May was a challenging month for staffing. We saw a predictable slowdown in the final weeks of April as many kids and families were out of school and the office. Following this break, the tariff strategy announcement sent markets into freefall and created an immediate level of uncertainty for companies and job seekers.
Finally, we watched as Duolingo’s CEO announced that it would replace all its contract staff with AI agents. Cumulatively, these events have created a level of uncertainty that has shrunk pipelines and created panic in the job market. New jobs abruptly slowed, and confidence was crushed.
Even as comments have been walked back and the tariffs look to be dramatically reduced, this is an indication that we will see a volatile hiring market over the next few years. Uncertain market conditions make hiring permanent employees more difficult.
During this time, companies should reconsider their hiring strategy and pivot to a contract or contract-to-hire model. If your roadmap’s progress has slowed, hiring contract and contract-to-hire employees will allow for a faster on-boarding process without the long-term commitment.
- Michael Dsupin, CEO
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