The staffing industry faces significant challenges, including a skilled workforce shortage, with more job openings than candidates, and complex compliance issues that increase the risk of violations. The gig economy is growing, with 86 million gig workers expected in the U.S. by 2027. Gen Y and Gen Z will make up 64% of the workforce by 2025, seeking flexibility. Automation and AI are becoming essential for faster, more efficient operations. Staffing firms must adapt to these trends by offering flexibility, utilizing technology, and ensuring compliance to stay competitive and avoid obsolescence.

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