Low Firing, Low Hiring

MESSAGE FROM THE PRESIDENT

September 29, 2025

Federal Reserve Chairman Jerome Powell said something last week that I had never heard before, and I then read a Bloomberg story this morning that described a current economic phenomenon facing employers and employees today. “You’ve got a low-firing, low-hiring environment,” said the Fed chair. The reality is that employers are holding onto employees and are not hiring additional or replacement employees “while trying to figure out which direction the economy is going, even though high-profile corporations including Starbucks, Nike, Inc. and Best Buy Co. have announced staff reductions.” Powell added, “If you start to see layoffs, that could quickly flow into higher unemployment.” There are many contributing factors creating this situation, and it’s too early to point to one or two as the most significant variables.

Youth unemployment is particularly troubling. “Young Americans face one of the toughest job markets in nearly a decade. The unemployment rate among workers ages 16 to 24 jumped to 10.5% in August, the highest since 2016, excluding the Covid era.” One opportunity for this cohort is to earn a certification or credential that is “in demand” and can usually be completed quickly, while they wait for overall hiring conditions to change.

News You Can Use

Pending home sales for August, along with a few Fed speeches, kick off the week of economic news today. On Tuesday, September consumer confidence metrics will be released, and insights into August job openings will be made public too. On Wednesday, the ADP September employment figures are also scheduled for release, along with August construction spending and September auto sales results. Thursday brings August’s factory orders, and we wrap up on Friday with the September U.S. unemployment rate.

This is a very light and short week for companies with earnings calls. Carnival kicks off the week this morning, joined on Tuesday by Nike, Paychex, and United Natural Foods. Conagra and Levi Strauss lead the Wednesday calls.

Michael J. Quaranta

President

Delaware State Chamber of Commerce

Uniquely Delaware

Delaware's Unemployment Rate

Delaware’s seasonally adjusted unemployment rate in August 2025 was 4.3%, up from 4.1% in July 2025. There were 21,900 unemployed Delawareans in August 2025 compared to 18,700 in August 2024. The US unemployment rate was 4.3% in August 2025, up from 4.2% in July 2025. In August 2024, the US unemployment rate was 4.2%, while Delaware’s rate was 3.7%.

In August 2025, seasonally adjusted nonfarm employment was 493,800, up from 493,000 in July 2025. Since August 2024, Delaware’s total nonfarm jobs have increased by a net gain of 3,500, a rise of 0.7%. Nationally, jobs during that period increased by 0.8%. Read more >

With roots stretching back over a century, Allen Harim, headquartered in Millsboro, Delaware, has grown into one of the Delmarva region’s leading poultry companies, providing wholesome, high-quality chicken to families across the United States and around the world.

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