With the labor force participation rate at 62.6% and many employers still facing labor shortages, WalletHub today released its report on 2025’s States Where Employers Are Struggling the Most in Hiring, as well as expert commentary.
In order to see where employers are having the most trouble hiring new workers, WalletHub compared the 50 states and the District of Columbia based on the rate of job openings for both the latest month and the last 12 months.
New York Hiring Struggle Stats
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Job openings rate during the latest month: 4.70%
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Job openings rate in the past 12 months: 4.60%
- Overall rank: 18th smallest hiring struggle in the country
Expert Commentary
Why do employers have difficulties in filling employment positions?
“Two reasons come to mind. Compensation and culture. Some companies claim they want to hire the best and top talent, however, the compensation package does not align with that desire. Some companies may have an organizational culture problem, which can cause harm to a company's reputation in the marketplace. A poor organizational culture can lead to a bad reputation and bad reputation can lead to a lack of interest from prospective employees.”
Darryl B. Rice, PhD – Associate Professor, Miami University
“Even if you get the ‘paycheck’ right, there is still a fundamental challenge stemming from a sizeable mismatch between employer expectations and employee needs. Many businesses still operate with outdated management approaches that fail to recognize the evolving nature of work and talent expectations/needs. On the flip side, younger talent is not fully prepared for the demands of the modern workplace. Stalemate. Organizations struggle with creating environments where employees can truly thrive while maintaining high-performance standards. Managers must take time to get to know who they hire and who they are working with at a deeper level so they can optimize expectations and needs.”
J. Craig Wallace, PhD – Professor, Clemson University
What are the best ways for employers to attract and retain employees?
“Some of the levers employers can pull to attract and keep good employees are venerable: market-competitive pay and benefits, above-average pay for the few truly excellent performers, advancement opportunity for the employees craving that, and simply decent treatment of employees. Other factors are more subtle and tend to separate the really good employers from the also-rans: a company culture of serious, considerate interpersonal treatment that translates to mostly calm workplace environments and relations without heaping doses of drama; a focus on steady improvement in big and small ways with overt focus and discussion on how improvement in company results goes hand-in-hand with improvement in employees' skills, experiences, and outcomes (the mutual benefit must be apparent!); and a genuine appreciation for work-life balance that recognizes that burning out employees or ruining their home lives is a losing proposition for all parties.”
James M. Wilkerson, Ph.D., SPHR – Associate Teaching Professor, The Pennsylvania State University, Scranton Campus
“Compensation and culture. Employers have to recognize that Millennials and Gen Z are the two largest generations in the workforce. These two demographics have a heightened level of cynicism toward organizations. They have seen their parents and grandparents get laid off while employers are bringing in record levels of profit. So they approach work from the perspective of ‘companies are not really loyal to employees,’ so they are not necessarily loyal to companies. They want to be paid fairly for the contributions they bring to the workplace and they want to have a company that has a culture that aligns with their personal values. For example, if they value flexible work arrangements, but a company requires them to be in the office every day, they are unlikely to have interest in the company. If they value organizations that create equitable and inclusive work environments for all of its employees, organizations that have rolled back their DEI initiatives won't be attractive places of employment.”
Darryl B. Rice, PhD – Associate Professor, Miami University
In your opinion, will this imbalance in the labor market continue to be an issue throughout all of 2025?
“The labor market imbalance will likely persist throughout 2025, but its nature will evolve. Organizations that adapt their approaches to focus on employee well-being & involvement while maintaining clear performance expectations will fare much better. The key to success lies in creating work environments that balance organizational effectiveness with employee satisfaction by implementing strategic people management practices such as high involvement, where talent comes first.”
J. Craig Wallace, PhD – Professor, Clemson University
“The future of labor force participation in 2025 is uncertain, but a full return to pre-pandemic levels seems unlikely. Structural changes – including demographic aging, evolving worker preferences, and demands for flexibility – represent enduring shifts rather than temporary disruptions. To adapt, employers must modernize their workforce strategies. This includes developing targeted skill-based training programs, often in partnership with technical institutions, to build talent pipelines in affected industries. Organizations should also redesign compensation and benefits packages to emphasize work-life balance and flexibility, particularly for in-person roles where remote work isn't feasible. These positions may require innovative scheduling approaches and time-off policies to remain competitive with remote opportunities.”
Kristin Scott, PhD – Professor, Clemson University