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

In 2026, the number of temporary employees is estimated to reach 2.8 million people, representing a 12.2% increase from the previous year and reflecting a rebound in the market for temporary labor. Falling interest rates and an expanding population are set to drive growth. Still, an expected increase in business bankruptcies and slowing economic growth are placing downward pressure on demand for temporary workers as companies limit discretionary expenditures and prioritize cost containment. This trend highlights the cyclical sensitivity of the temporary staffing market, which often mirrors broader economic conditions in real time.From 2021 to 2026, the number of temporary employees in the workforce has remained relatively flat overall, with a net change of -0.6%. This period was characterized by a sharp rebound in 2021, when temporary employment rose following a similarly sharp contraction caused by the pandemic in 2020. Growth continued in 2022, buoyed by economic reopening and increased business confidence. However, macroeconomic headwinds emerged in 2023 and persisted through 2025, with declines of 7.9% in 2023, 8.1% in 2024 and 4.1% in 2025. These declines corresponded with elevated interest rates, tighter financial conditions and a reduction in companies' use of outsourced labor, including temporary staffing services.Macro trends such as shifts in business confidence and monetary policy have played a decisive role in shaping demand for temporary workers over the past five years. The reduction in temporary staffing from 2023 to 2025 was particularly pronounced due to companies' efforts to manage costs amid uncertainty and higher financing costs. Structural factors, such as a continued—though recently interrupted—expansion of the gig economy, had supported the labor market share of temporary employees during periods of growth in 2021 and 2022. However, these were insufficient to counteract cyclical pressures in later years. Changes in employment practices toward more flexible staffing were evident but muted, as overall labor market volatility and fluctuations in business activity exerted more immediate influence.Over the five years to 2026, these patterns reinforce the role of temporary employment as a labor market buffer, expanding rapidly during periods of growth and contracting with heightened economic risk. The average percentage of temporary employees relative to total employment has edged up over the long term, but this proportion continues to fluctuate in response to the broader business cycle and macroeconomic environment.