Sweeping layoffs across federal agencies are shaking up the U.S. workforce, impacting multiple departments and job functions, from healthcare to financial services and education. iCIMS, a leading provider of talent acquisition technology, today released the iCIMS Insights April 2025 Workforce Report, unveiling new challenges and opportunities for employers and job seekers alike as tens of thousands of displaced public sector workers flood the private job market. The report also includes perspective and actionable advice for employers and job seekers from iCIMS partner, UKG.
iCIMS data shows that despite all predictions of a gloomy March, the overall labor market has shown surprising resilience. According to the new report, job applications and openings are on the rise, up a whopping 24% and 7%, respectively, since this time last year. Will these positive signs persist as the effects of the federal workforce cuts trickle into the private-sector labor market, or will this optimism give way to chaos?
“The recent wave of federal workforce reductions is introducing a surge of experienced, highly skilled talent from public sector jobs into the private sector,” said Stephanie Sansone, director of talent acquisition, iCIMS. “While this shift brings some uncertainty, it also reinforces the strategic role recruiters play in matching candidates’ transferable skills to the open roles as they enter the market.”
Key hiring trends drawn from iCIMS’ proprietary platform of thousands of customers worldwide:
- Finance sector shines bright amid federal cuts. Mirroring overall labor market trends, financial services showed positive signs of job growth despite ongoing turbulence. Job openings saw an average of 46 applicants in Q1 2025, marking a 13% increase from the previous year (40). But with a heightened volume of candidates to choose from, are finance employers equipped to provide a high-quality hiring experience?
- A silver lining for healthcare amidst federal layoffs. As the nation shed tens of thousands of public healthcare workers, private facilities may see an uptick. Healthcare applications (+17%), openings (+2%) and hires (+1%) all grew in March. Despite the minimal increase in hires, healthcare employers are finding qualified talent as quickly as most sectors. Time to fill (TTF) for healthcare roles is nearly on-par with last year, increasing by just one day, from 39 to 40.
- Education employers seek specialized skills for teaching positions. While applications for education roles rose a modest 4% from March 2024, openings and hires dropped 6% and 4%, respectively. TTF for education jobs is also running over a week longer than other industries, at 51 days. With U.S. public schools struggling to hire qualified teachers, particularly in STEM, recent federal layoffs may provide a chance for education employers to snap up highly skilled workers.
- Activity is on the rise in Washington, D.C. Job applications in the Washington, D.C. area are surging following federal worker reductions, up a whopping 37% year-over-year. A possible indication of the new pool of candidates moving from public to private sector roles, this growth outpaced the overall trend across all sectors (+24%).
Bob Lavigna, senior fellow – public sector at UKG, an iCIMS partner, emphasized how private sector workers can translate their experience for private sector employers: “Displaced federal employees have a lot to offer but will need to translate their federal experience into descriptions that non-government employers will understand. They will need to communicate not just the tasks they performed but the outcomes they achieved.”