Temporary Employment Hits Seasonal Low as Staffing Industry Adjusts in 2025

The American Staffing Association has recently released data indicating a notable decline in temporary and contract employment across the United States during the first quarter of 2025. Staffing firms reported an average of nearly 2 million temporary and contract workers employed weekly, representing a decrease of 195,000 positions from the previous quarter, Q4 of 2024. This 9% decline is consistent with historical trends where temporary staffing typically decreases post-holiday, but the recent statistics also highlight a more complex picture regarding the labor market's overall health.

In historical context, the trend of decreasing contract and temporary employment at the beginning of the year is not new. The data indicates a usual seasonal contraction that, since 2008, has averaged about 8.2% from the fourth quarter to the first quarter of the following year. In the last quarter of 2024, the staffing employment saw a growth of 1.8%, demonstrating the cyclical nature of this sector where staffing peaks during the holiday season, followed by a sharp decline in the new year.

Year-over-year comparisons also show a slowing down of the decline, with jobs down 10.8% in Q1 2025 compared to a more significant reduction of 13.8% in the same period last year. Temporary and contract staffing sales mirrored this trend, totaling approximately $28.1 billion in Q1 2025, which is 8.8% lower than the previous quarter and down 10.8% when compared to Q1 2024.

Richard Wahlquist, the CEO of the American Staffing Association, commented on these trends by articulating that the post-holiday drop in demand for temporary and contract workers aligns with historical patterns. He emphasized that the nuanced reduction in employment figures and sales indicates that staffing agencies are actively adjusting to the new realities of a labor market that is characterized by sluggish churn rates. In other words, they are finding ways to improve productivity and offer innovative workforce solutions that address their clients' evolving demands amid a slow recovery.

The figures also reflect broader economic challenges faced by the country, as the staffing industry is a critical barometer of labor market dynamics. The seasonal instability showcases the industry's resilience and adaptability, as staffing firms are now tasked with creative strategies to meet client needs while navigating the current employment climate.

For detailed insights into the quarterly American Staffing Employment and Sales Survey, readers are encouraged to explore the American Staffing Association’s website at americanstaffing.net/quarterly-survey. This resource provides an in-depth look at the current trends affecting the staffing sector, along with data on employment and sales within the industry.

Founded in 1966, the American Staffing Association acts as the primary voice of the U.S. staffing, recruiting, and workforce solutions industry. The association seeks to support its members across various sectors through advocacy efforts, research initiatives, educational opportunities, and the maintenance of high professional standards. Overall, understanding these patterns in staffing employment not only highlights the cyclical nature of temporary roles but also points to the changing landscape of work in America as companies and workers alike adapt to new economic realities.

Topics General Business)

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