FACTORING BLOG

Staffing Stats

Staffing Trends to Watch This Spring

Contract Staffing Employment
According to the American Staffing Association (ASA), the staffing index increased in February from 81 week-ending 1/25 to 85 week-ending 2/22. The staffing index is reported 9 days after each workweek, making it a near-real-time measure of staffing employment trends.

“Despite some disruptions due to inclement weather, staffing employment has maintained a steady incline since the start of 2026,” said Noah Yosif, chief economist at ASA. “Though more robust momentum depends on greater churn in the labor market at large, an uptick in weekly headcount suggests employers are able to hire but prefer to lean on temporary staff instead of making long-term personnel investments via permanent roles.”

What does this mean for your staffing agency?
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

Layoffs Plunge 55% to 48,307 in February
These job cuts, down from 108,435 in January, are also down 72% from the 172,017 announced in February of last year. This was according to a report released Thursday, March 5th, from global outplacement and executive coaching firm Challenger, Gray & Christmas.

The Technology industry is leading the way, announcing 11,039 job cuts in February, bringing the total to 33,330 in 2026.

Click here for the full Challenger Report

What does this mean for your staffing agency?
Organizations that completed layoffs often experience capacity gaps once demand stabilizes. Staffing firms can reach out to these companies with temporary staffing solutions that allow them to get the work done and cautiously ramp back up without adding permanent headcount.

Job Growth

According to the February ADP employment report, key findings include:

Job Growth: +63,000 private sector jobs in February 2026.
Sector Highlights: Most of the new jobs this month came from the health and education services industries.
Company Size: Small companies with 1-19 employees added most of the jobs this month, while mid-sized companies (50-499 employees) showed a decrease in new jobs.

What does this mean for your staffing agency?
Focus your business development on the growing sectors such as health and education services. Additionally, since small companies with 1-19 employees are driving most of the hiring, position your staffing agency as a recruiting partner for small businesses that lack internal recruiting resources.

Average Hourly Earnings

The Bureau of Labor Statistics reports that real average hourly earnings increased 1.4% from February 2025 to February 2026.

What does this mean for your staffing agency?
Even modest wage increases can influence candidate expectations and your ability to fill an order. Agencies that track compensation trends and advise clients on market-competitive pay rates will attract talent faster and reduce time-to-fill.

Labor Data

According to TED: The Economics Daily, dated March 13th, over half of the workforce (54.6%) has less education than a Bachelor’s degree.

What does this mean for your staffing agency?
Many employers still list degrees as default job requirements. Staffing agencies can help clients rethink educational requirements and focus on skills instead, opening access to a much larger talent pool.