Shifts in Workforce Demand: 2025–2026 Trends Across U.S.
Times have changed. In May of 2023, 44% of business owners had strong workforce demand, according to a National Federation of Independent Business survey. Back then, businesses faced systemic labor problems that, according to chief economist at Fifth Third Bank Jeffrey Korzenik, were due to outdated talent retention methods and antiquated recruitment methods. In little under two years, there has been a stark shift.
In 2025 and projected into 2026, labor market trends reveal a stark contrast between shrinking traditional sectors and expanding technology-driven or service-oriented fields. These shifts are influenced by automation, evolving consumer behavior, demographic changes, and the transition to green energy. Employers across industries are re-evaluating their workforce strategies to match the pace of economic transformation, resulting in both opportunities and challenges for job seekers.
Declining Sectors
Traditional retail is seeing a steady decrease in labor demand due to the continued rise of e-commerce and automation in logistics and customer service. Similarly, manufacturing jobs—especially in industries slow to modernize—are being reduced or reshaped by robotics and AI, leading to fewer opportunities for low-skill, manual labor. Office administration and clerical roles are also contracting as businesses embrace AI-driven tools for scheduling, document processing, and data management.
Expanding Sectors
Conversely, technology and healthcare are the two fastest-growing employment sectors. The workforce demand for cybersecurity experts, AI specialists, and software developers continues to outpace supply as companies invest in digital infrastructure and automation. In healthcare, growth is driven by an aging population and increased demand for personalized and home-based care, creating surges in nursing, medical tech, and support roles. Clean energy is another booming sector, with wind, solar, and battery storage industries hiring aggressively for installation, maintenance, and R&D positions. Additionally, education and skilled trades such as HVAC, electrical, and plumbing are experiencing robust workforce demand, fueled by infrastructure investments and a generational skills gap in hands-on professions. These evolving dynamics underscore the importance of workforce retraining and career agility in the modern labor market
How 10 Major Metro Areas Are Addressing Shifts In Workforce Demand
Supportive Colleges analyzed workforce demand initiatives for 10 major metros. The metros were selected for their size and programs. It is our belief at Supportive Colleges that holistic solutions that embody public sources and private sources are in order. Since one size does not fit all and challenges vary by region, we encourage the reader to focus on the similarities amongst regions and to contextually understand the different approaches each location is taking when it comes to workforce demand and development.
1. Los Angeles, California
Unemployment Rate
| 2022 | 2023 | 2024 |
| 5.30% | 5.20% | 5.90% |
Labor & Skills Shortages
Healthcare:
Nurses, doctors, home health aides, mental health professionals.
Hospitality and Tourism:
Hotel workers, chefs, servers, housekeepers, tour guides
Construction and Skilled Trades:
Carpenters, electricians, plumbers, roofers, construction laborers.
Average Rent:
1 Bedroom, 1 Bathroom near entertainment with parking
| Los Angeles | $2,950 | $2,100 – $4,500 |
Cost of Living Outlook: 144.1 (High)
Workforce Development Programs:
- Program: LA’s Promise – Provides financial aid, career coaching, and support services for adults without a high school diploma to earn their GED.
- Eligibility: Age 18-24, LA resident, no high school diploma.
- Incentive: Up to $5,000 per semester for eligible costs like tuition, books, childcare.
- Impacts: https://www.lapromisefund.org/wp-content/uploads/2023/03/LA-Promise-Fund-Impact-Report-FINAL-2022.pdf
Los Angeles Workforce Demand and Development Outlook
https://labusinessjournal.com/special-reports/los-angeles-employers/
Los Angeles County’s job outlook is mixed due to population out migration for affordable housing, strikes in the entertainment sector, an aging and retiring population in healthcare, and increased funding in the aerospace/defense industry. This has led to unexpected growth fluctuations in Southern California.
2. Chicago, Illinois
Unemployment Rate
| 2022 | 2023 | 2024 |
| 5.10% | 4.60% | 4.60% |
Labor & Skills Shortages
Manufacturing:
Production workers, machine operators, assemblers, inspectors.
Transportation and Logistics:
Truck drivers, warehouse workers, delivery drivers, logistics coordinators.
Information Technology and Software Development:
Software engineers, data analysts, cybersecurity specialists, network administrators.
Average Rent:
| $1,850 | $1,300 – $2,800 |
Cost of Living Outlook: 101.8 (Above Average)
Chicagoland Workforce Development programs
- Program: Chicago CRED – Funds vocational training for adults in high-demand fields like healthcare, IT, and advanced manufacturing.
- Eligibility: Age 18+, Chicago resident, low-income.
- Incentive: Up to $5,000 for tuition, plus living expenses stipend and employment placement assistance.
3. Atlanta, Georgia
Unemployment Rate
| 2022 | 2023 | 2024 |
| 4.20% | 3.80% | 3.60% |
Labor & Skills Shortages
Logistics and Warehousing:
Warehouse workers, truck drivers, forklift operators, logistics managers.
Professional and Business Services:
Accountants, consultants, marketing specialists, HR professionals.
Construction and Skilled Trades:
Electricians, plumbers, HVAC technicians, carpenters, construction laborers.
Average Rent:
| $1,650 | $1,000 – $2,500 |
Cost of Living Outlook: 94.5 (Average)
Atlanta Workforce Demand and Development programs
- Program: Career Wise Atlanta– Offers tuition assistance, career training, and job placement for adults seeking skills in high-growth industries.
- Eligibility: Age 18+, Atlanta resident, unemployed or underemployed.
- Incentive: Varies depending on program chosen, may include tuition assistance, living stipend, and childcare vouchers.
4. Seattle, Washington
Unemployment Rate
| 2022 | 2023 | 2024 |
| 3.8% | 3.6% | 4.40% |
Labor & Skills Shortages
Technology and Software Development:
Software engineers, data scientists, cyber security specialists, cloud computing professionals.
Healthcare:
Nurses, doctors, home health aides, mental health professionals.
Education:
Teachers, counselors, special education instructors, school psychologist
Average Rent:
| $2,400 | $1,700 – $3,500 |
Cost of Living Outlook: 134.8 (High)
Seattle Workforce Demand and Development Programs
- Program: Seattle Colleges Promise – Provides free community college tuition for eligible residents.
- Eligibility: Age 18+, Washington resident, low-income, no prior college degree.
- Incentive: Free tuition and fees at Seattle Colleges (community college system).
5. Dallas-Fort Worth, Texas
Unemployment Rate
| 2022 | 2023 | 2024 |
| 4.10% | 4.00% | 4.10% |
Labor & Skills Shortages
Professional and Business Services:
Accountants, financial analysts, marketing specialists, human resource professionals.
Healthcare:
Nurses, doctors, home health aides, physical therapists.
Construction and Skilled Trades:
Electricians, plumbers, carpenters, construction laborers, HVAC technicians.
Average Rent:
| $1,450 | $900 – $2,200 |
Cost of Living Outlook: 95.1 (Average)
Dallas-Fort Worth Workforce Demand and Development Programs
- Program: Skill Up Dallas – Supports career training and upskilling for adults in various fields.
- Eligibility: Age 18+, Dallas resident, unemployed or underemployed.
- Incentive: Varies depending on program, may include tuition assistance, job placement services, and childcare vouchers.
6. Boston, Massachusetts
Unemployment Rate
| 2022 | 2023 | 2024 |
| 4.50% | 4.30% | 4.40% |
Labor & Skills Shortages
Healthcare:
Nurses, doctors, home health aides, pharmacists, technicians.
Education:
Teachers, professors, counselors, special education instructors.
Professional and Business Services:
Lawyers, accountants, consultants, engineers.
Average Rent:
| $2,600 | $1,800 – $3,800 |
Cost of Living Outlook: 135.7 (High)
Boston Workforce Development Programs
- Program: MassHire Career Technical Education Scholarships – Funds short-term career training programs leading to high-demand jobs.
- Eligibility: Age 18+, Massachusetts resident, no prior bachelor’s degree.
- Incentive: Up to $2,500 per semester for tuition and fees.
7. Denver, Colorado
Unemployment Rate
| 2022 | 2023 | 2024 |
| 3.70% | 3.40% | 4.50% |
Labor & Skills Shortages
Hospitality and Tourism:
Hotel workers, chefs, servers, housekeepers, tour guides.
Construction and Skilled Trades:
Carpenters, electricians, plumbers, roofers, construction laborers.
Healthcare:
Nurses, doctors, home health aides, mental health professionals.
Average Rent:
| $1,950 | $1,200 – $3,000 |
Cost of Living Outlook: 107.5 (Above Average)
Denver Workforce Development Programs
- Program: Denver Works – Connects residents to workforce development resources and training programs.
- Eligibility: Age 18+, Denver resident, seeking career training or employment assistance.
- Incentive: Varies depending on program, may include tuition assistance, living expenses support, and job placement services.
8. Miami, Florida
Unemployment Rate
| 2022 | 2023 | 2024 |
| 5.10% | 4.30% | 2.80% |
Labor & Skills Shortages
Hospitality and Tourism:
Hotel workers, chefs, servers, housekeepers, tour guides.
Construction and Skilled Trades:
Carpenters, electricians, plumbers, roofers, construction laborers.
Professional and Business Services:
Accountants, financial analysts, marketing specialists, healthcare administrators.
Average Rent:
| $2,200 | $1,500 – $3,200 |
Cost of Living Outlook: 120.3 (High)
Miami Workforce Development Programs
- Program: Miami Bridge to Workforce – Offers career assessment, training, and employment support for eligible residents.
- Eligibility: Age 18+, Miami resident, low-income or unemployed.
- Incentive: Varies depending on program, may include tuition assistance, living expenses stipend, and job placement services.
9. Philadelphia, Pennsylvania
Unemployment Rate
| 2022 | 2023 | 2024 |
| 4.70% | 4.30% | 4.60% |
Labor & Skills Shortages
Healthcare:
Nurses, doctors, home health aides, technicians, pharmacists.
Manufacturing:
Production workers, machine operators, assemblers, inspectors.
Professional and Business Services:
Accountants, lawyers, consultants, engineers
Average Rent:
| $1,700 | $1,100 – $2,600 |
Cost of Living Outlook: 103.6 (Above Average)
Philadelphia Workforce Development Programs
- Program: PASE (Philadelphia Adult Skills Education) – Provides GED/HSE preparation and career training for adults.
- Eligibility: Age 18+, Philadelphia resident, no high school diploma or looking to upgrade skills.
- Incentive: Varies depending on program, may include tuition assistance, childcare vouchers, and transportation reimbursement.
10. Washington D.C
Unemployment Rate
| 2022 | 2023 | 2024 |
| 3.80% | 3.50% | 5.60% |
Labor & Skills Shortages
Information Technology and Software Development:
Software engineers, data analysts, cyber security specialists, network administrators.
Government and Public Administration:
Policy analysts, administrative assistants, program managers, data analysts.
Professional and Business Services:
Lawyers, consultants, accountants, engineers.
Average Rent:
| $2,200 | $1,500 – $3,300 |
Cost of Living Outlook: 124.4 (High)
Washington, DC Workforce Development Programs
- Program: DC Tuition Assistance Grant (DCTAG) – Provides financial aid for eligible residents to attend public colleges and universities in D.C.
- Eligibility: Age 18+, D.C. resident, low-income, enrolled in an approved program.
- Incentive: Up to $12,000 per year towards tuition and fees.
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