For UK recruitment agencies with US clients or those placing candidates in the US, potential changes in employment policy, diversity & inclusion (D&I) approaches, and business confidence present both challenges and opportunities.

The Trump administration has already started to roll back on D&I initiatives and is expected to focus on deregulation too. Some firms are scaling back official D&I commitments due to political pressure, while others continue to prioritise diverse hiring – just under a different name. For recruiters, this means navigating a complex landscape where public statements don’t always match private hiring strategies.

“So, statements [about D&I] are changing, but the behaviour of talent acquisition teams and HR teams remains pretty unchanged. They know a diverse workforce is good for business,” says Matt Cameron, CEO, LGBT Great.

Many US firms are removing references to D&I in financial reports – 400 of the S&P 500 firms have done so already. Executive orders and new government policies are forcing businesses with federal contracts worth billions of dollars to scale back public commitments to diversity or risk losing contracts.

However, the shift is more about language than substance. While terms like D&I are disappearing, organisations are still investing in hiring diverse candidates. Many companies now refer to these initiatives as talent community programmes, reflecting a more low-key but continued commitment.

“If you look at some of the financial statements of organisations, they will say one thing, but that’s not necessarily reflective of the behaviour within the organisation,” says Peter Healey, CEO, e-Financial careers. “D&I looks like it is being scrapped but it is being rebranded and repositioned. And for some recruiters that can be positive. Quotas will go for under-represented groups but there will still be a focus on diversity.”

Redefining D&I

Healey says organisations are unlikely to publicly share diversity targets, but they will continue to have soft targets. Cameron agrees. “Organisations are still going to want to support all of their people, because they want to reflect society as much as possible,” he says. “So, to do that, different communities need to be involved in different ways. Everybody wants to see an element of themselves inside an organisation. Do I think that organisations are going to stop engaging with diverse communities? No, because the social, ethical and business imperatives for doing D&I still remain incredibly strong, and that’s not going to go away.”

Cameron thinks organisations need to take a different approach to how they define D&I. “How we redefine D&I in the context of recruitment and this backlash is really important,” he says. “I think diversity has to link to performance and innovation, because we know that, as long as there is cohesion and psychological safety, businesses with workers with more diverse backgrounds and more diversity of thinking are much more likely to make better decisions, and are much more likely to innovate, and innovation is a driver of business.”

So, despite downplaying their D&I efforts publicly, US clients will still expect recruiters to provide diverse talent pools. And with less emphasis on quotas, there will be more focus on hiring the best talent from all backgrounds. Recruiters will need to navigate these conversations sensitively and understand the nuances to deliver diverse candidate pipelines.

The UK market is unlikely to see the same level of D&I rollback, but with many global firms taking cues from the US, recruiters should monitor how these trends influence hiring priorities in Europe. Cameron says UK recruiters need to do three things:

1. Leverage the richness and diversities of the communities and networks that they bring to organisations
2. Focus on assessment criteria, talk objectively about the process and ensure that it’s fair for everybody
3. Build relationships with internal talent attraction professionals so that you can be their eyes and ears in the marketplace – a lot of companies impacted by executive orders are not going to be able to be public about diversity.

In terms of offshoring, it will definitely be good for US staffing businesses, if and when President Trump makes it hard for US companies to move operations offshore

Changing regulations

Trump’s pro-business stance is another major factor that will shape recruitment trends. His administration has promised to cut red tape, reduce hiring restrictions and encourage job growth – moves that staffing agencies will generally welcome.

However, the regulatory landscape remains complex. US employment laws vary state by state, and while federal deregulation may make hiring easier, states like California, New York and Illinois are expected to maintain stricter rules on staffing agencies.

An example of this federal/state divide is President Trump’s initial attempts to slash the federal workforce. Nineteen Democrat-led states challenged the decision (see BBC News, 19 March 2025) and now federal agencies are looking to bring back nearly 25,000 workers who had been fired.

Kevin Barrow, partner, international law firm Osborne Clark, says the ease with which business is conducted from a regulatory perspective in the US will depend on where you do business.

“Trump is pro-business and pro-deregulation, which are good for business. But the thing to remember is, even if this is good for the US on a federal basis, the US is not one country. Democrat states will have strong regulation around staffing.”

Offshoring recruitment

Another major factor is offshoring. Trump’s economic policies aim to bring jobs back to the US, particularly in manufacturing and technology. This could increase demand for recruiters to source local talent in sectors that previously relied on outsourced labour. However, offshoring of recruitment services itself is unlikely to be affected, meaning UK agencies can still support US hiring remotely.

“In terms of offshoring, it will definitely be good for US staffing businesses, if and when President Trump makes it hard for US companies to move operations offshore. He’s technically trying to make it hard to offshore jobs or have jobs offshore, and bringing jobs back to the US will be a good moment for staffing and recruiting companies,” says Barrow.

He adds that offshoring recruitment services is unlikely to be affected by US legislation: “The good news for recruiters is that if they themselves want to offshore services, it doesn’t look like the legislation Trump is looking at will affect that. It’s all about manufacturing. So as a recruiter, you can operate from India, servicing the US markets, finding jobs for people whose jobs are going to move back to the US.”

In the short term, the deregulation of energy and AI will be good for business, whatever we may all feel about the impact on the planet and humanity, says Barrow.

His top tips for UK recruiters are to understand state-specific regulations as they will be crucial for those working in the US market; to be prepared for new opportunities created in industries affected by offshoring reversals; and to keep an eye on evolving employment laws to ensure compliance and mitigate risks.

Looking ahead…

Beyond policy changes, the economic climate under Trump is starting to affect recruitment decisions. Uncertainty around tariffs and trade policies are affecting business confidence, making some US firms cautious about hiring.

However, there are pockets of optimism. Some US firms are exploring international acquisitions to hedge against uncertainty, says Barrow, and the UK remains an attractive destination for investment.

So as a recruiter, you can operate from India, servicing the US markets, finding jobs for people whose jobs are going to move back to the US

And gender diversity remains a focus, especially in financial services, with firms under pressure to improve representation in senior roles. “US employers need to be more representative of the customers they serve,” says Healey.

Recruiters who can provide diverse candidate pipelines – even without explicit quotas – will remain valuable partners.

In the face of so much uncertainty in the US market, the panel urged UK recruiters to focus on understanding what US clients really need – which may not always align with what they say publicly.

When it comes to D&I, Cameron advises recruiters to:

• leverage community networks and demonstrate the depth of talent pools and the value of inclusive hiring
• focus on objective hiring processes that will reassure clients that are navigating D&I sensitivities and help them to understand how businesses are adapting to Trump-era regulations.

At the same time, the shift in US hiring laws could bring new opportunities. With many firms prioritising speed and efficiency in hiring, UK recruiters can offer:

• access to a diverse global talent pool, meeting hiring needs while navigating political sensitivities
• expertise in compliance and regulatory changes, helping firms adapt to state-by-state employment laws
• strategic recruitment support for firms looking to expand internationally or adapt to changing workforce needs.

For UK recruitment agencies, staying agile and informed is key. By understanding what firms need (even if they don’t say it publicly), positioning themselves as market intelligence experts and offering diverse talent pipelines, UK recruiters can seize opportunities amid uncertainty.

The US hiring landscape is shifting – but there will be many opportunities for those who can adapt to the shift.

Image credit | Gary Neill