Recession fears push employers to cut costs and cross-train

With most U.S. hiring managers bracing for a recession, many businesses are already scaling back hiring, cutting expenses and reshaping long-term plans to prepare for a potential downturn, according to a new survey.

The Express Employment Professionals–Harris Poll survey, conducted this past June, found that 80% of hiring managers expect a recession, and nearly half think it will arrive within the next year.

Ninety-four percent of respondents said a recession would affect their organization, and 60% anticipated a major or moderate impact. More than a third of companies, 36%, said they might not survive a recession this year. That figure rises to 57% among blue-collar employers.

Still, some employers remain optimistic. Seventy-eight percent said they believe their company will be in a better economic position by the end of 2025, and 58% see a recession as more of a growth opportunity than a threat.

The possibility of a downturn is already influencing hiring strategies. More than one-third of businesses, 35%, said they would reduce hiring in the event of a recession, up from 30% in the spring of 2022. Another 17% said they would freeze hiring altogether.

In anticipation, 83% of employers reported taking proactive steps, including cutting unnecessary expenses (45%), streamlining processes (29%), cross-training employees (26%), not filling vacated roles (23%) and conducting layoffs (19%).

The Congressional Budget Office projects that a moderate recession could increase unemployment from 4.2% to as high as 7.5%, which could mean as many as 5 million job losses.

Recession planning is also affecting strategy. Sixty-one percent of employers said preparations have taken time away from improving their organization’s long-term future. Fifty-seven percent said they have already overhauled strategic plans this year, including 65% of blue-collar employers and 54% of white-collar employers.

Hiring managers pointed to several measures that could help them navigate a downturn, including training and upskilling programs (60%), flexible staffing solutions (39%) and clearer communication from leadership (33%).

“The most resilient companies don’t just react to economic shifts; they use them as catalysts to become more efficient,” said Bob Funk Jr., CEO, president and chairman of Express Employment International. “By streamlining operations and investing in versatile talent, businesses can position themselves for long-term success in any environment.”

The Job Insights survey was conducted online in the United States by The Harris Poll on behalf of Express Employment Professionals from June 2 to 28, 2025, among 1,000 U.S. hiring decision-makers.