Economic Update: Low Unemployment and Increasing Costs of Employees

What happens when unemployment is low and you have critical positions that can't be filled?

The unemployment rate in the USA was 4.2% in July, 2025 (Bureau of Labor Statistics). While it is not the lowest it has ever been, it does cause consternation in the marketplace as it creates leverage for the recruit. This means companies need to offer more salary and other incentives to stand out amongst their competition. Job growth also slowed in July to provide only 73,000 new positions, with revisions from prior months bringing down new job creation numbers. 

All of this points to an increasingly competitive labor market, which equates to harder to fill roles, increased employment costs, and potentially not meeting business objectives. Plus, there are additional factors are adding to a difficult labor market:

1. According to Wall Street Journal, 1 in 5 companies plan to slow hiring in 2nd half of 2025

2. Baby Boomer retirements are outpacing workforce entry by younger generations

3. Reductions in immigration numbers limit overall workforce population

4. According to Washington Post, nearly 2 million Americans are on unemployment - the highest rate since the pandemic

With these four major issues facing the market, leaders need to make difficult decisions regarding how they acquire the talent needed to propel their companies forward. Do you gamble that your managers will be able to hire the best talent for the roles, or just do the convenient hires with the people who are in front of them? Do you increase your payroll budget to pay for the right talent? 

The great news is there is an alternative for you! Managed Virtual Assistants (MVA’s) are professionals who can instantly integrate with your company and take care of various functions. From finance, lead generation, customer service, administration, marketing, to business development, they are quick to get up and running without the delay of onboarding and without the expense of salaries and benefits. This allows you to pivot quickly so you can scale your company based on your needs. 

MVA’s save your company money in various ways: salary and benefits, office space, taxes, equipment and services, and many other areas. In fact, MVA’s can save your company up to 78% of the overall cost compared to when you hire an employee. Imagine the ability you have to bring in 4 or 5 MVA’s instead of hiring the one employee, and you are still saving thousands of dollars!

Case Study: Healthcare’s Administrative Backlog

A medical practice in Texas had everything going its way: strong returning base of patients, large influx of  new patient numbers, and increased revenue. However the problem was in their success. They could not grow their number of employees fast enough, and it began to anger a lot of patients as they could not get information they need, plus there was an increasing number of financial and insurance processing errors. Not to mention payroll expenses were ballooning with overtime costs. 

The solution was to hire MVA’s. They decided to hire three MVA’s to handle appointment confirmations, insurance pre-verifications, patient reminders, and other financial matters.

The results were clear:

1. 45% faster call response times

2. 30% fewer billing errors

3. 25% reduction in overtime costs for employees

The practice did not just save money, but they regained the trust and satisfaction of their patients, so they could continue to build their practice as the leading provider in their community.

Why This Matters Now

As hiring slows and economic uncertainty rises, MVAs help businesses:

• Fill critical roles without long-term headcount commitments.

• Maintain operational performance and customer service standards.

• Stay agile and competitive in a volatile market economy.

  
  

Learn More

If you would like to learn how MVA’s can save you time, money, and resources reach out for a FREE Consultation to see how we can help your business. 

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