U.S. companies pause hiring as election uncertainty looms

NEW JERSEY, UNITED STATES — The U.S. job market is facing an unexpected slowdown, with companies reducing hiring ahead of the November presidential election. 

The Labor Department reported that job openings hit a three-year low in July, while job creation also fell short of expectations this summer. 

As businesses brace for potential policy shifts, many are putting their hiring plans on hold, leaving job-seekers in a challenging position.

Business leaders anticipate policy shifts

A recent survey by G-P, a global employment platform, reveals that 59% of U.S. executives believe the November election results could dramatically alter their business strategy. 

Debra Boggs, founder & CEO of D&S Executive Career Management, notes that the “different strategy for business regulation and tariffs and trade and taxes” between Vice President Kamala Harris and former President Donald Trump are causing companies to hesitate.

This uncertainty is particularly affecting companies with international operations and those seeking to fill senior leadership positions.

Job-seekers adapt to market conditions

The election’s impact isn’t limited to employers. Approximately 25% of job-seekers are postponing or extending their job search due to election-related uncertainty, according to a ZipRecruiter survey. 

However, Boggs advises against this approach: “The strategy doesn’t seem to make sense because if you need those roles, you’re now just waiting three more months while that role is unfilled.”

Boggs emphasized that while frustrating, this hiring slowdown “happens every single time in the months leading up to a general election.” However, she also reassured that once the election is settled, hiring will likely pick up swiftly.

Post-election hiring surge expected

Despite the current slowdown, there’s optimism for a post-election hiring boom. Boggs predicts a busier than usual holiday hiring season as companies catch up on delayed hiring decisions. 

This aligns with the G-P survey, which found that 98% of executives plan to expand their global presence in the next 12 months, with 61% prioritizing workforce growth.

For job-seekers, the key is to maintain momentum “so that when the floodgates open, you’re already in process.” Boggs suggests focusing on updating resumes and LinkedIn profiles, refining search strategies, and networking actively. By staying prepared, candidates can position themselves advantageously when hiring picks up again.