Key takeaways:
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Hiring is slowing and becoming more strategic, with fewer companies planning to expand and a sharper focus on cost-cutting, requiring staffing agencies to emphasize value and ROI.
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Demand is shifting toward part-time and mid-level roles, while entry-level hiring declines — prompting agencies to diversify offerings and strengthen temporary and contract capabilities.
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Agencies that prioritize client relationships, broaden services, and position themselves as strategic partners will be better equipped to navigate the evolving hiring landscape and drive sustainable growth.
Moving into the second half of 2025, employers continue to shift toward selective, strategic, and budget-conscious hiring amid growing economic uncertainty. Recent data from The Harris Poll on behalf of Express Employment Professionals reveals hiring insights staffing leaders can use to adapt their strategies and better serve clients in an evolving market.
Confidence drops, fewer plans to boost hiring
While the majority of hiring managers maintain a positive hiring outlook (78%), it’s a measurable decline in confidence compared to late 2024 (84%), and negative perspectives have jumped from 30% to 37%.
For staffing agencies, this translates to clients who are more deliberate in their hiring decisions and potentially more selective about the roles they choose to fill. The days of rapid, high-volume placements may be giving way to a more strategic, quality-focused approach.
Companies planning to expand their workforce now represent 58% of survey respondents, down from 63% late last year. The primary drivers for increasing hiring remain operational necessities — managing increased workloads, filling newly created positions, and addressing turnover. However, the emergence of cost-cutting as a primary concern for companies reducing staff highlights the need for staffing agencies to demonstrate clear value propositions and ROI metrics.
In addition, government policy adaptations as a hiring factor suggests that regulatory compliance and policy navigation services could become valuable add-ons for staffing agencies serving clients in affected industries.
Companies maintaining steady workforce levels (a third of survey respondents) present a different opportunity set. These organizations may require specialized temporary staffing solutions, project-based talent, or replacement hiring services rather than growth-focused recruitment.
Part-time, flexible positions gaining ground
Permanent placement services remain the cornerstone of the staffing industry. However, though 81% of companies are aiming to fill full-time roles, that percentage is down from 86%.
Meanwhile, plans to hire for part-time positions jumped to 28%, suggesting a growing demand for flexible staffing solutions. This trend could favor agencies with strong temporary and contract staffing capabilities.
Perhaps most significantly, the sharp decline in entry-level hiring from 68% to 50% represents a fundamental market shift. Staffing agencies that have traditionally focused on entry-level placements may need to enhance their mid-level recruitment capabilities or risk losing market share.
Standing out in an evolving staffing landscape
These market insights point to four success strategies:
Prioritize relationships over volume. In a more cautious hiring environment, building deeper relationships with existing clients becomes more valuable than rapidly expanding client bases. Focus on understanding each client’s specific challenges and long-term strategic needs.
Diversify service portfolio. The data suggests successful agencies will need broader service offerings, including temporary staffing, project-based placements, and specialized mid-level recruitment capabilities.
Demonstrate value. With cost-consciousness driving many hiring decisions, staffing agencies must clearly articulate their value proposition through metrics, efficiency improvements, and quality of hire data.
Shift market position. Agencies should consider positioning themselves as strategic workforce partners rather than transactional service providers, offering insights and consulting alongside traditional staffing services.
As companies recalibrate their workforce strategies in an uncertain economy, staffing agencies that demonstrate agility, provide strategic value beyond basic recruitment, and view these trends as positioning opportunities rather than obstacles will be best positioned for sustainable growth.
