Industry Insight Report: Staffing and Recruiting Q3-2025

Major Industry Development

The healthcare sector’s dominance in job creation is defining the employment landscape in Q3 2025. According to the U.S. Department of Labor, healthcare now supports over 23.5 million jobs, nearly double the manufacturing sector. For staffing and recruiting firms, this trend underscores the continued resilience of healthcare placements—particularly for nurses, allied health professionals, and administrative support positions tied to patient care.

However, the passage of federal legislation cutting over $900 billion from Medicare spending has introduced new uncertainty. These cuts could dampen hiring within certain sub-sectors, especially among smaller healthcare providers and long-term care facilities. For staffing owners, diversification across healthcare-adjacent categories, like behavioral health, home care, and outpatient services, may help offset potential volatility. Buyers remain highly interested in firms that maintain exposure to recession-resistant verticals, and those with established healthcare contracts continue to command premium valuations.

Employment and Wage Trends

Employment across U.S. employment services fell 3.3% year-over-year in August and is down 11% over the past decade, reflecting cyclical shifts and broader automation in recruiting processes. Over the last three years, employment in the sector declined 17%, compared to a 3.7% increase in overall private employment. Despite the contraction, staffing firms with advanced sourcing technology and candidate relationship management systems continue to outperform generalist competitors.

Average hourly wages for nonsupervisory employees at employment services rose to $27.60 in July, a 1.5% increase year-over-year. Over ten years, wages have grown 64.5%, outpacing the 49% gain across all private sectors. This wage expansion signals ongoing demand for skilled recruiting professionals and candidate scarcity in technical fields. For Texas-based staffing firms, wage inflation remains a top operational concern, but many continue to leverage contract-to-hire models and offshoring to preserve gross margins and profitability.

Industry Forecast

Sales for U.S. employment services firms are projected to expand at a 6.8% compound annual growth rate (CAGR) from 2025 to 2029, outpacing the broader economy. Much of this growth is expected to stem from healthcare and professional services staffing, along with IT and logistics. Texas firms are particularly well positioned to benefit, as the state continues to lead the nation in population growth and corporate relocations, both of which fuel demand for flexible, skilled labor solutions.