Staffing Industry Trends – January 2026

5 Ways Staffing Firms Can Win More Business in Today’s Tough Hiring Market

According to a recent Entrepreneur Magazine article, today’s hiring market is defined by a growing disconnect. Recruiters say they can’t find the right talent, while candidates feel unprepared and increasingly mistrustful of AI-driven hiring. With fewer openings, more competition, and rising frustration on both sides, staffing agencies have a unique opportunity to step in. 

👉 Read the full article to explore all five strategies in detail.

---

Staffing Stats

Labor Market Snapshot: Cautious Signals, Real Reasons for Optimism
December data show a softer staffing index, but year-over-year staffing employment remains up 5.2%, offering cautious optimism as we enter 2026. Layoffs closed the year at their lowest level, hiring plans improved, and job growth continued in key service sectors. With temp penetration still declining, staffing firms are navigating a tighter, more competitive market driven by data and efficiency.

👉 Learn more trends to watch in staffing.

Staffing Firms’ Most Pressing Concerns in 2026

Cash Flow, Credit Risk, and Access to Funding
Recent survey data from the American Staffing Association’s Weekly Economic & Business Outlook indicate that firms are under pressure from trade and tariffs, softer demand, labor challenges, inflation, and economic uncertainty. Cash-flow risks remain close behind, with customer payment health and access to funding continuing to weigh on business decisions.

👉 Click here to learn how to protect your cash flow.

---

The 25 Fastest-Growing Roles in the U.S.

LinkedIn Jobs on the Rise: 2026 highlights the 25 fastest-growing roles in the U.S., led by AI, data, and strategic advisory positions. The list shows how AI, entrepreneurship, and flexible work are reshaping career paths and where opportunities are emerging in a rapidly changing job market.

👉 Click here to learn about the fastest-growing roles. 

---

WOTC Has Expired. What’s Next for Employers?

The Work Opportunity Tax Credit (WOTC) helps employers offset hiring costs by rewarding the employment of individuals who face barriers to work. While the existing tax credit expired Dec 31, 2025, and potential changes are under consideration in Congress, staffing firms and labor-intensive employers are paying closer attention.

👉 Read more to see how WOTC could impact your hiring and tax strategy.

---

Scale Your Staffing Agency with Payroll Funding Solutions

Payroll funding with Scale Funding is a financing solution that delivers consistent cash to your business when needed. Waiting for invoice payments from your customers is frustrating. That’s where Scale Funding comes in. We provide immediate cash for your unpaid invoices so you can keep up with business demands such as bills, payroll, new resources, and growth.