Significant Changes in Temporary Employment Trends Observed
Staffing Employment Declines Slightly in the Third Quarter
Average weekly employment experienced a downturn of 1.8% in the third quarter. U.S. staffing companies employed around 2.1 million temporary and contract workers each week, marking a decrease of 38,000 jobs from the previous quarter.
Impact of Labor Market on Staffing
The latest findings highlight ongoing challenges in the staffing sector, primarily due to a cooling labor market. The average number of temporary and contract workers contracted by 1.8% compared to the preceding quarter and showed an 11.7% decrease year-over-year.
Continuous Decline
This marks the seventh consecutive quarter of decline in staffing employment. Temporary and contract staffing sales hit $30.7 billion during this period, which represents a 0.7% drop from the prior quarter and an 11.4% decrease from the same quarter last year.
Seasonal Trends Broken
Once again, this contraction deviates from the usual seasonal pattern of sequential growth in the staffing industry, which typically sees improvement from the second to fourth quarters.
Looking Ahead: Optimism for Growth
Despite the recent downturn, private staffing companies remain hopeful. They anticipate a median revenue increase of 5.0% year-over-year in the first quarter of the following year, with larger firms projecting a growth of around 2.0%.
Industry Insights
Chief Executive Officer Richard Wahlquist noted that businesses flourished after a post-pandemic hiring spree in 2021 and 2022. However, as uncertainty rose from various macroeconomic and geopolitical factors, many employers paused their hiring efforts, affecting overall staffing industry sales and employment.
Future Projections
Looking ahead, the staffing industry is gearing up for a rebound in 2025. The hope is that as conditions stabilize, we will see improved labor demand spreading across more sectors, not just a select few.
The Role of Staffing Companies
In the coming years, staffing companies will continue to play a pivotal role in matching employees with opportunities, helping to put Americans back to work and supporting the economy.
Frequently Asked Questions
What was the average number of temporary workers in Q3?
The average was approximately 2.1 million temporary and contract workers employed each week.
How much did temporary staffing sales total in Q3?
Temporary staffing sales totaled about $30.7 billion in the third quarter of the year.
What is the trend for staffing employment?
Staffing employment has seen declines for seven consecutive quarters, with recent data suggesting continuous challenges.
What are the expectations for the staffing industry in 2025?
Many staffing companies predict a return to growth as market conditions normalize, with increased labor demand expected across various sectors.
Who is the American Staffing Association?
The American Staffing Association represents the interests of the staffing, recruiting, and workforce solutions industry in the U.S. and promotes high standards across the sector.
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