In this week’s StaffingHub Brief, we’re covering:
- Staffing hours are up 10% year-over-year, and the industry could hit its first revenue growth in three years, but some segments are growing faster.
- AI has made resumes difficult to distinguish from job descriptions, and 73% of HR professionals say there’s fabricated or misleading candidate information in their pipelines.
- Korn Ferry finalized its acquisition of AMS, creating a 17,000-person talent firm across 130+ offices, while ALKU acquired a technology consulting firm that specializes in AI.
Things are looking up in staffing, especially for some segments
The US staffing industry is predicted to grow 2.4% in 2026, reaching $183.1 billion. That would be the industry’s first revenue growth in three years, after SIA revised its original estimate of just 0.8%. Industrial leads at 7% projected growth ($40.9B), and locum tenens ($10.2B), engineering ($10.6B), and education ($4.4B) are reaching new heights. Healthcare, after falling 26% in 2024 and 8% in 2025, is expected to recover 1%. (Learn more)
The SIA | Bullhorn Staffing Indicator through August 22 shows staffing hours are up 10% year-over-year. Industrial is leading, up 15% YoY, driven by manufacturing demand and data center investment. IT is up 5%, and professional is up 7%. Meanwhile, office and clerical is down 4%. (Learn more)
According to Bullhorn, temp job orders were up 5% compared to last year, and fill rates were up 8%. But submissions per order jumped 3.5% month-over-month, suggesting that filling roles is taking more recruiter effort. Bullhorn considers it more of a “cooling of momentum than a reversal.” (Learn more)
AI is making it harder to evaluate candidates
73% of HR professionals have spotted fabricated or misleading candidate information, and 36% say AI-generated content has reduced their confidence in hiring decisions, according to Equifax. Seven in 10 U.S. professionals used AI in their job search over the last two years, with 48% using it to tailor applications to specific postings. As resumes start to parrot what’s in the job description, quality candidates no longer stand out from the rest.
Background checks aren’t enough. Applicants can still use identity substitution during interviews. According to an Equifax representative, “a worker who is running two or more full-time W-2 jobs, will fabricate a resume, create an identity, onboard using that identity, get paid for it for a period of time, and often for a nefarious purpose that’s beyond simply capturing an extra paycheck.” Some companies are going back to in-person interviews to prevent this, but the solution also requires a stronger verification process, including using technology to validate IP addresses, credentials, and other key information.
And candidates are asking for a more human hiring process. Staffmark Group’s 2026 Heart of Work Index surveyed 3,746 workers across eight industries and found 70% prefer human-led interaction at the post-apply, pre-interview stage. Sixty percent want a human-centric process overall. “The moment the stakes get real — an interview, an offer, a first day — people want a person in their corner, not a chatbot,” said Stacey Lane, CEO of Staffmark Group. The same study found 57% are likely to seek a new job within six months.
Two deals this week reflect a move toward scale and specialization
Korn Ferry closed its acquisition of AMS on September 1, paying approximately £473 million and $326 million in cash plus stock to OMERS Private Equity. The combined firm runs nearly 17,000 people across 130+ global offices. Korn Ferry describes the portfolio as one of the most comprehensive in the world, spanning board and CEO services, talent acquisition, leadership development, and assessments.
ALKU acquired rockITdata, a technology consulting firm specializing in AI, data engineering, and federal health contracts. The deal gives ALKU full project ownership in healthcare IT and a path into federal AI contracts. “Combining their hands-on technical expertise in AI, data, and federal health with ALKU’s reach gives us the ability to offer a more complete solution,” said CEO Andrew Bull. Financial terms were not disclosed.
Meanwhile, in a StaffingHub roundtable this week, leaders from NATHO, Seek Careers, and Employment Solutions, said, “There’s no more to cut.” Profitable 2027 growth requires gross profit expansion, faster recruiter ramp-up, owned sourcing channels, and a plan to take market share as consolidation accelerates.
