2026 U.S. Labor Market Outlook: HireQuest Predicts a Year of Reset, Reallocation and Stabilization
Data from 400-office staffing and recruiting firm's network points to a 2026 labor market with
renewed demand for skilled work, flexible contract roles and stronger alignment between
employer and employee demands.
GOOSE CREEK, S.C., Nov. 18, 2025 /PRNewswire/ -- After several years of volatility and record-breaking shifts in hiring trends, the 2026 labor market is poised for stabilization and strategic reset, according to new data from staffing and recruiting leader HireQuest, Inc. (NASDAQ:HQI). Based on survey responses from across its more than 400 offices representing its HireQuest Direct, Snelling and MRI Network brands, 2025 data points to a steadying job market with fewer extremes and early signals of reallocation across industries, skill levels and regions.
HQI"2026 won't be defined by a hiring boom or a bust, but by more balance," said Rick Hermanns, President and CEO of HireQuest, Inc. "We're seeing a labor market that's stabilizing around new priorities: flexibility, fit and the kind of skilled work that can't be automated."
2026 Outlook: A Market Finding Its Equilibrium
HireQuest's nationwide network of franchise offices, supporting on-demand staffing and corporate recruiting across industries, predicts more steady or improved labor market conditions in 2026 as worker supply and employer demand realign.
- 68% of offices said time-to-fill for open roles steadied in 2025, while 35% saw increases – a clear indicator of market stability.
- 61% of recruiters expect time-to-fill to remain stable in 2026, while 15% anticipate improvement as candidate supply normalizes.
- 2025 application volumes were largely flat or slightly up, showing mixed signals, with nearly 40% of offices seeing an increase.
- Fractional and contract roles are on the rise, signaling a more blended workforce model ahead.
- Employers are moving faster to secure top candidates in full-time roles, as seen by late-2025 hiring urgency uptick.
Key Forces Shaping 2026 Hiring
The job market is stabilizing around consistent, skill-based hiring rather than large-scale expansion or contraction. Key trends that HireQuest office owners and recruiters are watching include:
- AI and automation will speed recruiting and improve match quality.
- Reshoring and tariff relief are reigniting manufacturing and construction.
- Economic and political shifts remain wildcards, as tariffs and new federal legislation could continue to impact activity.
- A "local and loyal" workforce as candidates favor hybrid or local-only roles over relocation, which HireQuest's community-based franchise model can deliver on.
- Widening pay and expectation gaps as employers continue seeking "unicorn" talent at pre-2020 rates, lengthening hiring cycles for corporate roles.
- Late 2025 layoffs may reset, but not reverse the market and could further spur employee reskilling and contract-based hiring.
Where the Jobs Are: Skilled, Essential, and Evolving
Sectors predicted to see the most growth in 2026 will concentrate in areas where human skill remains indispensable and persistent skilled talent gaps persist, such as:
- Manufacturing, Construction & Industrial: Reshoring, infrastructure investment and early signs of easing tariffs are fueling demand. Within these sectors, skilled trade roles like welders, technicians and engineers will remain in high-demand and well-insulated from automation.
- Healthcare & Life Sciences: High demand for nurses and therapists, especially.
- Technology & AI: Job growth tied to data-center development and automation innovation, with rapid skill evolution outpacing employee training.
- Supply Chain & Logistics: Expanding alongside domestic production growth.
Job growth in administrative and office support roles is expected to continue slowing, as these routine, process-driven functions have proven most susceptible to early automation through AI.
Where the Workers Are: Local, Loyal, and Looking for Fit
Workers in 2026 are prioritizing local opportunities, flexibility and values alignment over relocation or pay alone. With nearly 70% of HireQuest offices reporting stable or improved fill rates, steady talent pipelines and trends are emerging across each U.S. region.
- Southeast & Mid-South: Industrial backbone remains strong across Georgia, Alabama and Tennessee.
- Midwest: Optimism rising as reshoring drives manufacturing rebounds.
- Southwest: Construction and energy poised for growth.
- Mountain West: Consistent industrial and logistics hiring sustained by "local and loyal" pipelines.
- West Coast: Slower corporate cycles, but surging AI and data-center hiring.
- Northeast: Conservative hiring pace, with continued focus on "perfect fit" candidates.
"The past few years reshaped how and where Americans work. 2026 will be about refining that shift, matching the right people to the right opportunities and ensuring businesses can scale efficiently without losing sight of the human element," said CEO Rick Hermanns. "Our network is built for that kind of balance: local expertise, national reach and a clear focus on results."
To learn more, discover open roles or connect about your company's hiring needs, visit hirequest.com
About HireQuest, Inc.
HireQuest is a franchisor of staffing solutions with a presence across the U.S. and international markets. Through its primary divisions – HireQuest Direct, HireQuest Health, MRINetwork, Snelling, and TradeCorp – the company provides temporary, direct-hire, and contract staffing solutions across industries, including construction, light industrial, healthcare, finance, manufacturing, cybersecurity, and engineering. From on-demand staffing to executive search, HireQuest's divisions operate as one team for our customers, delivering workforce solutions that drive growth and change lives. For more information, visit www.hirequest.com.
Media Contact
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SOURCE HireQuest