SoloPoint Insights

KEY POINTS:

• Reduced Hiring Competition: With the ISM Employment Index down 2.9%, fewer companies are hiring, easing the hunt for top talent.
• Stronger Negotiation Position – Worker bargaining power declined significantly in Q1 2025, with fewer candidates receiving pay increases (60% vs 73%) or signing bonuses (20% vs 43%)
• Expanded Talent Access – Rising unemployment (4.2%) and competitor layoffs create opportunities to acquire skilled professionals previously unavailable in tighter markets

Uncertainty in the current economy is largely driven by unpredictable global trade policies, such as broad tariffs on U.S. trading partners.

This has led to many companies waiting on the sidelines and holding back on hiring. While they’re on a standstill, the more competitive employers who continue building their teams could have a large advantage when the markets pick up again by having a robust workforce. 

If companies have the funds and bandwidth, here are the benefits of steady hiring during uncertainty:

• Reduced Recruitment Competition: With 71% of employers planning staff reductions due to financial concerns, many organizations are scaling back their recruiting efforts to cut costs. As more companies pause hiring, competition for top talent decreases—working in favor of those who continue to recruit. As a result, recruiter fees are often lower, candidate response rates improve, and the overall hiring landscape becomes less competitive. For companies willing to act while others retreat, this creates a prime opportunity to strengthen their teams with less friction.
• Stronger Negotiating Power: According to a recent ZipRecruiter survey, worker bargaining power has declined in Q1 of 2025, compared to Q4 2024. This allows employers to structure offers that are both fair and cost-effective. Key findings include that of the 2,000 job switchers surveyed:

These shifts provide employers with a more favorable negotiating environment, enabling them to secure great hires without overextending compensation budgets.

• Access to More Talent: As of March 2025, the national unemployment rate edged up to 4.2%, up slightly from 4.1% the previous month, signaling a growing availability of skilled engineers entering the job market. Employers who continue hiring during economic slowdowns can tap into this expanded talent pool, gaining access to highly skilled candidates who might not be available in tighter labor markets.
• Add Key Talents from Competitors: Challenging market conditions often loosen the grip companies have on their top talent, especially if those organizations are undergoing layoffs, restructuring, or cost-cutting. This creates a strategic opportunity for companies to engage in “talent poaching”, the legal and competitive practice of recruiting skilled professionals directly from rival companies by offering better career prospects, compensation packages, or benefits. Not only does this bring in valuable expertise and gain a competitive edge, it also provides skilled employees with opportunities for higher pay, career advancement, and exposure to different work environments.

Employees often gravitate toward companies that are growing. In fact, over 40% of hiring managers have admitted to posting “ghost jobs”—roles that aren’t intended to be filled—simply to project growth or boost internal morale. However, unlike companies that use job postings as a branding tactic, organizations that are genuinely and actively hiring usually stand out. This authenticity makes them more attractive to skilled candidates and positions them as true employers of choice.

• Flexibility to Scale Workforce and Mitigate Hiring Risks: Economic uncertainty calls for agile hiring strategies, such as contingent or contract staffing. With fewer full-time job openings available, candidates may be more open to contract or contract-to-hire roles that allow companies to scale their workforce for short-term project needs or evaluate candidates before making long-term commitments. It minimizes risks with skills or cultural mismatches, reduces overhead, and provides flexibility to adjust workforce size as business demands change.

In conclusion, while unpredictable global trade policies may have triggered a widespread pause in hiring, forward-thinking companies should seize the opportunity presented by reduced competition, stronger negotiating power, and an expanded talent pool. A consistent hiring approach will not only secure top talent but also strategically position organizations for significant growth when the economic landscape improves.

Don’t let this crucial window pass you by. 

Partner with SoloPoint Solutions today to build the resilient, high-performing workforce that will drive your future success: