Jonathon Swartout

Are Staffing Agencies Dying—or Evolving? As we look ahead to 2025–2027, it’s clear: staffing isn’t going away. But it is changing and fast. Here’s where the industry is headed: 🔹 1. Demand Continues—But Clients Are More Selective Industries like manufacturing, logistics, healthcare, and tech will still rely on staffing to manage: ·      Labor shortages ·      Project-based work ·      High turnover ·      Compliance complexity But clients want more than just “butts in seats.” They’re looking for value-added partners who offer strategic workforce planning, DEI alignment, and compliance expertise. 🤖 2. Tech Integration Is No Longer Optional Agencies that adopt AI, automation, and digital platforms are pulling ahead. Those clinging to manual processes? Risk being acquired—or left behind. Expect: ·      More direct sourcing and internal talent pools ·      VMS/MSP growth ·      AI-driven matching and screening 🏁 3. Niche Wins the Race Generalists are struggling to differentiate. But specialized staffing firms—focused on trades, healthcare, logistics, or IT—are thriving. Why? Because clients want true experts, not order-takers. ⚠️ 4. Compliance Is a Dealbreaker The W-2 vs. 1099 debate, tightening worker classification laws, and pay transparency rules are real. Agencies that don’t keep up? ·      Risk legal trouble ·      Lose clients ·      Damage their reputation The ones who understand and guide through compliance? They're becoming indispensable. 💼 5. Strategic Partnerships Are the Future Staffing agencies are evolving into consultative partners who help clients: ·      Build smarter talent strategies ·      Navigate market shifts ·      Achieve DEI and ESG goals 📉 Will Some Agencies Slow Down or Sell Off? Yes—especially those that: ·      Resist tech adoption ·      Cut corners on compliance ·      Prioritize volume over quality Consolidation will continue, and tech-first platforms will reshape the landscape. 👉 The bottom line: Staffing agencies aren’t dying—they’re evolving. The next two years will reward those who are agile, strategic, and built on trust. Are You Ready for the Change in Staffing? Or are you still partnering with agencies that just throw bodies at open roles, hoping someone sticks? True partnership isn’t a reward. It’s earned through trust, results, and accountability. In today’s labor market, you need more than a resume factory. You need a strategic staffing partner who understands your business, champions compliance, and is invested in long-term success, not just quick placements. Do you trust your current agency to be that partner? Visit our YES Pod Cast - Staffing changes are happening: https://lnkd.in/d3A2Y_iR #staffing #recruitment #talentstrategy #workforceplanning #compliance #hrtrends #staffingindustry #businessgrowth #YourEmploymentSolutions

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I attended a Staffing Industry Analysts webinar last week. The Webinar covered trends in various Staffing markets, most notably Technology. Some of the key takeaways are below. The recovery is real. 🟡 Tech Staffing was -10% in 2023. -6% in 2024. Forecast to return to growth in 2026. ⚫ 40% of Tech firms reported revenue growth in December. In April, that number was flat. 🟡 New orders are following the same direction. Not all of Tech is recovering equally. The roles and disciplines seeing the strongest demand: 🟡 Cyber — ransomware/phishing incidents are accelerating client spend here. ⚫ Cloud — clients are building the infrastructure AI actually needs. 🟡 Data — the foundation that underpins everything AI related. ⚫ Product — strong bill rate and volume growth. There was a consensus that software developers and web developers were under the most pressure. AI is compressing demand at the commoditized end of that market. The smarter firms are moving into Solutions. 🟡 Margin in pure staffing is tight. ⚫ IT consulting and solutions businesses are running significantly higher gross margins. 🟡 Clients want partners, not just suppliers. ⚫ IT Solutions now accounts for 27% of combined IT revenue — up from 24% just a year ago. Finally, the impact of AI is less dramatic than the headlines suggest. Three public company CEOs said broadly the same thing last week. 💬 Client infrastructure isn't ready. 💬 Spend is actually going up in cloud, security and modernization. 💬 The disruption is real but narrow. The compression is happening at the commoditized end. The specialist, senior end of the market remains intact. Clarity R2R | Staffing Industry Analysts | James Ward | Marcus Davies

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𝐂𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐜𝐲 𝐢𝐬𝐧’𝐭 𝐟𝐥𝐚𝐬𝐡𝐲. 𝐁𝐮𝐭 𝐢𝐭’𝐬 𝐰𝐡𝐚𝐭 𝐛𝐮𝐢𝐥𝐝𝐬 𝐭𝐫𝐮𝐬𝐭 𝐢𝐧 𝐬𝐭𝐚𝐟𝐟𝐢𝐧𝐠. In the US staffing world, results don’t come from one great deal or one lucky placement. They come from showing up the same way—every single day. • Following up when others forget • Being transparent when the market is tough • Delivering the same standard to clients and candidates alike • Leading teams with steady expectations, not shifting moods Anyone can be motivated when things are going well. Leadership is staying consistent when the market is uncertain, pipelines are slow, and pressure is high. 𝐈𝐧 𝐬𝐭𝐚𝐟𝐟𝐢𝐧𝐠, 𝐜𝐥𝐢𝐞𝐧𝐭𝐬 𝐭𝐫𝐮𝐬𝐭 𝐜𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐜𝐲. 𝐂𝐚𝐧𝐝𝐢𝐝𝐚𝐭𝐞𝐬 𝐫𝐞𝐬𝐩𝐞𝐜𝐭 𝐜𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐜𝐲. 𝐓𝐞𝐚𝐦𝐬 𝐠𝐫𝐨𝐰 𝐛𝐞𝐜𝐚𝐮𝐬𝐞 𝐨𝐟 𝐜𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐜𝐲. It’s not about doing something extraordinary once. It’s about doing the right thing—repeatedly. That’s how credibility is built. That’s how leaders are remembered. #Leadership #Consistency #StaffingLeadership #USStaffing #RecruitmentLeadership #TalentSolutions #PeopleFirst #Hiring #StaffingIndustry #BusinessLeadership #Trust #LongTermSuccess

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Kforce’s managed service model recently transformed compliance engineering for a global tech leader. Through automation, workflow optimization and a hybrid onshore/offshore model, we helped the client achieve 24/7 coverage and consistent audit readiness. Discover how this approach produced $700,000 in annual savings and 100% compliance: https://kfrc.co/43Papp2 

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The State of the Industry – March 13, 2026 ​The "Staffing Surge" is here. Are you riding the wave or watching from the shore? ​The data for the week ending March 13, 2026, is officially in, and it tells a story of Staffing Resilience. While the headlines focus on a "cooling" labor market, the reality for those of us in the trenches is different: Staffing hours have just hit a 2026 high. ​The Weekly Breakdown: 🔹​Momentum: The ASA Staffing Index is up 3.38% over last year. We aren't just recovering; we are accelerating. 🔹​The "Wait-and-See" Dividend: With 6.9M job openings but a cautious C-Suite, companies are turning to The Standard of contingent labor to bridge the gap. 🔹​The AI Pivot: Skills in "AI Orchestration" are now more in demand than traditional software development. The talent gap isn't closing; it's changing shape. ​The "Standard" Take: If you are still waiting for a "perfectly stable" economy to start your expansion, you’re missing the Q2 window. The most successful partners I’m seeing right now aren't hiring for headcount, they are hiring for targeted expertise to drive specific initiatives. ​The "Staffing Surge" isn't an accident. It’s the result of an industry that has architected a way to provide Certainty in an uncertain world. ​Is your Q2 strategy built on current data, or last year's assumptions? ​#StaffingIndustry #RecruitingTrends #WorkforceSolutions #TheStandard #EconomicOutlook2026 #LaborMarket #SIA #ASA

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January IT Employment Holds Steady Employment in IT remained flat In January 2026, adding 1,999 net jobs month-over-month, according to TechServe Alliance, the national trade association for the IT & Engineering Staffing and Solutions Industry. Since January 2025, IT employment grew 0.67%, or 34,836 jobs.    “January’s employment data reinforces what our members are seeing in the market right now—a labor environment that remains selective and uneven, but is beginning to show early signs of stabilization,” said Mark Roberts, CEO of TechServe Alliance.    “We are seeing comparatively better IT hiring momentum in sectors such as healthcare, life sciences, utilities, and infrastructure-related engineering, where digital modernization, data, and security needs remain active. Overall, clients are moving more deliberately, approving targeted projects and high-priority roles, and placing greater emphasis on outcomes, productivity, and near-term business impact rather than broad-based hiring,” Roberts added.  A NOTE FROM PHIL There are so many challenges to finding good IT people today. Candidates can send their resume to hundreds of businesses with one click. Fraudulent resumes and workers are more common than ever before. If you need any help hiring IT Contractors or Full-Time employees, give us a shout.

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