US Professional and Technical Services Sector NAICS 54

Nov 4, 2025 - Remote Work a Key Feature of Professional Employee Retainment

• A recent McKinsey survey of more than 9,500 US adults found that remote flexibility remains a decisive factor in retaining skilled professionals. About 43% of prime-age employees (25-54) already work remotely, while nearly 60% want that option, creating a 17-point expectation gap that fuels resignations. Seventeen percent of recent quitters left after employers tightened in-office mandates, and three-quarters of college degree holders reject inflexible roles. Among those with bachelor’s degrees, 60% currently work remotely and 75% prefer it, while high-income households (making $100,000+) show even stronger preferences (up to 70% favoring remote work). The survey also found women prefer remote work 8 to 3 points more than men, meaning strict attendance policies can undermine diversity and retention. McKinsey data further link flexibility to performance: 35% of hybrid companies reported double-digit revenue growth versus 28% of office-bound firms. The results suggest that autonomy, not proximity, now defines workplace competitiveness.
• AI is fundamentally reshaping how consulting firms approach talent acquisition, moving away from traditional models that relied heavily on large cohorts of entry-level associates. Historically, firms hired dozens, sometimes hundreds, of junior employees to perform routine analytical and research tasks, expecting that only a small percentage would advance to managerial or partner roles. According to Harvard Business Review (HBR), AI tools are now automating many of these routine functions, significantly reducing the need for large entry-level teams. As a result, consulting firms are focusing on hiring candidates with strategic thinking, leadership potential, and the ability to manage client engagements. This shift also requires firms to redesign workflows, integrate AI technology effectively, and reconsider traditional pricing and staffing models. According to experts cited by HBR, firms that adapt quickly to these changes will build stronger leadership pipelines, optimize operational efficiency, and maintain a competitive edge in an AI-driven consulting landscape.

• Economists surveyed by The Wall Street Journal expect the US labor market to keep cooling as economic growth slows. They forecast employers will add roughly 49,000 jobs per month over the four quarters, down from a previous estimate of 74,000, reflecting weaker demand for new hires after years of strong expansion. The unemployment rate is projected to edge up modestly as businesses hold off on hiring rather than resorting to large-scale layoffs. At the same time, labor productivity has improved, with output per hour rising about 3.5%, allowing companies to sustain growth with smaller workforces. Many economists see this productivity rebound (partly linked to technological and AI-driven efficiencies) as a key factor cushioning the economy against a sharper slowdown. The survey suggests that future growth will rely more on efficiency gains than job creation, signaling a gradual rebalancing in the post-pandemic labor market.
• Healthcare industry hiring is propping up the weakening US job market and accounting for about 86% of all monthly job additions, according to the US Labor Department. Of the economy’s 74,000 average new jobs a month in 2005 (down from last year’s 130,000 per month gain), about 64,000 of them are in the healthcare and social assistance sectors, essentially propping up virtually all US job gains. The US economy has 23.5 million health services jobs, compared to 12.7 million in manufacturing and 16.6 million in retail. Healthcare job growth is historically recession-proof given the cost is not typically an optional expense, especially among an aging US population. The more than $900 billion in Medicare cuts in Trump’s 2025 reconciliation bill is of major concern for the industry going forward and could lead to job losses.