Job seekers are navigating a minefield of ghosting, misleading job postings, and rising AI-driven pressure, not to mention a highly competitive market, according to Greenhouse’s 2025 Workforce and Hiring Report. The hiring experience is broken — and staffing agencies have a critical opportunity to step in, rebuild trust, and lead with solutions. But doing so requires bold action and a deep understanding of what candidates are truly facing.

1. It’s a brutally competitive market

Nearly 70% of job seekers in Greenhouse’s survey of 6,000 workers in the US, UK, and Ireland describe the job market as “extremely” or “very” competitive. Only 7% believe the market favors candidates.

What this means for staffing agencies:

Now more than ever, job seekers want guidance. They’re overwhelmed and unsure how to stand out. Agencies that provide hands-on coaching, resume refinement, and strategic targeting can become invaluable allies.

Consider:

• Offering workshops or 1:1 sessions on standing out in a competitive applicant pool.
• Positioning recruiters as “career coaches,” not just job matchers.

2. Friction is killing applications

In the US, 46% of candidates abandon applications when forced to re-enter resume data. Complex portals, multi-page forms, and broken autofill features are common dealbreakers. The job search process is already taxing — they don’t want to swim upstream if they don’t have to.

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What this means for staffing agencies:
Your application process can be a differentiator or a deterrent. If your intake tech creates hurdles, you’re losing top talent before you ever meet them.

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Consider:

• Streamlining candidate applications — autofill, mobile-optimized, and user-friendly.
• Auditing client-side application processes and advocating for candidate-friendly changes.

3. Communication gaps are eroding trust

More than six in 10 US candidates (63%) say they’ve been ghosted after interviews. This jumps to 78% among Gen Z. And the ghosting goes both ways — 50% of candidates in the US have ghosted employers, largely due to poor communication or delays.

What this means for staffing agencies:
Timely, transparent communication is non-negotiable. Agencies must bridge the gap between candidates and clients, ensuring neither side feels left in the dark.

Consider:

• Setting expectations with clients on response times and follow-ups.
• Using automation thoughtfully to keep candidates updated, especially if a decision is delayed.

4. AI is reshaping candidate behavior

Nearly a quarter of US candidates (22%) are using AI agents to apply for jobs. Many also use it to prep for interviews, write cover letters, or even generate fake portfolios.

What it means for staffing agencies:
The line between ethical AI use and “gaming the system” is blurring. Recruiters must adapt to AI-savvy candidates while upholding quality standards.

Consider:

• Educating candidates on appropriate AI use and helping them avoid ethical missteps.
• Using AI tools internally to screen submissions for authenticity and skill relevance.

5. Misaligned compensation and “bait-and-switch” tactics are common

The majority of US candidates (72%) report bait-and-switch experiences — misleading salary ranges, changed job duties, or downgraded roles. Meanwhile, Boomers are frequently lowballed, while Gen Z sees better offers.

What this means for staffing agencies:
Candidate trust is fragile. Agencies can restore it by advocating for transparency in job postings and compensation.

Consider:

• Insisting on accurate, detailed job descriptions from clients — no vague titles or unrealistic promises.
• Helping candidates understand market-based salary expectations to reduce mismatches.

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