Workspan Daily News Bytes for July 3, 2025

BLS Jobs Report Shows Better-Than-Expected Results for June

The United States jobs picture for June was better than anticipated, as data released Thursday, July 3, by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) showed the country added 147,000 jobs during the month, much higher than the 110,000 that economists had expected. The report also put the unemployment rate at 4.1%, better than the predicted 4.3%.

The report does, however, contrast with July 2 data from payroll and tax services provider ADP, which showed the U.S. private sector shed 33,000 jobs during the month. The BLS and ADP numbers will fuel debates about how the trade war is affecting the American economy.

The new BLS report provided an updated glimpse on:

Unemployment. Among the major worker groups, the unemployment rate for Blacks (6.8%) increased in June, while the rates for adult women (3.6%) and Whites (3.6%) decreased. The jobless rates for adult men (3.9%), teenagers (14.4%), Asians (3.5%) and Hispanics (4.8%) showed little or no change over the month. ... The number of long-term unemployed (those jobless for 27 weeks or more) increased by 190,000 to 1.6 million, largely offsetting a decrease in the prior month. The long-term unemployed accounted for 23.3% of all unemployed people. ... The labor force participation rate changed little at 62.3%, and the employment-population ratio held at 59.7%.
Industrial-sector employment. Government employment rose by 73,000. Employment in state government increased by 47,000, largely in education (+40,000). Employment in local government education continued to trend higher (+23,000). Job losses continued in federal government (-7,000), where employment is down by 69,000 since reaching a recent peak in January. ... Healthcare added 39,000 jobs, similar to the average monthly gain of 43,000 over the prior 12 months. Job gains occurred in hospitals (+16,000) and in nursing and residential care facilities (+14,000). ... Social assistance employment continued to trend up (+19,000), reflecting continued growth in individual and family services (+16,000). ... Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; leisure and hospitality; and other services.
Wages and hours. Average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents, or 0.2%, to $36.30. Over the past 12 months, average hourly earnings have increased by 3.7%. Average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3%, to $31.24. ... The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.2 hours. In manufacturing, the average workweek held at 40.1 hours, and overtime was unchanged at 2.9 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls declined by 0.2 hour to 33.5 hours.

Workplace Discrimination, Harassment Claims at All-Time High

Discrimination, harassment and retaliation claims hit a record high in 2024, averaging 14.7 incidents per 1,000 employees, according to a new report by case management software company HR Acuity.

The report included input from 284 organizations representing more than 8.7 million employees globally, including 125 of Fortune 500 companies.

Some of the key findings include:

Many organizations (68%) fail to track the number of issues per case, creating a blind spot in understanding case complexity and the effectiveness of employee relations and investigations processes.
Only half of organizations track substantiation rates and just 30% track substantiation rates by issue type.
Nearly half lack substantiation data for the most serious issues — including retaliation, harassment and discrimination, leaving their organizations exposed to risk.
Nearly half (44%) of organizations characterized their adoption of artificial intelligence (AI) as non-existent, while one-third of organizations are proceeding with caution. They are exploring capabilities, evaluating appropriate uses and piloting select projects to enhance employee relations processes.
Organizations that use structured investigations processes are more mature in their use of AI and two times more likely to incorporate AI for use in employee relations and investigations.

Longer Hiring Timelines and Hiring Mistakes Proving Costly

Ninety-three percent of hiring managers say the vetting-to-hire process now takes longer than it did two years ago, according to new research from talent solutions and business consulting firm Robert Half.

In the survey of more than 2,200 U.S. hiring managers, respondents said the following parts are taking more time:

Evaluating candidates’ applications (51%)
Checking references or conducting background checks (47%)
Scheduling and conducting interviews (43%)

The report also found:

92% of managers indicate it remains difficult to land skilled talent.
57% plan to expand their teams in the second half of the year, down from 63% six months ago.
30% admit to making a hiring mistake in the past two years, with the most common missteps being a failure to properly assess technical skills (54%) and not evaluating a candidate’s fit with the corporate culture (46%). More than half (57%) said the hiring mistake contributed to additional turnover on the team.

“With more applications coming in for time-sensitive positions, hiring can feel overwhelming,” said Dawn Fay, the operational president at Robert Half. “A flexible staffing model that includes both permanent and contract talent can help meet immediate needs while keeping teams productive.”

Virginia Expands State Law Banning Certain Noncompetes

Effective Tuesday, July 1, Virginia expanded its ban on noncompete agreements for “low-wage employees” to include those workers classified as non-exempt under the Fair Labor Standards Act (FLSA). This means employers in the state are prohibited from entering into or enforcing such agreements with any hourly wage, overtime-eligible workers, regardless of their earnings. The amended law is not retroactive, so it won’t affect covenants entered into or renewed before July 1, 2025.

Virginia law had previously prohibited noncompete agreements with workers earning less than the state’s average weekly wage (currently $1,463.10 per week, or $76,081.20 annually). Under the updates, violations are subject to various penalties, including injunctive relief, damages, attorneys’ fees and civil fines of up to $10,000 per violation.

Law firms advise Virginia employers to review and update their noncompete agreements to ensure compliance with the new law. They should also carefully evaluate the exempt versus non-exempt status of employees when entering into such agreements after July 1, 2025.

UnitedHealth Group Updates Return-to-Office Policy

As reported by The Minneapolis/St. Paul Business Journal, UnitedHealth Group is implementing a new return-to-office (RTO) policy, requiring hybrid employees in Minnesota and Washington, D.C., to work from the office four days per week starting July 7.

The update marks the first formal change to UnitedHealth’s RTO expectations in four years. The employer initially announced a three-day-per-week hybrid model in July 2021.

“Fostering strong connections and in-person collaboration helps strengthen employee teams based in our Twin Cities offices to further enhance innovation and better coordinate the support we provide to the customers we are honored to serve,” the company said in the announcement.

In 2023, UnitedHealth announced it was relocating its Minnetonka, Minn., headquarters to a consolidated campus in Eden Prairie, Minn., citing the need for less office space as remote and hybrid work became more common.

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