Key Points:

  • Scientific research & development job postings have dropped by 18% since January 20, likely a result of cuts to federal spending and contracts. 
  • Job postings in the city of Washington, D.C., have fallen by 17% over the same period, driven by declines in postings for administrative assistance, HR, and accounting. 
  • US construction, manufacturing, and hospitality postings have been relatively flat amid shifts in immigration and trade policy. 

Our monthly Labor Market Update examines important trends using Indeed and other labor market data. Our US Labor Market Overview Chartbook provides a more comprehensive view of the US labor market. Data from our Job Postings Index — which stood 7% above its pre-pandemic baseline as of May 16  — and the Indeed Wage Tracker (including sector-level data) are regularly updated and can be accessed on our data portal. 

Most official reports are still failing to capture the full labor market impact of the rapid policy changes that have marked the first few months of 2025. But Indeed job postings data show that policy changes and federal spending cuts are beginning to impact the labor market, particularly in and around Washington, D.C., and among the research and consulting roles that rely on federal funds. 

Additionally, the data show that employer demand for construction, manufacturing, and tourism roles has held up, despite emerging concerns around disruptions to their supply of parts, labor, and visitors. In other words, while some employers, policymakers, and job seekers are in a “wait-and-see” mode as changes ripple through the economy, others are already adapting to policy shifts. 

R&D roles hit first by cuts to federal spending

Cutting federal spending, contracts, and employment has been a high priority in the Trump Administration’s early efforts to shrink the size of the government, leading to an unprecedented surge in federal workers starting new job applications. The latest Indeed data also show that early attempts to cut federal contracts and spending, particularly for organizations that perform scientific research, are beginning to pass through into the labor market.

Over the past few years, demand for research jobs has cooled at a faster pace than demand for jobs overall — and the pace has only accelerated since the Trump administration took office. On January 20, postings for all jobs were 11% above their pre-pandemic level, while postings for research jobs were 11% below their pre-pandemic level. But while both continued to decline through the first few months of 2025, as of May 16, overall job postings were still 7% above pre-pandemic levels, while research job postings were 27% below pre-pandemic norms. In total, research job postings have fallen by 18% since January 20, compared to 4% for postings overall. 

A line chart titled “Research and consulting roles are declining quickly” shows the Indeed Job Posting Index, with one line for all US jobs and another for scientific research & development roles. The graph shows that overall postings are relatively steady, while research jobs have fallen off since the beginning of the year. 
A line chart titled “Research and consulting roles are declining quickly” shows the Indeed Job Posting Index, with one line for all US jobs and another for scientific research & development roles. The graph shows that overall postings are relatively steady, while research jobs have fallen off since the beginning of the year. 

The scientific research & development sector is a bit of a mixed bag. It encompasses various research-based job titles, including environmental specialist and laboratory assistant. But it also includes several jobs that focus more on research and development and are typically more common at consulting firms, including enterprise architect and life science consultant. So far, the biggest shifts in employer demand in the scientific sector have occurred in the latter (consulting) group, with roles for enterprise architects falling the most since January. Data collector jobs, most common in independent social research organizations, accounted for the next-largest drop. The pullback in these roles suggests that cuts to government spending are already impacting some employers and organizations outside the federal government that depend on federal contracts.  

A table titled “Scientific research & development jobs are being impacted by federal spending cuts” shows the job titles with the largest decrease in share so far this year. In general, titles specific to major consulting companies have experienced larger declines, but the drop-off within the category has been broad-based.  
A table titled “Scientific research & development jobs are being impacted by federal spending cuts” shows the job titles with the largest decrease in share so far this year. In general, titles specific to major consulting companies have experienced larger declines, but the drop-off within the category has been broad-based.  

Outside R&D, big slowdowns inside D.C.

Scientific research & development is a reasonably small category overall (accounting for less than 1% of all job postings on Indeed at the beginning of 2025), and the sharp decline in research jobs has yet to move overall, nationwide job posting trends. And the decline has not been centered in any single region (like the Washington, D.C., Maryland, and Virginia area, collectively referred to as the “DMV”), either. In fact, 87% of the pullback in scientific research & development roles this year has occurred outside of the DMV area, with notable drops in California, Pennsylvania, and Texas. 

Having these jobs spread all over the country is good news for the DMV, sparing the capital region from bearing the full force of the decline — at least for research jobs in particular. Unfortunately, job posting data shows that federal cuts may be impacting jobs in other D.C.-area sectors. As of May 16, total job postings in Washington, D.C. were 32% below their pre-pandemic level, rapidly approaching lows last reached during the depths of the COVID-induced recession. 

A line chart titled “Washington, D.C. postings are 32% below pre-pandemic levels” shows the Indeed Job Posting Index for the US, Maryland, Virginia, and Washington, D.C. So far this year, Washington, D.C. has seen the fastest decline, but signs of slowdown are also emerging in Maryland and Virginia. 
A line chart titled “Washington, D.C. postings are 32% below pre-pandemic levels” shows the Indeed Job Posting Index for the US, Maryland, Virginia, and Washington, D.C. So far this year, Washington, D.C. has seen the fastest decline, but signs of slowdown are also emerging in Maryland and Virginia. 

Postings in Washington, D.C., have fallen by 17% since January 20. Sectors with the largest declines in indexed job postings in D.C. from January to April included administrative assistance (-21%), human resources (20%), and accounting (-18%). Declines for administrative assistance roles in Washington, D.C. have been higher than their nationwide decline (-10.4%) from January to April. Several sectors, including nursing and education & instruction, have held up (growing by 11.4% and 6% this year, respectively). Still, it hasn’t been enough to offset the declines in the majority of occupations.

A dual bar chart titled “Administrative assistance has driven posting declines in D.C.” shows the five sectors with the largest decrease in postings this year on the left and the five sectors with the largest increases on the right. Administrative assistance has declined the most (-21.3%), while nursing jobs have experienced the largest gains (11.4%) this year.
A dual bar chart titled “Administrative assistance has driven posting declines in D.C.” shows the five sectors with the largest decrease in postings this year on the left and the five sectors with the largest increases on the right. Administrative assistance has declined the most (-21.3%), while nursing jobs have experienced the largest gains (11.4%) this year.

Many job categories are still holding up, despite potential disruptions

In addition to importing finished goods to sell in the US, many employers depend on importing the materials or inputs needed to create products domestically. Additionally, many sectors rely on immigration and foreign-born workers to create products or services. As such, adjustments to trade and immigration policy have the potential to disrupt business operations in sectors like construction and manufacturing, which often rely on both foreign-born workers and imported materials. As of May 16, the Indeed Job Posting Index shows that demand for workers in those occupations continues to hold up. 

A line chart titled “Construction and manufacturing postings are mostly steady” shows the Indeed Job Posting Index for US postings, construction, production & manufacturing, and hospitality & tourism. Despite potential policy disruptions, each of the categories is holding up for now.
A line chart titled “Construction and manufacturing postings are mostly steady” shows the Indeed Job Posting Index for US postings, construction, production & manufacturing, and hospitality & tourism. Despite potential policy disruptions, each of the categories is holding up for now.

Other sectors, including hospitality & tourism, benefit less from imported materials or labor, and more from foreign travel to the US. Early indicators are pointing to signs of declining travel to the US from abroad amid trade war tensions and policy changes at the border. Indeed data show that hospitality & tourism postings are holding fairly steady for now, albeit at a low overall level, but they will be worth keeping an eye on in the coming months. 

Conclusion

Scientific research and development jobs account for a small portion of the labor market, but their work has the potential to ripple into the rest of the economy. Pulling back on labor investments in scientific research and consulting roles that drive business innovation will likely carry social and financial costs later on down the road. On top of that, policy-driven disruptions to the supply of goods, materials, tourism, and labor may prove to be significant headwinds to economic growth that will play out in the coming months and years. However, while that data takes time to filter into official economic measures, the best indicators we have for now may be the fingerprints left in the real-time data.     

Methodology

Data on seasonally adjusted Indeed job postings are an index of the number of seasonally adjusted job postings on a given day, using a seven-day trailing average. February 1, 2020, is our pre-pandemic baseline, so the index is set to 100 on that day. We seasonally adjust each series based on historical patterns in 2017, 2018, and 2019. We adopted this methodology in January 2021. Data for several dates in 2021 and 2022 are missing and were interpolated. Non-seasonally adjusted data are calculated in a similar manner, except that the data are not adjusted to historical patterns.

The number of job postings on Indeed.com, whether related to paid or unpaid job solicitations, is not indicative of potential revenue or earnings of Indeed, which comprises a significant percentage of the HR Technology segment of its parent company, Recruit Holdings Co., Ltd. Job posting numbers are provided for information purposes only and should not be viewed as an indicator of the performance of Indeed or Recruit. Please refer to the Recruit Holdings investor relations website and regulatory filings in Japan for more detailed information on revenue generation by Recruit’s HR Technology segment.