In a transformative shift for the American workforce, artificial intelligence—often viewed with skepticism—has played a surprising role in easing the nation’s labor shortage in 2025. For the first time since 2017, the U.S. is seeing near balance between available jobs and workers.

According to the U.S. Chamber of Commerce, the acute worker shortage that plagued American businesses for years has mostly subsided. As of May 2025, there are 7.2 million available workers for 7.4 million open jobs—a much narrower gap than during the “Great Resignation” era of 2021–2022, when vacancies often outnumbered workers by millions.

AI, Workforce Return, and a Cooling Job Market

Several factors are driving this new equilibrium:

• AI automation has taken over many routine tasks, enabling businesses to operate efficiently with fewer staff.
• A growing number of Americans have returned to the workforce post-pandemic.
• The job market has cooled, reducing pressure on employers and wage inflation.

But the picture isn’t uniformly positive. Some states still struggle with talent shortages, and workforce strength remains a critical factor for companies deciding where to invest or expand.

Top 10 States for Workers in 2025

While a full ranking is expected to be released soon, preliminary data and labor market analysis suggest these 10 states are currently the most worker-friendly, offering strong job opportunities, competitive wages, and favorable living conditions:

1. Massachusetts
2. Colorado
3. Washington
4. Minnesota
5. California
6. Utah
7. Vermont
8. Connecticut
9. New Hampshire
10. Oregon

These states lead the way in:

• Workforce availability
• Worker protections and benefits
• Access to healthcare and child care
• Economic mobility
• Job growth in high-demand sectors (especially tech, healthcare, and clean energy)

What It Means for Employers and Workers

For businesses, choosing the right location still hinges on access to skilled labor. For workers, however, this shift offers new opportunities to find jobs in states where policies and economic conditions align with their needs.

As automation continues to shape the workplace and the labor market stabilizes, 2025 could mark a turning point for American workers—especially in these standout states.