Light Industrial Staffing in 2025: A Mid-Year Pulse Check

As we approach the halfway mark of 2025, the light industrial staffing industry finds itself at a pivotal point—caught between economic headwinds and emerging opportunities. While the early part of the year has presented challenges, several encouraging trends and innovations are reshaping how companies source, manage and retain light industrial talent.

Whether you’re a staffing firm executive, warehouse operations manager or HR leader at a manufacturing company, understanding the shifting dynamics of this sector is key to staying competitive.

The Numbers: Is Staffing Up or Down in 2025?

Let’s address the big question first — how is the light industrial staffing sector performing so far this year?

According to data from the American Staffing Association and SIA (Staffing Industry Analysts):

• The U.S. industrial staffing market shrank by 10% in 2024, primarily due to inflationary pressures, client hiring caution, slower manufacturing output, and a broader shift away from temporary staffing toward permanent roles.
• In 2025, however, a modest rebound of 1-5% is projected, driven by increased nearshoring, infrastructure investment, and a stabilizing economy.
• Temporary help employment dipped by 15,400 jobs in early Q1, but demand has remained steady in critical sectors such as logistics, distribution, and food processing.

In other words: we’re not in a boom year, but the ground is stabilizing — and smart companies are already gearing up for growth.

Trend #1: Skills-Based Hiring Becomes the Norm

The most consistent trend across clients and sectors in 2025? A dramatic shift toward skills-based hiring.

With talent shortages and rising labor costs, employers are less focused on educational background and more interested in hands-on experience and demonstrated ability. For roles such as:

• Forklift operators
• Assembly line technicians
• Quality control inspectors
• Material handlers

Employers across the light industrial sector are moving away from traditional hiring filters such as formal degrees or long tenures and shifting their focus to what truly drives productivity: hands-on experience, technical competency, and learnability. This approach has also opened doors to non-traditional labor pools, including second-chance hires and older workers re-entering the workforce.

Trend #2: Technology Reshapes Recruiting and Workflow Management

Digital transformation is no longer a buzzword—it’s an operational necessity.

• Light industrial staffing firms are investing in automation for applicant tracking, onboarding, payroll, and billing.
• Firms using AI-powered candidate matching saw faster placements and higher client satisfaction scores.

On the floor, automation is also increasing. While robots and AI aren’t replacing the human workforce yet, co-bots and automated picking systems are changing job descriptions—and requiring new kinds of skills from workers.

Proactive staffing agencies are now offering micro-upskilling programs in basic robotics, safety software, and machine operation.

Trend #3: Flexible Staffing Models Are In Demand

The rise in on-demand labor models and economic uncertainty is pushing many employers to favor temp, temp-to-hire, and project-based staffing.

This flexibility allows businesses to:

• Scale labor to meet fluctuating production schedules
• Test new markets or products without long-term headcount commitments
• Navigate uncertain consumer demand more nimbly

From a candidate perspective, gig-like work appeals to younger workers who value autonomy and scheduling flexibility. Agencies offering app-based shift scheduling or daily pay options are gaining a competitive edge.

Trend #4: Nearshoring Fuels Domestic Labor Demand

Geopolitical shifts and supply chain volatility have accelerated the trend of nearshoring manufacturing closer to the U.S.

As companies bring production back from overseas:

• There’s a marked increase in demand for light industrial labor in border states, particularly Texas, Arizona, and North Carolina.
• New facilities are opening in Tier 2 and Tier 3 cities, where labor is available but underutilized.

If your staffing firm isn’t already building relationships with manufacturers expanding regionally or looking to onshore production, now is the time.

Trend #5: A Changing Workforce Brings New Expectations

The light industrial workforce is becoming more diverse and multi-generational.

• Gen Z workers are expected to comprise approximately 27% of the U.S. workforce over the coming years, with a significant portion entering fields like manufacturing and skilled trades.
• This group values transparency, quick feedback, digital-first interactions, and inclusivity

To attract and retain them, agencies must rethink onboarding and communication—mobile-friendly applications, fast interview scheduling, and clearly defined growth paths matter.

At the same time, experienced workers aged 55+ are returning to the workforce due to inflationary pressure. These workers value stability, in-person support, and clarity of expectations.

Meeting both ends of the demographic spectrum requires customized engagement strategies, not one-size-fits-all thinking.

Final Thoughts: Staffing Smart in a Changing Market

So far, 2025 is a year of recalibration in the light industrial space. While growth is modest, the foundations are being laid for smarter, tech-enabled, more resilient staffing models.

Success this year will belong to firms and businesses that:

• Embrace automation and data-driven hiring
• Align with candidates’ evolving preferences
• Build flexible, scalable talent pipelines
• Prioritize worker experience and upskilling

Want to stay ahead of the curve?

Let’s talk about how we can help your team build a future-ready light industrial workforce.