Hiring Slows as HR Budgets Tighten

Hiring Slows as HR Budgets Tighten

May 27, 2025, 9:28 AM

(From HR Dive) Economic pressures are reshaping HR priorities, according to the 2025 Identity of HR survey. Budget constraints — such as salary cuts, hiring freezes and reduced resources — were cited by 37% of respondents, up from 21% the previous year. Similarly, 36% named hiring as a top challenge, up from 22%, with issues including I-9 documentation and onboarding. Experts point to a “white-collar recession,” as demand for knowledge workers slows while blue-collar hiring remains steady. HR leaders now face increased pressure to demonstrate ROI, with many organizations hesitant to hire amid demands for greater measurable outcomes.

More from HR Dive