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iCIMS April Workforce Report: Market pressure and federal layoff fallout

April 28, 2025
4 min read
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Caution defined Q1 2025. Despite slowdown predictions, the job market showed surprising momentum in March. But with sweeping federal layoffs looming over the private sector, it’s unclear whether the strength we’re seeing can hold.

This month’s blog explores:

  • Labor market steadiness amid uncertainty
  • Rising pressure on job seekers across industries
  • The private sector impact of federal government layoffs

 

Labor market stability offers a brief reprieve

iCIMS April Workforce Report: Platform indicators

Despite predictions for dramatic swings in workforce activity, March brought continued stability to the job market. We saw a surprising uptick in hiring, applications and openings compared to February, which is encouraging, given recent economic and shifting market uncertainty. This bounce-back is a welcome relief for both employers and job seekers who have been feeling on edge.

Although it’s great to see renewed activity from both candidates and employers, it’s worth noting that the employment landscape still feels uncerain.

 

Turning up the heat on job seekers

iCIMS April Workforce Report: Overall labor market

As the job market shows signs of continued resiliency, it’s not getting any easier for candidates. Applicants per opening (APO) rose from 29 in March 2024 to 34 in March 2025—a 17% growth, signaling a more competitive landscape.

This influx of talent presents a double-edged sword for employers. On one hand, there’s a broader candidate pool to select from. On the other hand, navigating through a sea of resumes to find the right fit becomes more challenging. It’s interesting to note that the average time to fill (TTF) increased by two days compared to 2024.

To stay competitive, recruiters can leverage AI to efficiently sift through large volumes of applications, identify top talent and maintain engagement with candidates throughout the hiring process. Embracing the right AI tools can make quicker decisions in an increasingly large talent pool.

 

The impact of federal government layoffs

The public sector is undergoing a major workforce shift, and the ripple effects are already felt in the private sector—especially in metro D.C. and specific industries, like finance and healthcare.

Finance sector sees a surge in applicant volume

iCIMS April Workforce Report: Finance platform indicators

Are federal cuts pushing talent toward financial services? It could be, as finance is drawing more interest, with applications up 23% since last year.

“We won’t know how many federal employees are displaced, or in what occupations, until the dust settles on the litigation around the administration’s attempts to remove them,” said Bob Lavigna, UKG’s Senior Fellow for Public Sector.

D.C. metro sees surge in job seeker activity

The fallout from federal workforce cuts is already reshaping the job market in the Washington, D.C. area. Applications surged 37% year over year—far outpacing the national average of 24%. Government-affiliated job seekers led the charge, with a 175% spike in applications since late September, compared to a 50% rise among other candidates.

While most federal employees are based outside of D.C., what we’re seeing in the capital could be a preview of what’s to come in other government-heavy regions like California and Texas.

What employers need to know about displaced federal talent

We teamed up with iCIMS strategic partner UKG to understand the opportunity for private employers to tap into the skilled talent pool of federal workers. We learned:

  • About 30% of federal employees are veterans, compared to just 5% in the general workforce
  • Federal employees are generally older with more tenure than private sector counterparts, working more “white collar” jobs
  • Many probationary employees are younger workers

“Displaced federal employees have a lot to offer but will need to translate their federal experience into descriptions that non-government employers will understand,” says Lavigna. “They will need to communicate not just the tasks they performed but the outcomes they achieved.”

 

Looking for more talent insights?

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About the author

Amy Byrnes

Amy brings a knack for storytelling and strategy to her role at iCIMS. A longtime journalist and marketing consultant, she is on a mission to make her content sparkle with details and clarity.

As an essayist, Amy’s writing has appeared in The Washington Post and Family Circle magazine. When not writing, you can find her going for long hikes in the woods with her goldendoodle, working in her veggie garden or researching her next travel destination – which has included spots like Hong Kong, the Greek islands and Newfoundland.

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