Number of employees

In 2025, the number of employees in the United States is estimated to reach 159.6 million, representing a 1.1% increase from the previous year. Growth in the national workforce this year is expected to be bolstered by growth in business activity and the likelihood of macroeconomic growth and interest rate cuts. Population growth is also supporting a rise in employment, as labor supply expands. However, several underlying factors, such as demographic changes and slower economic momentum in certain sectors, are expected to moderate overall workforce gains. High-profile issues like an aging workforce and persistent labor mismatches remain central in shaping labor market dynamics.

During the five years to 2025, the total number of employees in the US grew at an annualized rate of 2.3%, reflecting a period marked by both recovery and constraint. The onset of the COVID-19 pandemic in 2020 resulted in a significant contraction in employment, with the workforce falling by 5.8% during the year, one of the steepest declines in recent history. The following year, 2021, saw a strong rebound, with the number of employed rising by 2.9% as government stimulus and widespread reopening of businesses fueled hiring. This recovery accelerated further in 2022, with employment surging by 4.3% as pent-up demand and improved economic confidence drove job gains across most industries. However, in subsequent years, the pace of workforce growth slowed. By 2023, annual growth had eased to 2.2% as stimulus effects waned and businesses faced persistent supply chain and inflationary pressures. In 2024, US employment growth continued to decelerate, increasing by a more modest 1.3%. Elevated interest rates triggered caution among employers, leading to slower hiring and, in some sectors, selective workforce reductions.

Alongside these cyclical economic shifts, long-term trends played a significant role. The labor force expanded but at a slower rate due to lower birth rates, an aging population, and reduced prime-age workforce participation. Furthermore, rapid technological change and ongoing globalization supported hiring in skilled industries but constrained opportunities in traditional manufacturing roles. Immigration policies and shifts in government actions also shaped the workforce over the period, particularly as tighter or more selective immigration settings contributed to labor supply challenges in some markets.

From 2020 to 2025, the US workforce trended upward but at varying rates after the sharp decline caused by the pandemic, reflecting a blend of macroeconomic recovery, ongoing demographic headwinds, and shifts in technology and policy. These trends combined to sustain moderate growth but signaled growing constraints in labor supply that are likely to persist into the forecast period.