March Job Report: AI Hiring Surges While U.S. Job Market Slows

• The labor market is undergoing a stark bifurcation: AI-related hiring continues to expand across new industries, while broader job growth is decelerating, particularly in retail, construction, and hospitality.
• Hiring slowdowns, exacerbated by economic uncertainty and trade concerns, indicate a shift toward cautious workforce planning, favoring upskilling and internal mobility over aggressive expansion.
• Geographic and sectoral disparities highlight the growing importance of remote work and AI-driven efficiencies, as companies recalibrate strategies to navigate a more selective and volatile hiring environment.

AI Jobs on the Rise While Hiring Slows: What It Means for You

Aura Intelligence’s March Job Report reveals two contrasting trends in the labor market. AI hiring remains strong, expanding into new sectors, while the broader U.S. job market is showing signs of slowdown. The report, covering job data through February 2025, highlights the shifting dynamics of employment and what they mean for businesses and job seekers.

Additionally, new data from ADP’s March 5 employment report reinforces concerns about slowing private sector hiring, with weaker-than-expected job growth and increasing uncertainty in trade-related sectors. Comparing this data to last month’s report (February's report covering through January 2025), we can see clear signs of shifting momentum in hiring patterns.

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The Rise of AI Jobs: A Market in Flux but Still Expanding

Key Findings from Aura’s March Job Report

• AI job postings peaked in October 2024, surpassing 22,000. A dip in November and December brought postings down to 17,000, but the market rebounded in January and February 2025, suggesting continued demand for AI talent.

• AI roles in software development increased from 6% in September to 8% in February, showing that AI is being increasingly integrated into mainstream software development.

• Some niche industries saw spikes in AI hiring. For example, the translation and localization industry saw a 59% increase in AI-related job postings. Photography AI jobs rose by 51%, reflecting AI’s growing role in creative sectors. Cybersecurity and international trade also saw moderate increases in AI hiring.

• AI job postings remain concentrated in California, Texas, and New York, where some locations reported more than 2,000 new AI job listings. Smaller states and rural areas continue to see limited AI hiring, suggesting that AI talent demand is still centered around major metropolitan areas.

AI Hiring Compared to Last Month

Last month’s February Job Report showed that AI hiring was expanding into more traditional industries, such as professional services, marketing, and advertising, which saw a 237% surge in AI-related job postings. This month's data suggests a faster pace of AI job growth in some sectors, particularly IT & Services, where hiring momentum strengthened.

Other industries that previously showed strong AI hiring, such as hospitality and broadcast media, maintained steady growth, reinforcing AI’s gradual but continuous spread across disparate fields.

Overall U.S. Job Market: Hiring Slows as Economic Uncertainty Rises

Key Findings from Aura’s March Job Report

• The U.S. job market contracted by 11% in February compared to January.

• Latin America saw an even sharper decline (-23%), while most countries in Europe also fell

• The Asia-Pacific region bucked the trend, reporting a 5% hiring increase.

• California, Texas, and Florida continued to lead in job postings, while smaller states such as Wyoming, Montana, and West Virginia saw significantly fewer job postings.

• The tech, healthcare, and finance sectors also saw moderate hiring declines.

• The education sector was hit hard, with job postings down 28,000 in February.

Job Market Trends Compared to Last Month

• Last month, the February report showed a 27% surge in U.S. job postings in January, fueled perhaps by stronger than expected consumer spending after the holiday season. In contrast, February’s data shows a clear slowdown in hiring momentum.

• Last month, Canada saw a 43% increase in job postings, reversing December’s decline. However, this month’s 10% decline suggests a more moderate hiring pace, with companies taking a more cautious approach.

• The retail sector grew 38% in January, but the latest -20% data suggests a post-holiday slowdown in hiring.

ADP’s March 5 Job Report Confirms Broader Slowdown in Hiring

Aura’s findings are reinforced by ADP’s March 5 report, which showed private sector job creation slowing significantly in February.

Key Takeaways from ADP’s Report

• Only 77,000 private sector jobs were added in February, far below January’s 186,000 new hires and well below the 148,000 forecasted by economists.

• Trade, transportation, and utility jobs lost 33,000 positions, largely due to tariff concerns and economic uncertainty.

• Information services (including AI-related jobs) saw a 14,000 job decline, despite the sector’s expected long-term growth.

However, some industries showed resilience:

• Leisure and hospitality added 41,000 jobs as consumer demand remained strong.

• Professional and business services added 27,000 new positions.

• Financial activities and construction each gained 25,000 jobs, suggesting continued investment in finance and infrastructure.

• Manufacturing added 18,000 jobs, despite broader concerns about hiring pullbacks.

ADP’s chief economist, Nela Richardson, noted that hiring hesitancy among employers reflects policy uncertainty and slower consumer spending, which may continue to impact job growth in the coming months.

What These Trends Mean for Businesses and Job Seekers

AI Talent Remains in Demand, but Hiring is Becoming More Selective

AI-related jobs are no longer limited to traditional software roles. Creative industries, cybersecurity, and international trade are seeing an increase in AI hiring. Professionals with cross-disciplinary AI skills (e.g., AI for marketing, AI-driven design, AI in cybersecurity) will have a competitive advantage.

Companies Need to Be Strategic in Workforce Planning

The broader slowdown in hiring suggests that businesses should prioritize retention and optimize workforce planning and hiring strategies.

• Companies may benefit from skills-based hiring instead of relying solely on degree requirements.

• Slower hiring means businesses may be focusing on internal workforce development and upskilling to fill key positions.

• Business should be strategic about using data-driven methodologies for workforce planning.

Remote Work and Geographic Flexibility Could Be Key to Growth

With job growth concentrated in select states, remote work could help companies access a broader talent pool.

• Aura’s previous workforce data shows that hybrid and remote work models continue to play a critical role in attracting top talent.

Industries Facing Disruption Need to Adapt Quickly

• Retail, trade, and transportation sectors need to adjust to potential tariff-related economic shifts.

• AI hiring will likely continue despite a February decline in more general information economy jobs, making it a long-term priority for businesses investing in automation.

The Workforce is Transforming: Are You Ready?

Aura Intelligence’s March Job Report, covering job data through February 2025, highlights a rapidly shifting labor market. AI jobs continue to grow, with demand expanding into creative and security sectors, while the broader U.S. job market faces economic uncertainty, regional hiring disparities, and slower hiring cycles.

Compared to last month, hiring momentum has slowed significantly, particularly in the retail, IT, and education sectors. Meanwhile, AI hiring remains strong but is shifting away from tech-focused industries toward creative and service-oriented fields.

The latest ADP data confirms that hiring is slowing across key industries, with trade and transportation taking a hit due to tariff concerns. However, leisure, finance, and construction growth remain, signaling opportunities for workers in these fields.

• For businesses, the key to success will be strategic hiring, workforce retention, and investment in AI-driven efficiencies.

• For job seekers, developing AI-adjacent skills, being geographically flexible, and aligning with resilient industries will be critical.

The job market is evolving, but businesses and workers can stay ahead of the curve with the right insights. Stay ahead in the evolving job market. Unlock Aura’s workforce insights today: schedule a demo to see how AI is shaping the future of work.