According to data released today by the American Staffing Association, U.S. staffing companies employed an average of almost 2.2 million temporary and contract workers per week during the seacond quarter of 2024. This figure represents a decrease of 44,000 jobs from the first quarter of 2024, reflecting ongoing caution among clients regarding headcount additions due to current macroeconomic conditions.
Key Insights from Q2 2024
- Staffing Employment Trends:
- Staffing employment contracted by 2% from the first quarter and 11.6% year-over-year, indicating persistent challenges within the labor market.
- Sales Performance:
- Staffing sales totaled $31.0 billion in the second quarter, which is a 1.6% decline from the previous quarter and a 13.8% decrease compared to the same period last year. This contraction deviates from the typical seasonal trend of growth observed in the staffing industry during the second to fourth quarters.
- Future Expectations:
- Private staffing companies remain cautious about the upcoming quarters, anticipating a median revenue change of -0.4% year-over-year for the fourth quarter and a projected overall sales decline of 3.2% for the full year of 2024 compared to 2023.
Expert Commentary
Richard Wahlquist, ASA Chief Executive Officer, stated, “The cooling of labor markets continued to affect staffing employment and sales in the second quarter. However, there is reason for optimism over the next year, as lowering interest rates will give businesses the capacity to step up spending on capital expenditures as well as on their expenditures for permanent and flexible talent to increase hiring in the coming months.”
