Despite layoff headlines, most organizations still plan to grow. The real challenge is keeping talent and building what comes next.
The hiring outlook may not be as bleak as recent headlines suggest.
New data from The Conference Board shows CHRO confidence has reached a new high, with roughly six in 10 organizations expecting to grow their workforce in the coming months. At a time when headlines continue to spotlight layoffs, stiff competition for jobs, and economic uncertainty, the findings point to a labor market that is more resilient and active than many assume.
That view is echoed by Aaron Terrazas, an independent and fractional economist, who says the broader picture often gets lost in the noise.
“When I first looked at it, it’s not surprising to me,” he said of the survey results. “You look at the hiring rate and sure, it is down across the board, but it hasn’t fallen off a cliff. It’s slower, but not so slow that we would expect a shock drop-off.”
Much of the disconnect comes down to perception. High-profile layoffs, particularly in tech, tend to dominate coverage, while a large portion of the economy continues to move forward more quietly.
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“The companies that grab our attention are a relatively small segment of total employment,” Terrazas said. “Most businesses, especially small and mid-sized ones, are continuing to hire and continue to grow.”
Looking beyond the layoffs
Hiring is still happening across much of the economy. It just looks quieter and more measured than it did a few years ago, according to Terrazas.
After a period of uncertainty that caused many organizations to pause investment and workforce decisions, employers are beginning to move again. The pace is measured, but it’s moving in a clear direction.
“There was a moment where a lot of businesses were in a frozen paralysis,” Terrazas said.
However, Terrazas said many employers are now moving forward with hiring and investment decisions, even if conditions remain less than ideal.
That shift helps explain why confidence among CHROs is rising. This isn’t a surge in demand so much as a return to decision-making.
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At the same time, underlying labor market fundamentals remain relatively strong. Unemployment is still low, and many organizations are thinking ahead rather than reacting to short-term fluctuations.
Diana Scott, U.S. Human Capital Center Leader at The Conference Board, says the hiring outlook reflects a longer-term view of workforce needs.
“Organizations really are doing a little bit of hoarding of talent,” she says. “They’re trying to hang on to their talent, and they’re putting more effort into ways to engage. They’re thinking hard about the talent pipeline and how to make sure they keep the people they really need.”
Despite the headlines, the fundamental issue for many organizations hasn’t changed: how to secure the skills they will need in the years ahead.
Finding talent is one thing. Keeping it is another.
While hiring plans remain steady, retention continues to be a sticking point. According to the survey, just 34% of CHROs expect retention to improve, while 19% expect it to worsen, and nearly half expect it to stay the same.
Scott explained that top talent still has options, and organizations are under pressure to offer more than just compensation, with culture, flexibility, development, and purpose all playing an important role in whether employees stay.
“Good people are going to have options,” Scott said. “You have to be creative about how you show that your organization actually cares about them. It’s not just about the money anymore. You have to offer more than that.”
That shift is forcing companies to rethink what they offer employees and how they communicate value. The relationship is increasingly seen as a two-way exchange rather than a transactional one.
“They have to feel like they’re getting something out of it too,” Scott said. “You’re going to help them learn and grow, and you’re going to invest in them. It has to be a reciprocal arrangement.”
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At the same time, organizations are looking further ahead. Workforce planning is no longer just about filling immediate gaps. It is about building sustainable pipelines, particularly as demographic and technological shifts reshape the labor market.
Retirements are accelerating, and skill demands are evolving rapidly. Scott says AI isn’t replacing jobs at scale, but it is changing what skills are required and how work gets done.
“There’s an aging population, people are leaving the workforce, and there’s a skills gap,” Scott says. “As technology advances, there’s a need for new skills. CHROs are thinking about how they’re going to replace and find those skills for the future.”
That makes early-career hiring a critical piece of the strategy. Cutting back too aggressively at the entry level may solve short-term cost pressures, but it creates longer-term risk.
“I think it’s short-sighted to think you can just cut that entry-level workforce,” Scott says. “If you don’t build that pipeline now, how are you going to fill those roles later?”
Confidence is rising, but so are expectations. Organizations that invest in retention and take a longer view of their talent pipelines will be better positioned for what comes next. Those that don’t may find their talent pipeline running dry.
