Q3 2025 Professional and Human Capital Services Market Update

This document is a market update for the Professional and Human Capital Services sector for Q3 2025. It outlines recent trends, financial performance, and mergers and acquisitions (M&A) activity within the industry. The report notes a slowdown in employment growth, with a significant drop in job additions compared to previous years and a slight increase in the unemployment rate. Despite these challenges, M&A activity in the sector grew by 4% year-over-year, contrasting with a broader market decline. Key themes driving M&A activity include high-demand skill areas, growth in the gig economy, and the need for re-skilling due to AI integration. The document further details financial performance metrics across various subsectors, highlighting declines in staffing services and specialty consulting, while HR technology services experienced growth. The report concludes with insights into transaction activity and the performance of specific companies in the sector.