Business Environment Profiles - United States
Published: 11 February 2025
Number of temporary employees
2 Million people
0.0 %
The temporary help average daily employment represents the number of temporary employees. The annual figures presented in this report are the equally weighted averages of these quarterly means. Data is sourced from the Federal Reserve Bank of St. Louis.
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During periods of economic growth, such as the late 1990s and the mid-2010s, both total employment and temporary employment increased. Conversely, during recessions, like in 2001 and 2008-2009, temporary employment declined sharply, often at a faster rate than total employment. This pattern underscores the role of temporary workers as a flexible workforce buffer, allowing companies to quickly adjust their staffing levels in response to changing economic conditions.
The percentage of temporary employees relative to total employment has generally trended upward over the past three decades, from around 1.1% in 1990 to 2.0% in recent years. This long-term increase reflects structural changes in the labor market, including the rise of the gig economy and changing business practices that favor more flexible staffing models. However, the data also shows fluctuations in this percentage, particularly during economic downturns, indicating that while temporary employment has become more prevalent, it remains sensitive to economic cycles and business confidence.
Since 2023, the proportion of temporary employees has declined as rising interest rates have led companies to reduce certain costs, including outsourced services. The predicted increase in business bankruptcies in 2025, coupled with persistently high interest rates even with some reductions, is expected to negatively affect temporary employees that year.
The number of temporary employees is expected to grow over the next five years due to several fac...
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