How Companies and Talent Can Keep Their Footing During Uncertain Times
As the year goes by, it’s dawning on many people that thriving in 2025 is like walking a tightrope during an earthquake. Success only happens through the combination of careful movements and reflexes. That goes for both organizations and professionals.
If you’re going to avoid being jostled back and forth by an uncertain job market, you’re going to need to stay current with the latest conditions as well as strategies that can provide you with some stability. Here are some thoughts from our industry experts:
What Is the State of the Market?
According to J.P. Morgan’s 2025 U.S. Business Leaders Outlook, 37% of SMB executives identify uncertain economic conditions as one of their top three concerns, following workforce challenges (46%) and revenue/sales growth (39%).
Startups are feeling the strain as well. Despite a record $91.5 billion in venture capital funding in Q1, analysts note that many are delaying public debut plans due to lingering market uncertainties. Even resilient organizations are responding with caution, pressing pause on long-term investments like full-time hiring
In the federal sector, the U.S. Treasury’s plan to outsource or eliminate up to 25% of staff in some divisions is just one signal in a broader trend of cost-cutting and hiring freezes. Across agencies, nonprofits, and contractors, the message is clear: 2025 calls for agility and caution.
Why Hiring Budgets Are the First to Feel the Squeeze
When the economy becomes unpredictable, hiring budgets are often cut early to stabilize expenses. While this can offer short-term relief, it also brings long-term consequences—burnout, reduced service delivery, and missed growth opportunities.
For startups, tighter funding cycles result in leaner teams and place greater pressure on every hire to deliver higher returns. Even with significant venture capital activity, many organizations are still delaying public launches and freezing headcount due to market volatility and smaller-than-ideal teams.
In the federal space, cutbacks are showing up through layoffs, delayed procurements, and a growing reliance on short-term contracts, like the U.S. Treasury’s move to outsource bond-servicing operations. This is impacting the efficacy of these agencies and organizations.
Across sectors, financial leaders are making month-to-month decisions rather than annual commitments. Budgets that seemed solid in Q4 of 2024 may already be outdated by Q2 of 2025. The result is a cautious, high-stakes approach to workforce planning that demands flexibility without the sacrifice of productivity.
How Strategic Staffing Offers Flexibility Without Overcommitment
Given the state of our economic climate, staffing can feel like an all-or-nothing decision, although it doesn’t have to be. Strategic partnerships with firms like Contact 1 allow organizations to maintain productivity, meet compliance obligations, and scale teams without stretching budgets too thin.
Reducing Administrative Burden and Compliance Risk
Navigating ACA, I-9, and EEO documentation, along with PTO policies and time tracking, can drain internal resources, especially for organizations managing federal grants or subject to public sector procurement guidelines. A staffing partner takes on that heavy administrative lift, helping your HR team stay focused on core strategy.
Flexible Models that Balance Cost and Capability
Hybrid staffing supplements your reliable core team with the adaptability of experienced contractors. It’s a model that addresses ongoing skill shortage and helps maintain momentum without increasing overhead.
Aligned Talent, Delivered with Speed
When a role needs to be filled, hiring the right person is better than hiring someone fast. Our recruitment model emphasizes cultural alignment and values fit, which drives long-term impact from day one. This approach has helped organizations like CAF America not only streamline hiring but enhance their team’s effectiveness and mission delivery.
Workforce Planning That Moves with You
Whether you’re navigating a new federal initiative, managing a one-time project, or operating under uncertain funding streams, flexible options like contract-to-hire and project-based staffing help you stay agile. You can build capacity on your terms without locking into extended commitments before you’re ready.
Support for Workers Facing Career Transitions
Many professionals are navigating complex career transitions as reductions in force (RIFs) and organizational restructuring continue to impact the federal workforce. Thankfully, several targeted programs offer to support this group with both immediate job prospects and ongoing skill development.
The Career Transition Assistance Plan (CTAP) and Interagency Career Transition Assistance Plan (ICTAP) give displaced federal employees priority consideration for roles across government agencies—providing a critical bridge between positions. For those interested in reskilling, Revature offers a specialized talent program that equips former federal and government workers with the technical training needed to pursue in-demand roles in technology.
In regions hit hardest by layoffs, National Dislocated Worker Grants provide funding for short-term employment opportunities as well as training programs to help affected workers quickly reenter the workforce. Meanwhile, those seeking to transition into fast-growing fields can benefit from Google Career Certificates—accessible, self-paced programs offering credentials in areas such as AI, data analytics, and UX design.
If you’re navigating a career shift and aren’t sure where to start, Contact 1 is here to help. We work closely with professionals to identify roles that align with your experience, goals, and values. Whether you’re seeking immediate placement or exploring new career paths, our team is ready to support your next step.
Reach out to learn more about our current opportunities and job placement support.
A Shared Need for Stability—Whether You’re Hiring or Job Searching
Whether you’re an employer grappling with budget unpredictability or a professional navigating a career transition, one truth remains: workforce stability matters more than ever in 2025.
The most resilient organizations will be those that embrace flexible staffing strategies—balancing agility with continuity, and scaling without overcommitting. And the most empowered job seekers will be those who leverage targeted support, reskill into high-demand roles, and connect with the right hiring partners.
At Contact 1, we sit at the intersection of both. We support agencies, nonprofits, and private employers in building adaptable, mission-aligned teams. And we work side-by-side with talented professionals—many from the federal workforce—who are ready to bring their skills to new opportunities.
If you’re planning your next hire—or your next career step—we’re here to help you move forward with confidence.
