Staffing Stats

Breaking Down the Latest Staffing and Hiring Trends

Contract Staffing Employment
According to the American Staffing Association, Staffing employment grew during the week of April 13–19, with the ASA Staffing Index increasing by 0.8% to a rounded value of 88. Staffing jobs were 5.3% higher compared with the same period last year, up from 3.6% recorded the previous week.

Looking ahead, staffing companies should expect only modest forward momentum as weak labor market fundamentals and uncertain business conditions dampen the pace at which staffing is able to grow. Despite this, the median estimate among staffing firms for their total sales growth for the full year of 2025 to full year 2026 is 5.0%. For comparison, the staffing industry recorded an 8.4% decline from full year 2024 to 2025.

What does this mean for your staffing agency?
Utilizing contract labor is a smart way for businesses to navigate the uncertain economy.  Use the Staffing Index data as a conversation starter. This is a near real-time indicator of hiring activity and sharing this information positions your firm as a labor market advisor.   

Lay Off Data

April Job Cuts

According to a report released Thursday May 7th from global outplacement and executive coaching firm Challenger, Gray, and Christmas, US based employers announced 83,387 job cuts in April, up 30% from the 60,620 job cuts recorded in March.  While job cuts were up month over month, the April numbers were DOWN 21% from the 105,441 cuts announced during the same month LAST YEAR.  

Which industry cut the most in April 2026?

Technology continues to lead the job cuts, announcing 33,361 cuts in March for a total of 85,411 so far in 2026. Tech companies state that $ for these roles are being spent on AI and innovation rather than headcount.

Click here for the full Challenger Report

What does this mean for your staffing agency?
Companies are shifting budgets toward AI investments at the expense of jobs.   The importance of upskilling and reskilling cannot be overstated.  Workers need to familiarize themselves with AI.  Additionally, many companies are now including goals for their employees on AI use.  They are redefining job descriptions based on what AI can do.   These are important discussions to have with both your clients and your candidates. 

Job Growth

According to the March ADP employment report key findings include:

• Job Growth: Added net +109,000 private sector jobs in April 2026. 
• Sector Highlights: Most of the new jobs this month came from Education/Health Services (+61,000) while the Trade/Transportation/Utilities sector added 25,000 jobs.
• Job Pay:  Median change in annual pay for job-stayers was 4.4% but the change in annual pay for job-changers was 6.6%. 

ADP’s Chief Economist Dr. Nela Richardson states “Small and large employers are hiring, but we’re seeing softness in the middle.   Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment.”

What does this mean for your staffing agency?
We’ve been in a low churn environment for many months, but ADP’s April report shows that Job change continues to be accompanied by a higher increase in pay rate.  6.6% vs. 4.4% for those staying in their current jobs. The continued pay premium for job-changers underscores the importance of actively engaging passive candidates and advising clients on competitive compensation positioning your agency as a strategic partner in both talent acquisition and retention.

Labor Data

According to TED: The Economics Daily dated May 6^th, unemployment rates are higher in 236 metro areas than a year earlier.  Click here for the interactive chart

What does this mean for your staffing agency? 
As unemployment rates rise across more metropolitan areas, staffing firms may begin to see a shift in both client hiring behavior and candidate availability.   A larger candidate pool creates an opportunity for staffing agencies to strengthen recruiting pipelines, improve talent quality, and deepen relationships with active and passive job seekers.