Noah Yosif, chief economist at the American Staffing Association, highlighted a notable rebound in temporary help services employment after the July jobs report from the U.S. Bureau of Labor Statistics showed a decline in overall non-farm payrolls.
Growth in temporary help services
Analysis of more than 300 industries revealed that temporary help services added the second-largest number of jobs in 2026, with steady monthly gains throughout the year, including 3,400 new positions in July. One in ten jobs created this year were temporary, underscoring a broader shift.
Why the shift matters
The surge is being driven by two converging trends. First, young workers are turning to contract roles as an entry point to the labour market. Data from the BLS in 2023 showed that adults under 24 were four times more likely than prime-age workers to hold contingent jobs, and a recent ASA-i360 survey indicated that 40 % of temporary workers in 2025 were aged 18-29.
Second, employers are increasingly favouring project-based hiring to curb costs and avoid over-staffing, a lesson learned from the Great Reshuffle. Sectors such as construction, transportation, professional services, healthcare and government are all seeing higher demand for temporary staff, not because they have suddenly embraced contract work, but because flexibility helps them adapt to volatile market conditions.
What happens next
The dual preference for flexibility is likely to reshape employment terms across the economy. Employers may need to compete more aggressively for talent, investing in culture and retention to maintain knowledge pipelines. Meanwhile, workers will have to take greater responsibility for building long-term careers from a series of short-term assignments.
Policy makers and industry groups are watching the trend closely. Initiatives such as micro-credentialing programmes, portable benefits and enhanced unemployment insurance could provide safety nets that smooth transitions between contracts and mitigate the impact of future downturns.
As the temporary sector continues to lead broader labour-market changes, the balance between stability and adaptability will define the next era of work in the United States.