U.S. Staffing Employment Sees Slight Decline in Third Quarter 2024

In a recent report by the American Staffing Association, it was revealed that the average number of temporary and contract workers employed by U.S. staffing firms slipped to 2.1 million per week during the third quarter of 2024. This represents a decrease of 38,000 jobs when compared to the previous quarter, highlighting the ongoing challenges faced by the staffing industry amidst a cooling labor market.

Overall, data indicates a contraction of 1.8% in staffing employment from the second quarter. Over a year’s span, the decline is even more pronounced, with numbers falling by 11.7%. Notably, this marks the seventh consecutive quarter of decline within the sector, contributing to a perplexing narrative for an industry typically characterized by stable growth.

Financially, the temporary and contract staffing sales amounted to $30.7 billion, reflecting a slight decrease of 0.7% from the earlier quarter and an 11.4% reduction year-on-year. These results defy the usual seasonal expectations of growth during this period, which typically sees an increase in staffing activities as businesses ramp up hiring for various projects.

Richard Wahlquist, the CEO of the American Staffing Association, commented on the implications of these findings. He noted that after a robust post-pandemic hiring spree in 2021 and 2022, many businesses found themselves overstaffed as they built up talent reserves. In light of the macroeconomic and geopolitical uncertainties currently pervading the landscape, many employers have curtailed their hiring, causing a ripple effect on staffing industry sales and employment figures.

Looking ahead, there is cautious optimism in the staffing sector. Private staffing firms anticipate a revenue growth of a median rate of 5.0% year-on-year in the first quarter of 2025. Larger companies, specifically those with annual sales exceeding $100 million, are projecting more modest growth figures, estimating a median increase of 2.0%. This signals a potential turnaround as businesses begin to rebuild and replenish their workforces, aiming for a return to stable operations as economic conditions normalize.

The American Staffing Association remains committed to its role in advocating for the interests of the staffing industry, promoting ethical practices, and supporting research and education initiatives. As the sector navigates through this challenging period, its efforts to align workforce solutions with evolving economic conditions become even more critical.

In conclusion, while the third quarter of 2024 presented challenges for the U.S. staffing industry, key indicators suggest that a resurgence in labor market demand could reignite growth going forward. The commitment to placing Americans in productive roles continues to be a driving force for staffing companies across the nation as they prepare for the anticipated shifts in the labor landscape. For continuous updates and insights regarding staffing employment trends, stakeholders can refer to the quarterly ASA Staffing Employment and Sales Survey.

For more details on this topic, explore the resources available at American Staffing Association.