus
   : Companies with strong employee retention and quality job creation may outperform those relying on high-volume, low-quality hiring.

3. Productivity-Driven Growth
   : Firms with strong productivity metrics may better navigate labor market constraints while maintaining growth trajectories.

The LinkedIn October 2025 Workforce Report indicates significant labor market weakness with hiring rates down 24% from pre-pandemic levels [1]. This broad-based decline affects most industries and metropolitan areas, with technology sector hiring falling 2.8% year-over-year. The market reacted negatively to this news, with the NASDAQ Composite declining 1.74% and economically sensitive sectors experiencing the steepest losses [0].

The data suggests structural shifts in employment patterns rather than temporary fluctuations, with all major metropolitan areas showing hiring declines and sustained weakness throughout 2025. While overall employment shows modest growth, the significant decline in hiring rates indicates potential quality issues in job creation.

This labor market weakness may influence Federal Reserve policy decisions and presents both risks to consumer spending and opportunities in defensive sectors. Decision-makers should monitor leading indicators including jobless claims, consumer confidence, and retail sales for additional signals on economic trajectory.