US Administrative and Waste Management Services Sector NAICS 56

Jan 6, 2026 - Dim Outlook for Corporate Hiring in 2026

• A downturn in hiring could reduce demand for several types of administrative services. Companies are preparing for minimal hiring growth in 2026 as economic uncertainty, post pandemic overexpansion corrections, and rising reliance on artificial intelligence push employers to stay lean, according to The Wall Street Journal. At a recent Yale School of Management gathering, 66% of CEOs surveyed said they expect to either cut staff or hold head counts flat. White collar layoffs at Amazon, Verizon, Target, and UPS, along with a 4.6% unemployment rate, signal a cooling labor market, while voluntary attrition has plunged, reducing the need to hire. Weakness persists in fields such as software development, data analytics, and marketing, even as healthcare and construction show stronger demand.
• Hiring managers are entering 2026 with strong optimism and ambitious staffing plans, even as skill gaps and talent shortages persist, according to a new Express Employment Professionals–Harris Poll survey. The report found that 85% of hiring managers hold a positive outlook, and 66% expect to increase headcount in early 2026, the highest level since the study began in 2020. Employers are hiring to support growth, market expansion, and new skill needs, and many are turning to contingent workers, recent graduates, and retirees to fill roles. Automation and AI are shaping workforce strategies, with some companies reducing staff or leaving vacancies unfilled. Despite easing compensation barriers, 36% of hiring managers still struggle to fill open jobs due to insufficient experience and difficulty assessing informal skills. Looking ahead, most expect challenges tied to AI complexities, talent shortages, and rising competition.

• Waste and recycling operators face rising fire risks as lithium-ion batteries from electronics and disposable vapes continue to enter waste streams, according to consultant Ryan Fogelman, as reported by Resource Recycling. His data show facility fires in the US and Canada have sharply increased in recent years, with vapes a major contributor. Fogelman argues bans on single-use vapes are ineffective, urging tobacco and vaping companies to fund battery collection through extended producer responsibility programs. He highlights the hazards of vapes, which combine biohazard, chemical, and battery risks, and calls for design changes requiring removable batteries. Fires linked to discarded batteries are costing the industry about $2.5 billion annually, alongside risks to workers and communities. Fogelman warns that without better design, infrastructure, and manufacturer accountability, the “vape effect” will continue to escalate.
• The US office market’s recovery remains uneven amid high vacancy rates and declining property values in some markets, according to The Wall Street Journal. While districts like New York’s Park Avenue and San Francisco’s South of Market show signs of strength, most markets struggle with empty space due to structural shifts from remote and hybrid work. Companies are downsizing footprints, leaving landlords, lenders, and local governments under pressure as office-related tax collections fall. Some investors remain cautious, with office property sales far below pre-pandemic levels, though conversions to housing and limited new supply are tightening prime space in select areas. With AI-driven job cuts adding uncertainty, analysts warn the slump may not mirror past cycles, raising questions about the long-term viability of traditional office demand. Weak office occupancy can put downward pressure on demand for several types of building services, including janitorial, facilities support, office administration, security, and landscaping.