(and what you should expect from your staffing agency)
As we head into 2026, the workforce landscape may look more stable than in recent years — but for HR and business leaders, “stable” doesn’t mean simple. Talent availability remains inconsistent across roles and regions, compliance obligations are still evolving, and business expectations keep rising even as many teams remain lean.
Here’s what late-2025 data signals for the year ahead—and how the right staffing agency should support your goals.
Navigating an Uneven Labor Supply
The U.S. unemployment rate was 4.3% in August 2025, still low by historical standards. Job openings held steady at 7.2 million, showing little change from the prior month.
Behind those steady numbers, the story looks different by region and role. Many employers are still struggling to find qualified talent, especially for skilled or shift-based work. That pressure isn’t likely to ease in 2026, as manufacturing and industrial trades continue to face persistent shortages of certified, experienced workers.
At the same time, workforce growth is expected to slow. The Federal Reserve Bank of Dallas notes that immigration flows, which boosted labor supply in recent years, have leveled off—adding more pressure to an already selective hiring landscape.
How your staffing agency should guide you
Your staffing agency should help you see beyond the national headlines with local, data-driven workforce insights. They should share what’s happening in your specific markets, recommend pay and sourcing strategies that fit current conditions, and offer flexible solutions—like contract-to-hire or surge staffing—to keep your operations running smoothly, even when talent is hard to find.
Managing Increasing Compliance Complexity
HR compliance is being reshaped by three converging pressures: new and evolving regulations, rising wage expectations, and shared accountability between employers and their staffing agencies.
For example, multiple states now require greater salary and benefits disclosure in job postings. In Illinois, the Pay Transparency amendment to the Equal Pay Act (HB 3129) — effective January 1, 2025 — requires employers with 15 or more employees to include a position’s “pay scale and benefits” in all job postings. The law also extends to third parties posting on an employer’s behalf, so staffing agencies must meet the same posting requirements when representing a client.
At the same time, national data show total compensation for civilian workers rose about 3.6% over the 12 months through June 2025, according to the BLS Employment Cost Index—highlighting that cost pressures remain real.
Together, these forces are redefining how companies approach hiring, pay, and workforce planning—turning compliance from a checklist item into a key part of staffing strategy. Heading into 2026, compliance may grow more complex as new pay-transparency and wage-equity laws take hold across additional states.
Handled well, it’s not just about avoiding penalties; it’s a competitive edge that shapes how employers attract and retain talent.
How your staffing agency should protect you
Compliance can shift quietly, and it’s easy for details to slip through. Your staffing agency should make sure every job they post on your behalf meets current state and federal requirements—from pay transparency to EEO and overtime rules. If you manage postings directly, they should keep you informed and ready to adjust before issues arise. A strong agency doesn’t just protect you from risk; they help you stay confident that your jobs are both compliant and competitive.
Balancing Productivity and Retention
Labor productivity rose 3.3% in the second quarter of 2025, while unit labor costs increased just 1.0%, according to recent BLS data. The gains suggest companies are finding ways to do more with leaner teams—but sustaining those results through 2026 is another challenge.
Many organizations are also expanding their use of AI to drive efficiency. Yet most are still in the early stages of capturing its full value, as they work to build the systems, governance, and training needed to turn potential into performance. The productivity payoff will depend not just on technology, but on people.
Leaders want more output, but HR knows productivity isn’t sustainable if turnover stays high. Filling roles quickly may solve short-term gaps, but hiring for fit and retention has far greater long-term impact—on performance, culture, and morale.
How your staffing agency should support you
Your staffing agency should focus on fit, not just bodies. They should understand your business, learn the demands of your roles, and build talent pipelines that support both immediate needs and long-term retention. A strong agency is proactive—helping you plan ahead, reduce early turnover, and keep the right people in place so performance stays strong and ready for what 2026 brings.
Looking Ahead to 2026
The challenges shaping 2026 — uneven labor supply, evolving compliance rules, and pressure to do more with leaner teams — are already taking shape. HR leaders who plan ahead will have the advantage, especially when they partner with a staffing agency that brings insight, adaptability, and a clear understanding of what drives retention and performance.
If you’re rethinking your approach for the year ahead, our Staffing Agency Evaluation Checklist is a simple way to start. It helps you see where your current agency delivers, where gaps may exist, and how to make sure your staffing strategy is aligned with your goals for 2026.
Download our free Staffing Agency Evaluation Checklist.
Curious about what other staffing options might look like? Let’s start a conversation.
