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Staffing Employment Trends in Q3 2025

In the third quarter of 2025, the American Staffing Association (ASA) reported positive developments in the staffing employment sector. According to their quarterly Staffing Employment and Sales Survey, staffing companies in the United States employed nearly 2 million temporary and contract workers per week, marking an increase of 6,400 workers when compared to the previous quarter.

Yearly Comparisons and Trends

The ASA's data reveals a narrowing gap in year-to-year staffing employment figures, with a decline of only 7.5% in Q3, improved from the 9.4% drop seen in the second quarter. This improvement signals a gradual recovery in what has been a tumultuous labor market. Notably, the ASA Staffing Index also indicates a positive trend, showing 14 weeks of growth in staffing employment compared to the same weeks in the previous year, starting from September 12.

Typically, staffing employment experiences fluctuations throughout the year, often declining in the first quarter, followed by growth in subsequent quarters. As expected, the peak usually occurs in the fourth quarter. In this context, the slight uptick of 0.3% in staffing employment from the second quarter aligns with these historical trends. However, it is crucial to note that while employment numbers have risen, staffing sales have taken a hit, declining by 1.3% during the same period.

Economic Factors Influencing Staffing Sales

These dynamics illustrate the broader challenges faced by the staffing industry. High borrowing costs, rising labor expenses, and increased tariffs have led to thinner profit margins for staffing companies. This economic pressure has made it difficult for businesses to maintain robust revenue growth, which was reflected in total staffing sales of $28.1 billion for the third quarter of 2025. This figure represents an 8.5% decrease compared to the same quarter in 2024, showing a slight deterioration from the 8.0% year-to-year decline reported in Q2.

Stephen Dwyer, President of ASA, commented on these findings, stating, "The third quarter showed signs of recovery for staffing employment, even as sales remained soft. Although staffing hiring may be stabilizing, thin profit margins and fiercer competition are keeping revenue growth constrained." This assertion underscores the importance of monitoring both employment and sales figures to gauge the overall health of the staffing sector.

Looking Ahead

As we move forward, the staffing industry will need to navigate these choppy waters carefully. Monitoring economic indicators such as labor costs and interest rates will be crucial for staffing firms aiming to optimize their operations and competitiveness in the market. While the recent growth in employment is encouraging, the industry must address sales challenges to foster long-term recovery.

For those interested in a more detailed exploration of the IPA Staffing Employment and Sales Survey, additional information is available at americanstaffing.net/quarterly-survey.

About the American Staffing Association

The American Staffing Association advocates for the staffing, recruiting, and workforce solutions sector in the United States. They work to promote high standards of ethical and professional practices through research, education, and active advocacy at local and national levels. More details can be found on their official website americanstaffing.net.