PREDICTIONS FOR 2026
2025 PREDICTIONS RECAP
STAFFING
AI-Driven Sourcing and Matching Will Reshape the Business Model Expect firms to adopt AI-enabled sourcing, skills- based candidate mapping, and data-driven matching – and those that don’t will struggle.
Ongoing Economic Uncertainty Will Continue to Impact Staffing Business uncertainty about the future of the economy will inhibit some companies from engaging with staffing firms until the outlook solidifies. This is nothing new for the staffing industry – you’re used to riding the ups and downs of the economy. But uncertainty in the overall economy often leads to uncertainty in the staffing industry. Those that can diversify their offerings or invest in those sectors that are most in demand will best weather the storm. Margin Suppression Will Rankle the Industry Between higher fees being charged by Managed Service Providers and employees (and state laws) demanding or requiring higher pay and benefits, staffing firms may be faced with further margin suppression.
We predicted that immigration changes would continue to impact the staffing industry, and we nailed that one. The recent change to the H-1B visa system could cause massive disruption to staffing as we outlined here, especially those in the IT and healthcare staffing space. Immigration Chaos
We predicted that state-level attacks on the staffing industry would continue in 2025. While no new states followed the lead of recent laws enacted in New Jersey and Illinois with requirements that temporary workers be paid “equal pay and benefits,” we expect this and other attacks will continue to be an ongoing threat for the industry in other states for the foreseeable future. State Attacks
OUR PREDICTIONS WERE MOSTLY RIGHT
HOW DID WE DO?
MORE FROM 2025 Noncompetes Under Fire – Especially in Healthcare
Benjamin M. Ebbink Sacramento/Washington, D.C. Partner, Chair
Client Demands for Discriminatory Staffing Won’t Fly The EEOC filed a September lawsuit accusing a South Carolina-based agency of refusing to hire or refer women for laborer positions at a client’s plant. According to the agency, the case shows how staffing firms can be liable for workplace law violations even if they claim to just be “following orders” from clients.
The FTC announced in September that it will specifically target the use of noncompetes and other restrictive covenants in the healthcare and staffing space. The agency issued warning letters to several large healthcare employers and staffing firms urging them to review their noncompetes and other restrictive covenants to ensure they’re legally sound and don’t infringe on workers’ rights.
Rebecca Bovinet Ft. Lauderdale Associate
BACK TO HOME
Made with FlippingBook - Online magazine maker