Employee Retention Rate in the US 2025
The landscape of employee retention in the United States continues to evolve significantly in 2025, with organizations facing unprecedented challenges in maintaining their workforce stability. The U.S. Bureau of Labor Statistics reported that total separations changed little at 5.1 million in March 2025, indicating a stabilizing but still dynamic employment environment. Understanding these retention patterns has become crucial for businesses aiming to build sustainable competitive advantages through human capital management.
Current data reveals that employee turnover rates remain a critical concern across various sectors, with the total separations rate remaining unchanged for the fifth month in a row at 3.3 percent as of May 2025. This consistency suggests that while the great resignation period may be stabilizing, organizations must still prioritize retention strategies to maintain operational efficiency and reduce the substantial costs associated with employee replacement and training.
Employee Retention Stats & Facts in the US 2025
| Retention Metric | 2025 Statistics | Source |
|---|---|---|
| Average Employee Retention Rate | 90% for good companies | Industry Analysis |
| Monthly Employee Quits | 3.3 million workers | U.S. Bureau of Labor Statistics |
| Total Monthly Separations | 5.2 million workers | U.S. Bureau of Labor Statistics |
| Monthly Hires | 5.5 million workers | U.S. Bureau of Labor Statistics |
| New Employee Departure Rate | 33% quit within 6 months | Industry Research |
| National Separations Rate | 3.3% (unchanged for 5 months) | U.S. Bureau of Labor Statistics |
| Job Openings Rate | 4.4% in April 2025 | U.S. Bureau of Labor Statistics |
| Optimal Turnover Rate | 10% or less (excluding dismissals/retirements) | Industry Standards |
The employee retention landscape in 2025 demonstrates both stability and ongoing challenges that organizations must navigate carefully. Generally, good companies retain an average of 90% of their employees, translating to an employee turnover rate of 10% or less when not factoring in dismissals and retirements. This benchmark represents the gold standard that successful organizations strive to achieve through comprehensive retention strategies.
The most striking aspect of current retention data is the consistency in separation rates, with the total separations rate remaining unchanged for the fifth month in a row at 3.3 percent. This stability indicates that after years of volatility during the pandemic and great resignation period, the employment market is finding its equilibrium. However, the 3.3 million monthly quits figure represents a substantial portion of workforce movement that continues to impact organizational planning and resource allocation across all industries.
Employee Turnover Rate by Industry in the US 2025
| Industry Sector | Turnover Characteristics | Government Data Insights |
|---|---|---|
| Federal Government | Significant job losses | 59,000 fewer jobs since start of 2025 |
| State and Local Government | Mixed performance | Job gains in state government sector |
| Healthcare | Continued growth | Job gains occurred in healthcare sector |
| Accommodation and Food Services | High volatility | Job openings decreased by 135,000 |
| Finance and Insurance | Declining separations | Total separations decreased by 42,000 |
| Transportation and Utilities | Reduced quits | Quits decreased by 49,000 |
| Retail Trade | Improved stability | Layoffs decreased by 66,000 |
| Arts and Entertainment | Increased opportunities | Number of openings increased |
The industry-specific retention patterns in 2025 reveal significant variations that reflect both sector-specific challenges and broader economic trends. Total separations decreased in federal government while increasing in state and local government, excluding education, highlighting the complex dynamics within public sector employment. The federal government sector experienced particularly notable changes, with 59,000 fewer federal jobs in mid-May compared to the start of the Trump administration, including a net loss of 22,000 jobs in May.
The private sector demonstrates more varied retention outcomes, with total separations decreasing in finance and insurance by 42,000, indicating improved stability in financial services. Conversely, the hospitality sector continues to face challenges, as evidenced by job openings decreasing in accommodation and food services by 135,000. These industry-specific trends underscore the importance of tailored retention strategies that address unique sector challenges and opportunities.
Job Retention Statistics in the US 2025
| Retention Indicator | Current Metrics | Trend Analysis |
|---|---|---|
| Monthly Separations Rate | 3.3% (stable) | Unchanged for 5 consecutive months |
| Voluntary Quit Rate | 2.1% | Little changed from previous months |
| Layoffs and Discharges Rate | 1.0% | Slight decrease trend |
| Job Openings | 7.4 million positions | Little changed overall |
| Hire Rate | 3.4% | Consistent with separations |
| New Employee Retention | 67% stay beyond 6 months | Critical retention milestone |
| Annual Job Openings Decline | 901,000 fewer openings | Year-over-year comparison |
| Other Separations | 247,000 monthly | Includes retirements and transfers |
The job retention statistics for 2025 paint a picture of a labor market that has achieved relative stability after years of unprecedented volatility. The quits rate at 2.1 percent was little changed, while the number of layoffs and discharges edged down to 1.6 million with the rate remaining at 1.0 percent. This data suggests that while employees are still exercising choice in their career moves, the frenzied job-hopping of previous years has moderated to more sustainable levels.
The 67% retention rate for new employees beyond their first six months represents a critical benchmark for organizational success. One-third of new employees quit after about six months, according to statistics, which is a significant number requiring urgent attention from employers. This statistic emphasizes the crucial importance of effective onboarding programs, early engagement strategies, and comprehensive new employee support systems. Organizations that successfully navigate this critical six-month period demonstrate significantly higher overall retention rates and reduced recruitment costs.
State-Wise Employee Retention Statistics in the US 2025
| State | Job Openings Change | Separations Rate Change | Hiring Rate Change | Key Insights |
|---|---|---|---|---|
| Massachusetts | -59,000 positions | -0.8 percentage points | Stable | Significant job market contraction |
| New York | -46,000 positions | Stable | -0.5 point openings rate | Large-scale position reductions |
| California | +84,000 separations | +0.3 point quits rate | Stable | High workforce mobility |
| Florida | Stable | Stable | -1.5 points hires rate | Declining hiring activity |
| Michigan | +40,000 hires | Stable | +0.8 point hires rate | Strong hiring recovery |
| Colorado | +32,000 hires | Stable | +1.0 point hires rate | Robust job market growth |
| Alaska | Stable | -1.5 percentage points | Stable | Improved retention stability |
| Tennessee | Stable | -0.8 percentage points | Stable | Better employee retention |
The state-wise employee retention patterns in March 2025 reveal significant regional variations that reflect local economic conditions and industry concentrations. Job openings rates decreased in 3 states and were little changed in 47 states and the District of Columbia, with Massachusetts experiencing the largest decrease of 1.5 percentage points, followed by New Mexico with a 1.2 point decrease and New York with a 0.5 point decrease. These northeastern states faced particular challenges in maintaining job availability during this period.
The regional disparities become more pronounced when examining hiring patterns, where hires rates increased in 3 states, decreased in 2 states, and were little changed in 45 states. Colorado led the nation with a remarkable 1.0 percentage point increase in hiring rates, while Indiana and Michigan each saw 0.8 point increases, indicating strong regional economic recovery. Conversely, Florida experienced a significant 1.5 percentage point decrease in hiring rates, alongside New Mexico’s 0.9 point decline, suggesting varying regional employment dynamics across the United States.
State Employee Turnover Patterns in the US 2025
| Top Performing States | Retention Metrics | Challenging States | Turnover Indicators |
|---|---|---|---|
| Alaska | -1.5% separations rate | Iowa | +1.1% separations rate |
| Louisiana | -0.8% separations rate | Connecticut | +0.8% separations rate |
| Massachusetts | -0.8% separations rate | Kansas | +0.7% separations rate |
| Tennessee | -0.8% separations rate | Illinois | +0.5% quits rate |
| Pennsylvania | -30,000 separations | California | +57,000 quits |
| Virginia | -28,000 separations | Iowa | +12,000 quits |
| Michigan | -21,000 layoffs | Florida | -149,000 hires |
| New York | -29,000 layoffs | New Mexico | -8,000 hires |
The state-level retention analysis for 2025 demonstrates remarkable regional diversity in employment stability patterns. Total separations rates decreased in 4 states, increased in 3 states, and were little changed in 43 states, indicating that most states maintained stable workforce retention levels. Alaska emerged as the standout performer with a substantial 1.5 percentage point decrease in total separations rates, while Louisiana, Massachusetts, and Tennessee each achieved 0.8 percentage point improvements in retention.
The voluntary turnover patterns by state reveal interesting workforce mobility trends, with quits rates increasing in 3 states and remaining stable in 47 states. Iowa led the nation with a 0.8 percentage point increase in quits rates, followed by Illinois at 0.5 points and California at 0.3 points. These increases suggest regional economic confidence where workers feel secure enough to voluntarily change positions for better opportunities, while the stability in most states indicates a balanced labor market where retention strategies are effectively maintaining workforce stability.
Key Findings: Employee Retention Trends in the US 2025
The employee retention landscape in 2025 demonstrates that successful organizations must balance multiple factors to maintain workforce stability while adapting to significant regional variations. The consistent 3.3% national separations rate over five months indicates market maturation, while state-level data reveals that 47 out of 50 states maintained stable turnover rates, suggesting effective retention strategies are becoming standardized across regions. The 90% retention rate achieved by top-performing companies sets a clear benchmark for organizational excellence, with states like Alaska and Tennessee demonstrating that superior retention outcomes are achievable through focused policy and practice implementation.
Regional disparities in hiring and separation patterns highlight the importance of location-specific retention approaches, with states like Colorado and Michigan showing robust hiring growth of 32,000 and 40,000 respectively, while northeastern states like Massachusetts and New York faced significant job market contractions. The critical six-month retention milestone for new employees remains universally important, but state-level variations in economic conditions, industry concentrations, and policy environments require tailored retention strategies that address unique regional challenges and opportunities to ensure long-term workforce stability and reduce the substantial costs associated with early employee turnover.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
