• by Maarten Albarda , Featured Contributor, February 13, 2026

Welcome to the first Friday the 13^th of 2026. Let’s talk about the economy because that seems like a cheerful subject for such an ominous date.

There continues to be a lot of debate about the state of the U.S. economy (and with it, the global economy). Are the tariffs hurting or helping? Is the big, beautiful bill delivering big and beautiful results? Is the economy growing, stalling, or nose-diving?

It appears that all these statements could be true. The problem is that, as is the case with so many datasets and reports, the truth is no longer a fixed, aligned conclusion, but a flexible, “eye-of-the-beholder” assessment.

This week, it was reported that according to updated 2025 numbers, the U.S. economy gained only 181,000 jobs for the entirety of 2025, revised down from the earlier reported 584,000 jobs. This is the slowest pace of job growth outside a recession since 2003.

Now let’s look at agency employment. In the U.S., total advertising and PR jobs are hovering around 495,000, which is down from the post-pandemic peak of 502,900 from 2023. Not growing, not falling off a cliff (yet). Per the 4A’s, it’s getting harder to keep people "busy" on agency client income. Over 52% of agencies are struggling to hit a 50% billable utilization rate. That means that half of most agency team’s time isn’t being paid for by a client. Roughly 70% of agency leaders admit that their current business model and organizational structure won't survive the next 24 months.

The U.K.’s IPA, the equivalent of the 4A’s, reported its 2025 IPA Agency Census, and here, too, we are seeing a slight dip in overall employment numbers (about 2.4%), but the real issue is the shift in who has left: it is the middle, the layer of practitioners who actually know how to get things done. Add to that the diminished instream of entry-level practitioners because “AI can do their job” (which is very much not true yet), and you can see the crisis in full bloom.

The parallels to the U.S. market are impossible to ignore. On Madison Avenue, we’re seeing the same "efficiency" obsession. Agencies are consolidating like crazy and touting the benefits of AI to mask the fact that the traditional billable hour model is running out of air and people utilization is slipping.

In the U.S., we’re also seeing a massive surge in the "fractional" economy. The IPA notes a rise in freelancers, but in the U.S., it’s a full-blown revolution. Clients are realizing they don't need a 200-person agency on an expensive monthly retainer; they need three brilliant "grown-ups" who can operate as an extension of their team.

So, what’s the pragmatic solution?

If you’re a client, look at your agency’s roster. Demand a flatter structure. If you’re an agency, pivot your mid-level talent into specialist roles. Stop trying to hire every skill set full-time. The data shows the freelance shift is real; use high-end consultants for strategy and keep your core team lean for execution.

The IPA report shows an industry that is desperately trying to find its place in a world that only wants to pay for "results." If you’re running an agency or managing a marketing org, you can’t just wait for the "market to return." It’s not coming back the way it was. Time to pivot, and pivot quickly.