US Administrative and Waste Management Services Sector NAICS 56

Nov 4, 2025 - Large US Firms Trim Ranks

• A softer labor market is prompting some large firms to reduce the size of their workforces, possibly signaling a decline in demand for employment services. Corporate America is shedding its pandemic-era “labor hoarding” strategy as companies like Amazon, UPS, Target, and Meta announce tens of thousands of layoffs amid a softening job market, according to The Wall Street Journal. Rising costs, tariff uncertainty, and investor pressure to boost margins are driving this shift, with AI optimism also playing a role. While previously reluctant to fire due to rehiring challenges, firms now feel less constrained, especially as unemployment rises and hiring becomes easier. The result is a return to 1990s-style workforce streamlining, with risks for broader employment if layoffs accelerate.
• China’s new regulation requiring recycled pulp importers to disclose dry or wet milling methods is shaking the market for old corrugated containers (OCC), according to Waste Dive. The policy targets dry-milled pulp, viewed as more contaminated, prompting price drops and production halts across Southeast Asia. US recyclers are bracing for inspection protocols and enforcement details, while wet-pulp mills report rising demand. The move echoes past Chinese import crackdowns, like National Sword, which disrupted global fiber flows and led to a surge in recycled pulp exports. With over 60% of China’s pulp imports previously dry-milled, the shift could raise raw material costs and deepen OCC market volatility. Analysts expect long-term impacts to hinge on enforcement, but many believe a full ban on dry pulping is likely. The recycling industry faces renewed uncertainty, with OCC’s price swings and structural imbalances intensifying.

• In September, the US office vacancy rate was 18.6%, down 80 basis points compared to a year earlier, according to an October report by real estate software firm Yardi Matrix. Remote work continues to put downward pressure on demand for office space, especially in central business districts. Two-thirds of companies provide some level of work-from-home or hybrid office attendance policy, according to flexible work data firm Flex Index. Low vacancy is also reducing property valuations. In the first nine months of 2025, office property sales averaged $195 per square foot. While that's a slight improvement over 2024, it's far below the average of $277 per square foot in 2019 before the pandemic. Weak office occupancy can put downward pressure on demand for several types of building services, including janitorial, facilities support, office administration, security, and landscaping.
• Tech recruiters and job seekers face a paradox: despite a surge in computer-science graduates and widespread layoffs, companies can’t fill highly prized AI roles, according to The Wall Street Journal. Recruiters are inundated with applicants—some postings draw 2,000 resumes per week, yet few possess the machine-learning mastery to tune complex models. Fierce competition has driven base salaries for AI engineers and managers into the high six figures, with top applicants commanding up to $1 million and recruiters willing to wait months for a single hire. Meanwhile, candidates with strong but non-AI backgrounds struggle to break in, as firms cling to unicorn profiles and overlook transferable talent. This hyper-specialization prolongs vacant listings and pressures recruiting teams to refine sourcing strategies, prioritize portfolio vetting, and advocate on-the-job training to expand the narrow AI talent pipeline.