With so much change happening so rapidly it is hard to know where we are headed! It is exciting as well as a bit daunting. But never fear, the winds that are blowing will most likely sweep recruiters to new heights of success and are harbingers of good things to come! Recruiters who watch the trends and are alert to new opportunities can take advantage of this new paradigm. This article will touch on a few of the indicators of potential good times to come!

Tax Reductions

An important spur to business activity and profitability is the very likely extension of tax reductions introduced in the Tax Cuts and Jobs Act of 2017 and set to expire at the end of 2025. Cementing or improving these tax reductions will be a big factor in stimulating business activity, and, correspondingly, the need for people to do the work. Improving consumer confidence will lead to more discretionary spending and the collateral effects of this spending will ripple through the labor marketplace as firms hire more staff to keep up with demand. Recruiters can be kept busy making placements!

Easing of Regulations

The new federal administration will undoubtedly continue to whittle down the morass of federal regulations, following the practice begun in 2017. Reduced regulation of businesses, large and small, will lead to increased economic activity. Businesses stifled by over-regulation will have the confidence to expand their operations, open new locations, and move into different markets.

Creation of a Business-Friendly Environment

The factors cited above along with the promise that we will see serious reductions in energy costs, inflation controlled, and law and order re-established will create a business-friendly environment for retail, service, and manufacturing firms, all of which should increase the demand for personnel. A countertrend is the continuing drag on retail posed by the growing trend of shopping online. 

The Coming Manufacturing Renaissance

In addition to the factors above, we are likely on the cusp of a surge in the growth of domestic manufacturing industries with incentives set to encourage domestic firms to invest in new plant and equipment and lure foreign firms to move their operations to the US. These incentives include reduced corporate tax rates, accelerated depreciation, cheap and available energy, and expedited approvals of permits. Another benefit for foreign investors is the avoidance of threatened tariffs on imported goods. Every plant that gets built requires materials, design and construction services, and operating staff. The collateral effect of a new plant means growth in the area with new homes popping up, along with service industries, schools, and on and on and on.

A $500 billion private investment over four years was announced January 21, 2025, for the construction and operation of new data centers, the first of which will be sited in Abilene, Texas.¹ The economic activity generated by this project alone will be tremendous! This project, with others like it, will spur the need to expand the electric power generation and transmission system. And this need will spur the production of more energy supplies. Two more major areas of growth!

The Continuing Battle Over Remote vs Office Work

Many workers enjoying remote work may soon face the requirement to return to the office, reversing the trend during the Covid pandemic. According to Marq Burnett’s article in the San Antonio Business Journal² “2024 saw a significant increase in ... dialing back on remote work flexibility, or eliminating it entirely.” Marq further notes that “Just 17% of CEOs said they envision traditional office roles being hybrid over the next three years, a substantial drop from 46% earlier… “ in 2024. On January 21, 2025, the incoming administration issued an executive order mandating in-office work for federal employees. This may present opportunities for recruiters to place workers who prefer to change jobs in order to stay with the remote work option.

The Rising Tide of AI  

None of us can ignore the growth in Artificial Intelligence (AI) and its tentacles spreading into every aspect of our lives. AI, of course, is just a tool, a tool to be used to increase one’s productivity. Recruiters should make themselves aware of the benefits and the risks of using AI and apply it with discretion in their business. Citing Marq Burnett again, “… companies should perform due diligence on tools and vendors – and be careful when using AI with human-resource functions.”

So, What to Do?

I noted in a previous article³ that “The times they are a-changin’.” Well, the changes cited above are exciting and point to good times ahead for the search and staffing industry. There should be a wave of business activity which will present great opportunities to recruiters. Watch these trends and act accordingly to position your firm to maximize your profitability. You can prepare your firm for this coming wave if you make your clients aware of the temp and contract option as a means of getting people working quickly with minimum long-term risk. Contract placements can reduce overall labor costs and benefits burden, minimize the risk of maintaining direct hire staff, and provide the labor to move the client’s projects forward. All parties can benefit from this: the employee is working, the client’s labor needs are served, and you are receiving income.

If you would like to discuss any of these ideas or would like help defining a business strategy, please feel free to give me a call or contact me at judy@jcsrllc.com, or visit my new website at https://www.jcsrllc.com for more information.

¹ Coggins, Madelin. “AI executives praise Trump’s Stargate Project: ‘This is a very large investment that affects all of humanity.’” Fox News, January 21, 2025.

² Burnett, Marq. “10 Things to Watch in 2025.” San Antonio Business Journal, January 10-16, 2025, Vol. 39, No. 2.

³ Collins, Judy. Keep Updated!” https://www.jcsrllc.com, November 21, 2024.

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