As the U.S. economy continues to grapple with inflationary pressures, budget reshuffling, and increased scrutiny on federal spending, recruiting teams—particularly those tied to government contracting and defense—are feeling the squeeze. With reductions in force (RIFs) becoming more common and economic unpredictability clouding long-term planning, the competition for talent has grown even more complex.
A Two-Front Challenge for Recruiters
Recruiters are now tasked with navigating not just the shortage of qualified candidates, but also an increasingly risk-averse job seeker pool. Professionals who might have previously been open to new roles are hesitating, opting to stay with their current employer even in uncertain environments, rather than gamble on a new opportunity amid possible contract cuts or hiring freezes.
The fear of moving to a new job only to face layoffs in six months is real. It’s hard to convince passive candidates when they’re seeing RIFs across the industry—even among the ‘stable’ players.
Contract Uncertainty Undermines Candidate Confidence
For government contractors, much of the hiring pipeline depends on awarded contracts and program continuity. But with procurement delays, contract recompetes, and shifting agency priorities, job offers can become contingent—or vanish entirely.
Proposal-based hiring (where candidates are recruited for positions tied to pending contract awards) is particularly impacted. But could this increase candidates ghosting or backing out of contingent offers due to the perceived instability?
Ironically, RIFs have led to a surge in job applicants—but that doesn’t always make recruiting easier. Many of those laid off may not have the specific clearances, skill sets, or agency-specific experience required for open roles.
Candidates Want More Than Stability—They Want Clarity
Beyond job security, candidates are now asking deeper questions about a company’s pipeline, culture, and contract health. Recruiters must be able to articulate not just the role—but the stability and strategic direction of the program it supports.
Recruiters will have to coach hiring managers to be transparent about timelines, funding, and potential risks. It’s the only way to build trust right now.
What’s Next: Strategies to Survive the Hiring Storm
Some employers can adapt by:
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Doubling down on internal mobility to keep top performers engaged.
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Improving employer branding to highlight long-term stability.
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Shortening hiring cycles to compete with commercial tech.
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Offering skill-building opportunities in lieu of traditional promotions.
Recruiters should also lean into storytelling—crafting value-driven narratives that align with mission, flexibility, and career growth, even during uncertain times.
In a hiring landscape shaped by economic headwinds and unpredictable funding, recruiters must do more than fill roles—they must rebuild trust and inspire confidence in a future that feels anything but certain.
