How Immigration Policy Changes & Tariff Uncertainty Are Shaping the Staffing Industry

As staffing agency leaders navigate an already tight labor market, shifts at the federal level are adding new complexity to the business of talent. From increasing visa restrictions to the threat of rising (or unpredictable) tariffs, agencies can find themselves in a tough spot. Staffing agencies that serve as strategic partners in workforce planning and cost management, in addition to filling open roles, are likely to have greater success in this challenging environment.

To be an effective strategic partner, you must remain informed about recent changes. Here’s what’s happening, what it means for your clients, and how your agency can stay ahead.

Immigration Policy Is Tightening

H-1B and H-2B visa programs are under tighter scrutiny, with more revocations and controls making it harder for employers to rely on foreign workers. Staffing agencies will need to have a renewed focus on domestic labor as access to international talent becomes more limited.

For staffing agencies, this is a call to:

• Shift your sourcing strategy. Explore underutilized talent pools like retirees,second-chance workers, or veterans. Support clients in developing roles that match these candidates’ skills.
• Offer upskilling solutions. Whether you’re a large agency with training infrastructure or a niche firm focused on specific industries, providing skill-building options can enhance your value. This can be especially beneficial in fields like IT, logistics, and skilled trades.
• Get your paperwork in order. I-9 audits are rising, and staffing agencies are increasingly the target. Ensure your documents are current, your teams are trained, and you use tools like E-Verify to ensure compliance.
  

Tariff Pressures and Uncertainty Are Changing the Workforce Equation

As federal trade policies shift, businesses are bracing for the ripple effects. Tariffs on imported goods could mean higher costs for raw materials and supplies, especially in manufacturing. The uncertainty is driving more companies to hesitate on permanent hiring.

How staffing agencies can help:

• Be a cost-effective workforce partner. Clients may need help adjusting labor strategies to remain profitable. Temporary and temp-to-hire models offer flexibility that full-time hires can’t, especially when it’s unclear how costs will evolve.
• Position contingent labor as a hedge against volatility. When companies are worried about the future, the ability to scale staffing up or down becomes a competitive advantage. Agencies that understand this dynamic can help clients maintain productivity without overextending.

Where Opportunities Still Exist

Even amid these challenges, some sectors continue to see healthy growth. According to the Bureau of Labor Statistics, some of the fastest-growing jobs are wind and solar technicians, healthcare roles such as nurse practitioners and health services managers, and positions in cybersecurity such as information security analysts. Additionally, emerging roles in AI, such as prompt engineers, create new opportunities for staffing agencies.

Staffing agencies have a clear opportunity: become the strategic partner your clients need. Embrace current trends by building partnerships with clients to co-develop training programs or by targeting fast-growing job titles. Support clients through compliant hiring and help them think creatively about talent. Agencies that are prepared to guide clients through uncertainty with confidence and flexibility are poised to lead in this environment.

Meet Sheri Tischer, Vice President, Staffing Practice

Sheri also serves on the Board of Directors for the Minnesota Staffing and Recruiting Association, where she supports the continued success of the staffing community.