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Hiring freezes and a renewed focus on upskilling are giving rise to the ‘Great Stay’, a period marked by lower turnover as employees ditch job hopping and prefer to stay put.
After years of elevated turnover during the “Great Resignation” and widespread job-hopping, U.S. companies are now entering what many are calling the “Great Stay”. According to Bureau of Labor Statistics data from June 2025, quit rates have fallen 33% to 2.0%, suggesting that fewer employees are leaving their roles.
What we did
At the same time, our Careerminds surveyed 600 HR managers to understand how organizations are adapting. The results reveal that HR leaders are navigating widespread hiring freezes by prioritizing internal mobility. Instead of relying on external hires, they are turning inward and working on reskilling and the redeployment of their workforce to fill critical roles.
The Great Hiring Freeze
The United States labor market slowed sharply over summer, with Bureau of Labor Statistics revealing that employers added just 106,000 jobs over May, June and July – a 72% decrease from the three months previous.
Over two-thirds of companies have frozen hiring, with entry-level roles the most affected
The survey found that 66.7% of employers have implemented hiring freezes, with 22.1% stopping recruitment across all roles and 44.6% limiting freezes to specific departments or positions.
Among those with partial freezes, 36.1% of companies have paused hiring for all entry-level roles. 2025 graduates have been faced with a tough challenge, given entry-level hiring is reportedly down 23% compared to pre-pandemic levels, according to figures from LinkedIn.
Specialist and technical positions are the least affected, with only 8.3% of companies implementing freezes in these areas.
Hiring will stay frozen for another two years for 1 in 6 companies
When will hiring in the U.S. return to ‘normal’? Careerminds’ data finds that companies are taking a cautious approach to the uncertain market through hiring freezes. Nearly half (48.5%) of companies expect recruitment to remain paused for the next twelve months, while 16.2% anticipate that hiring will not resume for another two years. One-third of HR managers (32.4%) expect hiring to resume after six months.
These prolonged hiring freezes stem from a mix of economic and organizational challenges that shape companies’ decisions to pause recruitment.
Budget cuts are the main motivator for hiring freezes
A major motivator for conducting hiring freezes, cited by 59.6% of companies in the Careerminds survey, is budget constraints or the need to reduce costs. Hiring freezes are one of several strategies organizations use to manage HR costs, alongside reduction measures such as layoffs, reduced overtime, or limiting temporary and contract staffing.
Other key drivers for a halt on recruitment are fears of a looming recession and overall economic uncertainty, highlighted by 52.8% companies.
Interestingly, 30.6% of companies have paused hiring due to artificial intelligence eliminating the need for new roles entirely, motivating HR managers to reevaluate the skills needed among their workforce. This trend is reflected in real company practices as well — for example, Shopify CEO Tobi Lütke shared in a striking memo on X that no new hires would be made until it was proven that artificial intelligence could not perform the role.
Where is AI reshaping your workforce?
With 30% of companies already pausing hiring due to AI, it’s critical to know which skills still matter. Career Frameworks give you a clear view of roles that can evolve with technology and those that require human expertise.
Creating Movement Inside the Freeze
With hiring paused and recruitment slowed, workforce behaviour has given way to “job hugging”, with the Bureau of Labor Statistics citing the quit rate among US workers hit a three month low in June 2025.
What is ‘job hugging?
The act of holding onto your current job at any costs rather than pursuing new opportunities, often due to economic uncertainty, limited external hiring or risk in changing job.
With employees holding tight to their roles, companies are rethinking how to create movement inside their walls, inciting HR managers to review career frameworks and internal mobility to keep workers engaged and ensure critical responsibilities don’t go unaddressed.
Over two-fifths of HR managers are focusing on upskilling their workforce
How are companies navigating hiring freezes when faced with business-critical roles? Two-fifths (43%) of HR managers report that they are focusing on upskilling their current workforce to promote staff internally.
When asked which skills and areas were most urgent, 46% of HR managers highlighted artificial intelligence and other technology skills, showing the growing importance of digital capability across the market.
Another 35.5% are prioritizing leadership and people management skills; a notable statistic given that effective management remains uniquely human and cannot be replicated by technology. The plan to upskill also addresses a known gap: studies show that 82% of managers step into leadership positions without receiving any formal training.
Commenting on the findings, Raymond lee, President of Careerminds, explains:
“We’re seeing a clear shift in how HR leaders are approaching talent needs. Instead of defaulting to external hires, many are upskilling and reskilling their existing workforce. This not only helps to control costs in a tighter budget environment but also strengthens employee loyalty.”
“The rapid growth and adoption of Artificial Intelligence has introduced an area where skills are becoming obsolete; however, we’re seeing a clear shift in how HR leaders are approaching talent needs. They’re prioritizing skills such as risk management and leadership to fill essential gaps that aren’t filled by artificial intelligence.”
“By upskilling employees, we expect to see an uptick in not only retention rates across the market over the coming months but also overall employee satisfaction at work. After all, upskilled employees are satisfied employees.”
Career Frameworks: Building Growth in a Frozen Market
With hiring slowed and employees choosing stability over job changes, companies need new ways to create movement inside their organizations. Our research shows HR leaders are already turning to upskilling and internal mobility to fill important roles and that’s exactly where career frameworks can make a difference.
A clear, well-communicated career framework provides employees with visibility on how they can grow, while giving leaders a structure to align talent strategy with wider business goals. By mapping our skill development and career ladders, organizations can:
- Improve retention and strengthen employee loyalty
- Boost motivation and trust in leadership
- Enhance employer branding by showing clear growth opportunities
- Control costs by reducing reliance on external hires
Careerminds’ Career Frameworks tool brings this to life by allowing employees to track skill expansion over time and giving managers real data to support one-on-one and progression conversations. It’s a cost-effective way to keep talent engaged and essential roles filled, even in a frozen market.
Career Frameworks is now part of the comprehensive suite of services offered by Careerminds, alongside our renowned outplacement services and career coaching.
Methodology:
This report is based on a survey conducted by Careerminds in August 2025, gathering insights from 600 HR professionals across the United States. All respondents were currently working in full-time HR roles.
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