State and local government employers faced fewer hiring challenges in the past year, a new MissionSquare Research Institute report finds

WASHINGTON--(BUSINESS WIRE)--MissionSquare Research Institute (the Institute) is releasing new findings from its latest workforce survey, an annual collaboration with the Public Sector HR Association (PSHRA) and the National Association of State Personnel Executives (NASPE). Now in its 16^th year, the new research report, “2025 State and Local Government Workforce Survey Results,” takes a comprehensive look at current state and local recruitment, retention, benefits, and related human resources practices as well as a wider view of how those practices have trended over time.

Among many findings, the research uncovered that recruitment became less challenging in 2024 and saw continued improvement in 2025. Across 19 key occupations, the share of survey respondents who considered them “hard to fill,” dropped by 10 percentage points or more since 2022.

“While it is encouraging to see that recruitment has become less challenging, many opportunities still exist for employers to help address their overall workforce shortages,” said Gerald Young, senior researcher at the Institute. “This is particularly important when looking to appeal to job candidates’ motivations, including updating position descriptions and job requirements and enhancing communications with applicants, such as through video campaigns, social media, and mobile apps.”

New trends arose this year regarding hiring practices and tactics to support recruitment, leading to the overall easing of recruitment difficulties. Specifically, the survey found:

• Broad, but not comprehensive, success in hiring a new generation of workers. Overall, 60% of governments reported being very or somewhat successful in recruiting new generations of employees.
• Hybrid and flexible schedules remain common. Approximately half of all respondents reported policies providing flexible scheduling. When considering all types of flexible work practices, 67% reported a positive impact on productivity compared to just 4% citing an adverse effect.
• There is a greater need for succession planning. With 46% expecting that the most significant wave of anticipated retirements is still to come, half (50%) of governments rated succession planning as very important. However, 61% reported not having a succession planning process in place.
• A shift in employer-focused priorities. Specific workforce issues have been deemed less significant in 2025, with fewer governments reporting competitive compensation as one of their critical priorities (70% in 2025 compared to 79% in 2024). This is potentially a reaction to salary increases instituted in preceding years. Those rating workforce diversity, equity, and inclusion as very important declined even further, down to 28% in 2025 compared to 41% in 2024.

Additional questions added to this year’s survey shed light on emerging trends and areas where respondents have seen successes or potential opportunities when it comes to their recruiting and hiring practices, including:

• Successful recruitment strategies show that 9% report using skills assessments (as an alternative to a degree requirement), and 12% of respondents front-load benefits for newly hired employees to have quicker access to paid leave.
• Within the application process, 47% omit questions on salary history, and 20% provide interview accommodations for neurodiverse job candidates.
• While 52% do not provide paid family leave, 39% offer 4 weeks or more.
• Only 5% provide paid leave for employees to attend college classes.

The survey was conducted among 382 NASPE and PSHRA members March 4-April 7, 2025. For more detailed research findings and additional research, visit the Institute’s website.

About MissionSquare Research Institute

MissionSquare Research Institute promotes excellence in state and local government and other public service organizations to attract and retain talented employees. The organization identifies leading practices and conducts research on retirement plans, health and wellness benefits, workforce demographics and skill set needs, labor force development, and topics facing the nonprofit industry and education sector. MissionSquare Research Institute brings together leaders and respected researchers. More information and access to research and publications are available here.

About MissionSquare Retirement

Since its founding in 1972, MissionSquare Retirement has been dedicated to simplifying the path to retirement security for public service employees. As a mission-based financial services company, we manage and administer over $72.0 billion in assets.* Our commitment to delivering results-oriented retirement plans, education, investments, and personalized advice sets us apart. Explore how we enable public service workers to build a more secure financial future. For more information, visit www.missionsq.org.

*As of Dec. 31, 2024. Includes 457(b) plans, 401(a) plans, 403(b) plans, Retirement Health Savings plans, Employer Investment Program plans, affiliated IRAs, and investment-only assets.