Staffing Stats

Contract Staffing Employment Update

Good news, the staffing industry continues to make steady progress in what has otherwise been a very tough year for the labor market. 

According to the American Staffing Association for the week of October 13-19 the staffing index grew 1.1% to a rounded value of 92, marking its sixth week of positive year-to-year growth.

That’s right folks, albeit small, six weeks of growth! The staffing index is reported nine days after each workweek, making it a near real-time measure of staffing employment trends.   

Lay Off Data

The October Challenger layoff report hit a record high (for the month of October) with 153,074 job cuts.  The technology industry and retailers lead the job cuts.

Recent data from Challenger, Gray, and Christmas shows only 4% of 2025 layoffs are attributed to Tech / AI, compared with 22% caused by adverse economic conditions.  
Click here for their full report  

GDP Projection

Higher tariffs and uncertainty continue to weigh on real GDP growth.  Consumers will bear the brunt of higher prices, likely through Q3 2026.

The conference Board US Economic Outlook, 2024 – 2027

q/q percentage change, seasonally adjusted annual rates (except where noted), updated as of October 16th, 2025

	2025	2025	2025	2025	2026	2026	2026	2026	2027	2027	2027	2027
	IQ	IIQ	III Q*	IV Q*	IQ	II Q*	III Q	IV Q	IQ	II Q	III Q	IV Q
Real GDP	-0.6	3.8	1.9	0.5	1.3	1.6	1.5	1.4	1.6	2.0	2.2	2.6
Real GDP (YoY)	2.0	2.1	1.7	1.4	1.9	1.3	1.2	1.4	1.5	1.6	1.8	2.1

Click here for The Conference Board’s full Forecast

Jobs Added

According to the October ADP employment report private employers added 42,000 jobs in October with biggest increases coming from the following industries:

• Trade, Transportation, and Utilities 
• Education and Health Services
• Financial Activities

Labor Force Participation

Labor force participation rate sits at 62.3%.  Other than April 2020 (during the Covid pandemic) when it dropped to 60.1, the last time it was this low was September of 1977.
FRED – full report

Talent scarcity is from a combination of a shrinking population and lower labor force participation.  

For staffing agencies, it reinforces the need to:

• Educate your clients on the new labor supply dynamics.
• Share how your agency is tapping into underrepresented or returning worker groups.
• Discuss creative sourcing and retention strategies that bring sidelined workers back into the labor market. 

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October U.S. Jobs Report: Key Insights for Staffing Leaders

1. Federal Shutdown Delays Official Data

2. Regional Employment Picture

• States with the most job openings:
  • California (757K)
  • Texas (554K)
  • New York (426K)
• Fastest-growing job markets:
  • Utah (+0.47%), Oregon (+0.35%), Wisconsin (+0.28%)
• Largest job losses:
  • New York (-16.1K), Illinois (-13.3K), Washington (-10.5K)

Sector note: Texas gains came largely from Leisure & Hospitality, Health Care, and Government, other sectors saw declines.

3. Temporary & Staffing Industry Signals

• SIA | Bullhorn Staffing Indicator:
  • Down 4% year-over-year, but trending upward in recent weeks.
  • Temporary staffing hours have reached new year-to-date peaks.
  • However, September’s data likely show a modest decline in temp employment (seasonally adjusted).

Takeaway: Employers remain cautious about permanent hires but are leaning on temporary and contract staffing to maintain flexibility.

4. Alternative Labor Market Indicators

• Chicago Fed Nowcast: Unemployment steady at 4.34%, signaling a stable labor market.
• ADP Employment Report:
  • Headline figure: -32K jobs (due to benchmark adjustments).
  • Adjusted figure: +11K net new private jobs.
  • Growth concentrated in Health Care, Education, and Natural Resources.
  • Declines in Leisure, Hospitality, and Professional Services.

Insight: The labor market is cooling but not contracting. Job creation remains narrowly concentrated.

5. Shutdown and Upcoming Data Anomalies

• Historical pattern: Shutdowns have minimal, short-lived economic effects.
• However, federal layoffs and project disruptions could impact some firms’ cash flow temporarily.
• Important: October’s employment data (released November 7) will include an artificial -150,000 decline, caused by federal employee buyouts, not true job losses.

6. What This Means for Staffing & Business Leaders

Focus sectors: Healthcare, education, and government-related services remain resilient.
Watch for: Delays in hiring decisions, longer fill times, and cautious spending patterns.
Opportunity: Businesses may turn to temporary staffing or outsourced solutions to stay agile amid uncertainty.
Next data to watch: November 7 BLS report, expected to show temporary distortion due to federal transitions.

Stay informed with Scale Funding, a leader in invoice factoring and staffing industry support since 1994. Our deep expertise helps staffing firms navigate changing market conditions, manage cash flow, and seize new growth opportunities. As labor trends evolve, Scale Funding keeps you up to date on the latest staffing news, employment data, and financial insights, so your business can stay agile, competitive, and ready for what’s next.