Job seekers are navigating a minefield of ghosting, misleading job postings, and rising AI-driven pressure, not to mention a highly competitive market, according to Greenhouse’s 2025 Workforce and Hiring Report. The hiring experience is broken — and staffing agencies have a critical opportunity to step in, rebuild trust, and lead with solutions. But doing so requires bold action and a deep understanding of what candidates are truly facing.
1. It’s a brutally competitive market
Nearly 70% of job seekers in Greenhouse’s survey of 6,000 workers in the US, UK, and Ireland describe the job market as “extremely” or “very” competitive. Only 7% believe the market favors candidates.
What this means for staffing agencies:
Now more than ever, job seekers want guidance. They’re overwhelmed and unsure how to stand out. Agencies that provide hands-on coaching, resume refinement, and strategic targeting can become invaluable allies.
Consider:
- Offering workshops or 1:1 sessions on standing out in a competitive applicant pool.
- Positioning recruiters as “career coaches,” not just job matchers.
2. Friction is killing applications
In the US, 46% of candidates abandon applications when forced to re-enter resume data. Complex portals, multi-page forms, and broken autofill features are common dealbreakers. The job search process is already taxing — they don’t want to swim upstream if they don’t have to.
What this means for staffing agencies:
Your application process can be a differentiator or a deterrent. If your intake tech creates hurdles, you’re losing top talent before you ever meet them.
Consider:
- Streamlining candidate applications — autofill, mobile-optimized, and user-friendly.
- Auditing client-side application processes and advocating for candidate-friendly changes.
3. Communication gaps are eroding trust
More than six in 10 US candidates (63%) say they’ve been ghosted after interviews. This jumps to 78% among Gen Z. And the ghosting goes both ways — 50% of candidates in the US have ghosted employers, largely due to poor communication or delays.
What this means for staffing agencies:
Timely, transparent communication is non-negotiable. Agencies must bridge the gap between candidates and clients, ensuring neither side feels left in the dark.
Consider:
- Setting expectations with clients on response times and follow-ups.
- Using automation thoughtfully to keep candidates updated, especially if a decision is delayed.
4. AI is reshaping candidate behavior
Nearly a quarter of US candidates (22%) are using AI agents to apply for jobs. Many also use it to prep for interviews, write cover letters, or even generate fake portfolios.
What it means for staffing agencies:
The line between ethical AI use and “gaming the system” is blurring. Recruiters must adapt to AI-savvy candidates while upholding quality standards.
Consider:
- Educating candidates on appropriate AI use and helping them avoid ethical missteps.
- Using AI tools internally to screen submissions for authenticity and skill relevance.
5. Misaligned compensation and “bait-and-switch” tactics are common
The majority of US candidates (72%) report bait-and-switch experiences — misleading salary ranges, changed job duties, or downgraded roles. Meanwhile, Boomers are frequently lowballed, while Gen Z sees better offers.
What this means for staffing agencies:
Candidate trust is fragile. Agencies can restore it by advocating for transparency in job postings and compensation.
Consider:
- Insisting on accurate, detailed job descriptions from clients — no vague titles or unrealistic promises.
- Helping candidates understand market-based salary expectations to reduce mismatches.
6. Discrimination and unethical interview practices persist
More than half of US candidates (53%) report facing discriminatory questions — particularly around age, appearance, and health status. These experiences erode employer brands.
What this means for staffing agencies:
Agencies are gatekeepers of ethical hiring. They must ensure inclusive practices on both sides of the hiring table.
Consider:
- Training recruiters to flag bias in interview processes.
- Educating clients on compliance and fair hiring practices.
7. Referrals still reign supreme
Referrals continue to be one of the most effective ways for candidates to land jobs — leading to faster responses, higher interview-to-application success rates, and even stronger initial salary offers. Yet, many job seekers lack access to robust professional networks or inside connections that make referrals possible.
What this means for staffing agencies:
Staffing firms are perfectly positioned to democratize the benefits of referrals by building and managing structured referral ecosystems.
Consider:
- Creating formal, incentivized referral programs to expand reach and deepen trust within your candidate community.
- Building “referral-style” pipelines by nurturing active talent communities, alumni networks, and peer-to-peer referral loops.
8. No flexibility is a dealbreaker
A staggering 41% of US women prioritize remote work options when considering employment. Overall, only 12% of all US job candidates prefer fully in-person work, while 24% have a strong preference for remote work and 23% gravitate toward hybrid options.
What this means for staffing agencies:
Hybrid and remote options are no longer perks — they’re expectations. It may be a struggle to attract top candidates to fully in-office positions.
Consider:
- Partnering with clients offering flexible work to attract stronger candidate pools.
- Advising clients to clearly state flexibility in job descriptions, or risk application drop-off.
Today’s job seekers are tech-enabled, skeptical, and hungry for better experiences. Greenhouse’s 2025 report makes one thing clear: staffing agencies that focus on candidate advocacy, communication, and transparency will win.
The opportunity? To become the partner that job seekers and employers alike trust — not just to fill jobs, but to shape a smarter, fairer, and more efficient hiring process.
