SoloPoint Insights

KEY POINTS:

• U.S. unemployment remains stable at 4.2%, showing resilience despite economic uncertainty.
• In April 2025, the U.S. added 177,000 jobs—above the 133,000 forecast—while May saw a slower gain of 139,000 jobs, still slightly exceeding expectations
• 61% of full-time employees are now fully on-site, as hybrid and return-to-office policies tighten.

The first half of 2025 has presented a dynamic and evolving landscape for engineering professionals. As economic pressures rise and employer priorities shift, engineers are facing new expectations, changing work structures, and increased competition. To stay ahead, it’s important for job seekers to understand the key trends shaping today’s job market.

Job Growth Slows, But Remains Positive

The U.S. unemployment rate has held steady at 4.2% as of May 2025, a level maintained within the narrow range of 4.0% to 4.2% since May 2024, with 7.2 million Americans unemployed showing minimal month-to-month change. While these numbers signal stability, labor participation and job growth have softened.

In May 2025, employers added 139,000 new jobs, slightly above expectations. However, previous months saw downward revisions of 95,000 jobs, signaling a slowdown. Two key indicators suggest more people are leaving or are struggling to rejoin the workforce:

1. The employment-to-population ratio dipped to 59.7%, a 0.3% decline.
2. The labor force participation fell to 62.4%

At the state level, California added 68,000 nonfarm jobs over the past year, including 17,700 in April 2025. However, its unemployment rate rose 0.4 percentage points  to 5.3%. Wisconsin added 15,100 jobs during the same period, but lost 1,500 payroll jobs in April alone. Its unemployment rate also rose by 0.4 percentage points, from 2.9% to 3.3%.

Industry Trends: Where the Jobs Are:

While job creation continues, it remains concentrated in specific sectors. Some sectors are expanding, while others are shrinking:

The decline in manufacturing could be a hint that external pressures, such as tariffs, are beginning to affect employment growth.

Return-to-Office: Hybrid Becomes the New Normal

Remote work is no longer the default for many professionals. Since 2024, companies began tightening their return-to-office policies:

• 43% of organizations now follow structured hybrid schedules, up from 20% in early 2023. 
• Fully flexible arrangements fell to 25%, down from 31% in early 2023. 
• Larger companies preferred structured hybrid models, with 73% requiring minimum in-office attendance, compared to only 15% of small businesses.

By early 2025, 61% of full-time employees are fully on-site with only 13% remaining fully remote and 26% working hybrid. Most large companies now expect in-office attendance at least 2.78 days per week as RTO mandates are expected to expand in the second half of the year.

2025 Wage for Engineering Professionals

Understanding the current compensation trends helps engineers better evaluate job offers. Here’s a quick comparison of 2024 median pay vs 2025 average pay for key engineering roles:

Despite ongoing economic headwinds, engineering salaries have remained competitive in the first half of 2025. However, average salaries are leveling off and in some roles, declining slightly.

2025 Engineering Average Base Salary by State

Location still plays a major role in engineering salary. California engineers are seeing stronger compensation while Wisconsin offers lower base pay. Here’s how California and Wisconsin compare in 2025:

The engineering job market in the first half of 2025 remains stable but continues to shift. Staying informed about where growth is happening and how employer expectations are evolving will  help engineers make smart career moves in the second half of the year.

At SoloPoint Solutions, we specialize in helping engineers find roles that align with your skills, career goals, and preferred work structure. Connect with one of our technical recruiters today to explore opportunities in California and Wisconsin’s top industries.