Seemingly, in the blink of an eye, we’ve gone from a strong, steady, growing economy to an economy that contracted in the first quarter of 2025 and is teetering on the brink of slipping into a recession. And, the U.S. unemployment rate rose to 4.3% in August of 2025 from 4.2% in July, aligning with market expectations to reflect the highest proportion of joblessness since October of 2021.

This begs the question—how will this affect my organization, specifically hiring? Well, even in challenging economic times, whatever comes— cost-cutting, hiring freezes and fewer job openings— talent remains your biggest asset, which makes the process of hiring as important as ever. Economic uncertainty creates a larger pool of job seekers, intensifying competition for limited roles. And prompts employers to be more cautious and selective, making each hire a critical, higher-stakes decision with a smaller margin for error. 

Uncertainty creates opportunity— with more job seekers searching for their next employment opportunities, there is an unprecedented opportunity to tap into rarely available talent. Securing your next wave of strong hires now will allow your business to gain a competitive advantage as the economy improves.

Hiring the right talent is always challenging, no matter the current economy.

In uncertain economic times, all of the things that make hiring difficult in normal circumstances are compounded and you have to navigate several additional factors that make things even tougher. 

• In-demand roles are still competitive— many roles will always be competitive—even at times when unemployment is on the rise— for instance, companies across industries and niches are always hiring for revenue generation and digital roles

• • So, while you may believe you’re reaping the benefit of more active job seekers during a downturn, know that your competitors may be actively hiring for those same positions.

• Resume review fatigue compromises your decision making— the typical  open position attracts 250 resumes on average, and with more active job seekers in the market, you can expect the number of applicants to only increase

• • • With a high-volume of inbound applicants, it’s difficult and time-consuming to effectively narrow your candidate pool, and as the process becomes tedious, staying focused and giving proper attention to each candidate impacts your ability to consistently make the best possible hire.

• Jobs take more time to fill— with a higher volume of applications coming through, the hiring manager has a lengthier hiring process cut out for him or her. Statistics show that open positions take 42 days to fill on average. Challenging economic times can easily extend this because of the high volume of applications, yet organizations may find themselves less able to absorb the financial impact of leaving a role empty

• Passive candidates are even less likely to respond— regardless of the economic climate, passive talent is difficult to acquire— statistics show that 75% of LinkedIn messages to passive candidates fail

• • • In challenging economic time, that number grows— employees are worried about a shaky job market, and understandably so— if they feel their current job is stable, with loyalty from their employer, they will be inclined to preserve that opportunity rather than entertaining an uncertain possibility elsewhere

• The stakes are higher— in uncertain economic times, your organization may be closely monitoring its financials, and a hiring freeze may be on the table as a possible cost controlling measure— this leaves an even smaller margin for error— every hiring decision is critical—you must make the right hire the first time, when the threat of a hiring freeze looms

With the right mindset, it’s easy to hire effectively in uncertain economic times.

With what seemed like the flick of a switch, we’re shifting from a candidate’s market to an employer’s market. At first, this might appear to be a positive shift for you, but as we’ve shown, it comes with its own set of challenges that make hiring a difficult undertaking during turbulent times. Here are some proven ways to flip the script and win in these challenging times.