Laid Off? Why Starting Your Own Recruiting Business Might Be the Best Move Yet


If you’ve been laid off not once, but two or even three times in the past few years, you’re not alone—and you’re probably exhausted. The emotional rollercoaster, financial stress, and constant uncertainty of job hunting can feel like too much. But what if your next layoff wasn’t just a setback… but the spark to start your own recruiting business?

Let’s talk about why now, in 2025, might be the perfect time to shift gears and take control of your career—for good.

The Job Market in 2025: A Slippery Slope

The U.S. labor market is cooling. In July 2025, unemployment ticked up to 4.2%, and job creation slowed to just 115,000 new roles, down from earlier in the year. Vacancies are shrinking (from 7.7M to 7.4M), and the once-hot hiring spree is showing signs of frost.

Despite relatively low initial jobless claims (~218,000 per week), massive federal layoffs—over 300,000 roles slashed this year—are creating waves. Sectors like tech, retail, and even nonprofits are trimming staff due to automation, AI, budget cuts, and structural flattening.

If you’ve been hit by multiple layoffs, it’s not your fault. It’s the system.

Why People Are Being Laid Off Repeatedly

The causes behind recurring layoffs are complex:

  • Federal austerity programs (DOGE) have gutted thousands of jobs in agencies like the IRS, USDA, and VA.
  • Tech firms cut ~89,000 jobs in early 2025 alone due to AI-driven automation and budget tightening.
  • Retail and nonprofit sectors are collapsing under declining consumer demand and reduced government funding.
  • Structural flattening is eliminating middle management, clogging up lower-tier roles.

In short, workers are being squeezed out from both ends of the corporate funnel.

The Personal Cost of Repeated Layoffs

Every layoff takes a toll. According to Harvard Business Review, being laid off during a downturn can reduce your future annual income by $17,000 or more. After a second or third layoff, many professionals report:

  • Persistent financial anxiety
  • Loss of self-confidence
  • Growing skepticism toward traditional employment

And while most people try to re-enter the workforce, the process can be soul-crushing: no responses, intense competition, and “ghosting” by recruiters who are themselves being let go.

A Better Path: Start Your Own Recruiting Business

Here’s the truth: if you’ve worked in hiring, HR, tech, or even operations, you’re already more equipped than you think to start a recruiting business—and the timing couldn’t be better.

Why Recruiting?

Low Startup Costs – No inventory. Just a laptop, a LinkedIn profile, and maybe a Zoom subscription.

Service-Based Model – You get paid per hire (contingency) or through monthly retainers, which means predictable income with no overhead.

Remote-Friendly & Scalable – Work from anywhere. Hire contractors or scale when ready. No warehouse or storefront needed.

Real Market Need – When companies cut internal recruiting teams, they often outsource hiring to boutique firms or freelance recruiters. Your experience is your selling point.

You Understand the Layoff Cycle – Having lived through multiple layoffs gives you unmatched empathy and credibility with both clients and candidates.

Real Stories: From Laid Off to Recruiting CEO

You’re not the only one thinking of breaking free.

  • A former recruiter laid off twice (from Sendoso and Atlassian) launched her own firm in 2024. She now fills mid-level tech roles using her former contacts—and makes more than she did in-house.
  • Laura McDonough, let go during the pandemic, started a solo recruiting consultancy. She now works 9am–2pm, enjoys better work-life balance, and earns more.

These aren’t unicorn stories—they’re increasingly common.

The Opportunity Hiding in Plain Sight

So far in 2025, there have been over 806,000 job cuts—the highest since COVID-19. That’s not just bad news. It’s an untapped recruiting market.

Each person laid off is:

  1. A candidate looking for a new role.
  2. A potential client if they land in a leadership position.
  3. A future referral source or partner.

Plus, companies are more open than ever to hiring external recruiters on a flexible, contract basis—especially when rebuilding after internal cuts.

Bottom Line: Turn the Tables on Layoffs

Let’s be real: the market isn’t getting any more stable. The “Great Flattening” is eliminating middle managers. AI is replacing admin roles. And layoffs are becoming a norm, not an exception.

But for those willing to pivot, this instability also means opportunity.

Starting your own recruiting business gives you:

  • Control over your time and income
  • The ability to use your network instead of starting from scratch
  • A meaningful role in helping others navigate the chaos you’ve survived

You’ve been laid off more than once—but that doesn’t mean you’re done. It means it might be time to start your own recruiting business.

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