Key takeaways:
- Widespread workforce reductions expected: Nearly 60% of companies anticipate layoffs by 2026, with many already freezing hiring or cutting staff due to economic uncertainty.
- AI reshaping job demand: Around 30% of employers have already replaced roles with AI, and high-paying positions lacking AI-related skills are most at risk, creating strong demand for workers with AI-adjacent expertise.
- Growth in flexible staffing opportunities: As permanent roles shrink, companies are turning to contingent and flexible staffing solutions, opening opportunities for staffing firms to support digital transformation and workforce transitions.
Nearly 60% of companies anticipate workforce reductions in 2026, according to a new Resume.org survey.
But corporate hiring strategies have already begun contracting. Half of surveyed companies have either frozen hiring completely or reduced their recruitment activities, with economic uncertainty driving 63% of these decisions. Meanwhile, 40% of organizations have already implemented layoffs this year, with another third planning reductions before year-end.
While reduced permanent hiring might initially seem problematic, history shows that economic uncertainty often drives increased demand for flexible workforce solutions. Companies facing budget constraints and volatile market conditions frequently turn to contingent staffing to maintain operational flexibility.
AI displaces workers and AI skills are in high demand
AI adoption is rapidly accelerating — nearly 30% of companies have already replaced roles with AI technology, and 37% plan additional automation by late 2026. This technological shift is fundamentally reshaping which roles organizations need to fill.
High-salary positions and workers lacking AI-related skills face the highest risk of displacement. This creates a strategic opening for staffing agencies that can position themselves as bridges between traditional workforce needs and the emerging AI-integrated workplace.
Potential increase in flexible staffing needs
Organizations cutting permanent headcount often increase their reliance on flexible staffing solutions to maintain operational capabilities while managing costs. In addition, companies implementing AI systems will require workers who can collaborate effectively with automated processes, manage AI oversight functions, and handle the human elements that technology cannot replicate.
This leaves three critical areas for staffing agencies to focus on:
- Developing talent pools with AI-adjacent skills
- Building relationships with companies undergoing digital transformation
- Creating service packages that help clients navigate workforce transitions efficiently
Projected layoffs are not necessarily a threat to the industry, but evidence of a market in transition — one that increasingly values the flexibility and specialized expertise that staffing firms provide.
