Volatile Economy Spurs Adaptive Workforce Strategies

An April survey found US CEO confidence at a 12-year low. Meanwhile, the need to hire remains steady, and 40% of small business owners reported unfilled jobs in March.

Despite strong demand for talent, companies are cautious due to an uncertain global economy and conflicting trends. For example, Japan’s economy grew by 2.2% at the end of 2024 despite risks from low spending and deflation. Meanwhile, inflation, rising debt and new tariffs are ongoing concerns in other regions. Regional market trends indicate continued mixed signals from the market and volatile hiring demand.

54% of EMEA employers expect talent availability to drop.

According to the World Economic Forum, EMEA leaders expect ongoing hiring challenges through 2030 despite shifting demand and economic volatility.

45% of US companies anticipate layoffs in 2025, yet job openings exceed unemployed workers by 700,000.

Layoff headlines clash with a steady pace of job openings as TA teams manage cuts related to outdated skills alongside increased demand for AI-driven roles.

A planned reduction of 280,000 US federal workers announced in early 2025 is underway.

Cuts announced by the federal government have been executed or planned across 27 agencies, with reduction totals rising daily.

33% of jobs in Australia face skills shortages.

Demand for talent continues to outpace supply in Australia. Elsewhere in APAC, 43% of Singapore companies plan to hire this year, while India faces a shortfall of 29 million skilled workers.

Our View

Upgrade your company's
data infrastructure.

Predictive workforce data can provide a detailed view of the talent you seek. Traditional TA reporting reflects past performance and often lacks actionable intelligence. Modern tools deliver real-time data on costs, supply and hiring efficiency, paired with AI-driven forecasting to enable proactive planning.

Build a flexible TA ecosystem to meet changing demands.

Hiring surges and new skills demands can emerge suddenly. The right talent solutions partner offers agility to respond with speed and precision. From training and technology to employer branding and market research, expect deep expertise in all facets of TA with resources to address specialized needs.

Stay flexible with job requirements & workforce design.

Consider flexible job requirements and workforce design. Decide whether to hire skilled external candidates or train new employees. Evaluate if a role should be filled by a contractor or a hybrid model. A talent partner with industry knowledge can assess these choices to optimize cost, quality and speed for your business.

To effectively leverage public sector experience, understand government job classifications and pay structures. Learn federal terminology for roles, skills and compensation, or have resources available to provide this knowledge to your organization.

Plan to transition government workers.

Expert Perspective

What’s driving hiring strategies for companies in the EMEA region? Get KellyOCG’s market insights report, covering economics, talent trends and strategic TA perspectives. Other regional and industry reports are also available.

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