Hello and welcome to Work Week, the podcast where we tackle one big question about the rapidly evolving workplace, explore what the research says about the issue, and explain what it all means for you.

I’m Dr. Gabby Burlacu, Senior Manager at The Upwork Research Institute. What you’re hearing is a digital proxy of my voice, created by our team with help from AI. 

Today’s episode covers a labor market dynamic that doesn’t grab headlines the way mass layoffs or job booms do, but nevertheless quietly affects leaders, workers, and job seekers alike.

The big question for this week is: What are the impacts of a low hire, low fire job market?

In a low hire, low fire job market businesses add and cut jobs at a significantly lower rate than normal. This creates a situation in which job openings and turnover are stagnant, and businesses are cautious. The result is a labor market that feels, in a word, stuck.

But a slowed labor market doesn’t mean a slower pace of work. If anything, in today’s economy, the pace of work is speeding up as companies and workers navigate increased expectations for productivity. 

Let’s look at what the data shows. 

Through the first three quarters of twenty twenty-five, the U.S. labor market was marked by unusually slow movement. Data from Vanguard suggests that the national job growth rate in seven of the first nine months of the year was the slowest sustained pace since two thousand and nine, during the Great Recession. For context, the recent post-pandemic peak was over three times higher, in twenty twenty-two.

Meanwhile, long-term unemployment creeped upward. As of August, one point nine million people had been out of work for more than six months — the highest level since early twenty twenty-onetwo.

The job market is showing signs of a freeze — with less worker movement across the board. This is in stark contrast to the Great Resignation, when almost four and a half million workers quit their jobs each month between November twenty twenty-one and April twenty twenty-two. 

For leaders, this low hire, low fire job market often means delaying headcount growth, reallocating budgets, and trying to maintain momentum with teams already in place — all while demand for innovation and results continues to accelerate.

For workers, it means fewer job openings, longer timelines for hiring decisions, and more people staying in their current roles — even if they’re ready to advance or are no longer fully engaged.

So how do both sides move forward in this time of stillness?

Let’s explore four practical strategies that can help you stay agile — whether you’re leading a team or leading your own career.

First, invest in upskilling and reskilling. When external movement slows, internal development becomes more essential.

If you’re a leader, this is your moment to build strength from within. Instead of trying to hire your way into new capabilities, you can develop them in-house. This may mean creating learning tracks, assigning stretch assignments, or encouraging peer-to-peer mentorship. In addition to being cost-effective, this approach shows your team that you’re invested in their growth, even in a tight economy.

If you’re a worker, don’t wait for permission to grow. Identify a high-value skill in your field — maybe something technical like data literacy or stakeholder communication — and take a first step. Consider joining a workshop, exploring an online course, or even shadowing a colleague. The goal is to stay in motion, even if the next formal internal or external job opportunity isn’t yet available. In short: movement doesn’t always mean changing jobs. Sometimes, it means changing within your job.

Second, leverage technology to amplify capacity. In this paused labor market, many teams are being asked to do more with fewer resources. This is where technology — especially automation and AI — come into play and become a critical enabler of productivity and innovation.

For leaders, this is an opportunity to identify where outdated systems are dragging down performance. Can you automate a reporting process using an AI tool? Introduce a tool to speed up approvals? Streamline how your team collaborates? You don’t need to adopt every trend or platform — but investing in the right tools can boost productivity without overburdening your workforce.

For workers, building tech fluency — even if you're not in a technical role — can make you more effective and more visible. If you know how to use AI tools for summarizing, brainstorming, or data analysis, this can make you an asset on your existing team. You’re not just surviving the slowdown — you’re becoming more valuable along the way. 

Third, prioritize engagement to prevent stagnation. Low turnover can create a false sense of stability — but this doesn’t always mean that people feel energized or fulfilled in their roles. When people are prevented from making external or vertical moves in their career, supporting them becomes even more important.

Leaders should keep a close eye on engagement to ensure workers don’t feel stretched too thin or undervalued. Consider questions such as: Are workers on your team challenged? Are they learning? Are they still aligned with the mission? This is the time for frequent, open-ended conversations. Not simply check-ins about task progress, but real dialogue about motivation, capacity, and burnout risk.

Workers should also reflect honestly on their current mindset and ask themselves questions such as: Am I coasting? Am I mentally checked out? Am I waiting for something to change — without taking any action myself?

Low churn doesn’t mean low risk. It simply means the risks are quieter — and often internal. By overlooking engagement, you risk lost productivity and delayed business outcomes. 

Fourth, adopt freelancing strategically. In this low-hire economy, many companies still need to meet growing demands. However, organizations often can’t commit to adding full-time headcount. This is one reason that many are turning to flexible talent models to bring in freelance or contract professionals to fill skill gaps on a project basis.

This is happening across industries. A survey of SMB leaders distributed by The Upwork Research Institute found that sixty-eight percent of respondents planned to expand their use of freelancers in the third quarter 2025 — even amid economic headwinds and lower full-time hiring rates. Additionally, a survey of full-time workers shows that nearly half — forty-nine percent — of full-time employees said they rely on freelancers to help them do their jobs effectively.

For leaders, this model offers a path forward when budgets are tight. Want to experiment with a new product or update your website? Bringing in a freelance product manager or designer for an initial project can help you move quickly — without the overhead of a full-time hire. And in many cases, these relationships evolve into longer-term partnerships. Some companies use contract-to-hire models to reduce hiring risk, while others build bench strength through repeat collaborations with trusted freelancers who become integral to their teams over time.

For workers, freelance work can be a way to build new skills, gain exposure to new industries, or create multiple income streams. A project here or there can strengthen your portfolio and expand your network — both of which can position you for future opportunities once the job market shifts and hiring picks up. Or, you may realize full-time freelancing offers the flexibility you need to set your own rate and schedule, while allowing you to work with interesting clients. 

These four strategies — upskilling, integrating technology, prioritizing engagement, and turning to freelancing — aren’t about waiting for job market conditions to change or improve. They’re about creating momentum within the reality that organizations and workers are currently having to navigate.

Whether you’re leading a team, growing your own career, or both, the goal is the same: keep moving and remain agile, even when the broader market feels stuck.

Let’s close the episode as we always do, with an action step you can implement immediately and a question to reflect on throughout the week.

If you’re a leader, here’s your action step: Identify one business need or growth opportunity you’ve put on hold due to limited bandwidth. Ask yourself: could this project be handled by flexible, external support? Pilot one freelance or contract engagement to test how this model works for your team.

And if you’re an individual worker: Choose one skill that would make you more agile — in your current job or in a future opportunity. Block out one hour this week to start learning that skill. Small steps compound over time — and skill-building is always within your control. Once you develop a new skill, consider looking for a freelance project to put it into action. 

And here’s your reflection question for the week: In a market with limited movement, what’s one way you can create progress — not by waiting for change, but by initiating it?

Because the truth is, a slow labor market doesn’t have to mean a stuck business or a stalled career. Agility goes beyond reacting quickly — it’s about choosing how to move when movement feels challenging.

That’s a wrap for this episode of Work Week. I’m Gabby Burlacu and today, we explored the ripple effects of a low hire, low fire economy — and how both leaders and workers can stay agile, even when the job market feels paused. Thank you for listening. If this episode helped reframe how you think about your role, your team, or your next move, we’d love for you to share it with a colleague or leave a review. And don’t forget to subscribe for weekly insights on the future of work.