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November 05, 2024

8 Potential Impacts of a Trump Administration on Recruiting


With the election results in, the question for Talent Acquisition leaders now becomes: “What impact will a second Trump administration have on the recruiting world?” We’ve identified key areas that may see significant change–from continued pushes to curtail DEI initiatives to open questions on hiring demand. As we move forward with the confirmation of a new Trump administration, it is vital to have the insights and strategic forecasts needed to navigate this period with confidence and clarity.

Below are eight areas of potential impact of a Trump administration on recruiting to inform your strategy, help you anticipate challenges, and seize opportunities as they emerge.

1. A Continued Push to Curtail DEI

One of Trump’s early policy goals is to cut DEI programs through executive order. Bolstered by a conservative majority on the Supreme Court, legal challenges to corporate and higher-ed DEI initiatives are expected to continue to proliferate during the second Trump administration. These include challenges to DEI training, race-conscious scholarships and fellowships, and programs aimed at increasing access to a corporate position.

2. Challenges to Immigration and International Talent

Trump promises to enact one of the largest deportation efforts in United States history. Legal pathways for immigration will also be impacted, with greater scrutiny on H-1B and other skilled-worker visas. This could exacerbate delays in hiring international candidates and limit the pool of highly skilled workers available in sectors like tech, finance, and engineering.

3. Open Questions on Hiring Demand

A Trump administration following through on promises to implement far-ranging tariffs or carry out mass deportations would likely increase inflation, slow the U.S. economy, and potentially damage hiring. The specific impact on hiring will impact industries differently; manufacturing could be especially hurt by tariffs, while investment and reduced regulations could produce a boom in hiring for industries such as aerospace and defense, or oil and gas.

4. Scrutiny on Higher Education

Trump has publicly called for the dissolution of the Department of Education and increased scrutiny of higher education. Two major trends we’re watching with regard to early talent pipeline diversity. First, it is an open question if HBCU funding will stay at the current level, and second is the impact of stricter immigration policies on international talent. During the last Trump administration, enrollment of international students fell by nearly 10%, cumulatively from 2017-2020 (pre-Covid).

5. Halting Student Loan Forgiveness

A Trump administration would likely curtail student loan forgiveness programs. This could result in fewer students, especially those from diverse backgrounds deciding to pursue higher education and reduce early talent pipeline diversity. However, shifts away from college enrollment could be a boon to trade schools, apprenticeships, and community colleges as early career talent consider alternative career paths.

6. Expanded Apprenticeship Programs for Employers

A Trump-led administration would likely revive or expand the Industry Recognized Apprenticeship Program (IRAP). This program has large potential benefits for employers via reduced government oversight and increased employer control, though it has also drawn criticism for potentially poorer program and candidate quality.

7. Preparing for Political Backlash

Recruiting teams should prepare for the possibility that the Trump administration acting on mass deportations or restrictions on reproductive rights could spark public backlash or campus protests. In this event, teams will need to plan for keeping recruiting teams safe on campus, and recruiters will need to prepare to field questions from potential hires on the company’s stance and values.

8. Reduced AI Oversight May Increase AI Use

Reduced focus on building regulatory oversight of AI could spur companies toward faster adoptions of AI tools which could further accelerate recruiting demand for AI talent as companies seek candidates skilled in cutting edge approaches to AI and machine learning. Limits on H1-B visas may accelerate the hiring frenzy for AI talent.

 

These eight trends are poised to shape the recruiting landscape. Our commitment is always to provide you with the information and support needed to drive effective and resilient recruiting strategies during this period of change. Ensure you’re subscribed to our newsletter to receive continued alerts on this issue and other top-line impacts on the Talent Acquisition space.

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