Number of temporary employees in the US - Data and Analysis (1990-2032)

In 2026, the number of temporary employees is estimated to reach 2.5 million people, representing a 0.3% increase from the previous year and reflecting a rebound in the market for temporary labor. Temporary help employment has posted consecutive monthly gains through most of the year, as employers wary of committing to permanent hires have turned to contingent labor to meet demand. Staffing firms also reported a much smaller seasonal decline in the first quarter than in recent years, signaling that the market has begun to stabilize. However, the recovery remains fragile. An oil price shock tied to the conflict with Iran and elevated tariffs have lifted costs for manufacturers and logistics firms, two of the largest users of temporary workers. The Federal Reserve's rate hike in September will raise borrowing costs, likely prompting businesses to keep a tight lid on discretionary labor spending for the rest of the year.From 2021 to 2026, the number of temporary employees in the workforce has remained relatively flat overall, with a net change of -0.6%. The number of temporary employees has fallen over the five years through 2026. Temporary staffing surged in 2021 and early 2022 as the economy reopened from the pandemic. Businesses faced acute worker shortages and turned to staffing agencies to fill roles quickly, particularly in warehousing, manufacturing and healthcare. Booming e-commerce sales and supply chain disruptions further lifted demand for flexible labor.This momentum reversed from mid-2022. The Federal Reserve raised interest rates aggressively to curb inflation, tightening financial conditions and cooling demand for goods. Temporary workers are typically the first to be cut when activity slows, since employers can reduce contingent headcount quickly and without severance costs. A tight labor market also encouraged many companies to convert temporary staff into permanent employees to retain them, shrinking the temporary workforce. Declines persisted through 2023 and 2024 as manufacturing activity weakened and freight volumes softened.Pressure continued into 2025. Sweeping tariffs created uncertainty for manufacturers and retailers, leading many to delay hiring decisions and trim contingent labor. At the same time, businesses increasingly adopted automation and AI tools for administrative and clerical tasks, reducing demand for some office-based temporary roles. As a result, temporary workers now account for a noticeably smaller share of total employment than they did at the start of the period.