Staffing Stats

The latest labor market data continues to send mixed signals, but there are some encouraging trends for the staffing industry. Staffing employment is up 4.2% year-over-year, July layoffs fell to their lowest monthly total in two years, and employer hiring announcements increased from both June and July of last year. At the same time, overall job creation remains sluggish, reinforcing a labor market where employers are hiring, but doing so selectively. For staffing agencies, this creates an opportunity to focus on the industries and employers where demand is beginning to strengthen.

Contract Staffing Employment

According to the American Staffing Association, week ending 7/26/26 the Staffing Index sits at a value of 89, with staffing jobs up 4.2% year-to-year. 

Lay Off Data

According to a report released August 6^th from global outplacement and executive coaching firm Challenger, Gray & Christmas, July layoffs fell to 33,429, down 27% from June.  This number is down 46% from the 62,075 layoff plans announced in the same month last year.  This marks the lowest monthly total in two years. 

Hiring Plans

Employers announced plans to hire 16,095 workers in July, up 47% from the 10,033 plans announced in June and well above the 3,200 announced in July 2025.

Aerospace/Defense and Automotive are leading industries announcing hires. 

Click here for the full Challenger Report

Jobs Added

According to the Bureau of Labor Statistics, the US economy unexpectedly lost 23,000 jobs in the month of July, rather than adding. This was led heavily by local government declines. Meanwhile, ADP reported that US private employers added 44,000 jobs. Why the difference? 

They each use different data sources, scope, and survey methodology. BLS calculates the data using government jobs while ADP tracks only private-sector businesses. The BLS uses actual payroll numbers to estimate total payroll, and they conduct heavy statistical modeling while ADP tracks a subset of its own clients aggregated and anonymized payrolls and weights the data to match the broader economy.   

Both reports missed the economist’s forecast of adding roughly 80,000-95,000 new jobs. 

Labor Data

According to TED – The Economics Daily dated July 2026, current key US Labor Data stats include:

• US Unemployment Rate: 4.1%
• Job Openings: 7.4 million
• Average Hourly Earnings: $37.60 per hour
• Remote Work: 22% – 35% of people work remotely (hybrid or full time)

Labor Force Participation

Labor force participation remains in the 61%-62% ranges

What This Means for Your Staffing Agency

The market isn’t booming, but the underlying data suggests there are pockets of opportunity for staffing firms willing to be proactive. With staffing employment improving, layoffs declining, and hiring announcements increasing, now is the time to identify where demand is building and get in front of clients before requisitions hit the broader market.

5 things staffing agency owners can do this month:

1. Target industries showing hiring momentum. Increase prospecting into Aerospace/Defense and Automotive, two industries currently leading announced hiring plans.
2. Reconnect with clients that slowed hiring. Use improving hiring-plan and layoff data as a reason to check in with dormant or slower accounts and ask what their workforce needs look like heading into fall.
3. Sell flexibility, not just candidates. With overall job growth still uncertain, position contract and temporary staffing as a way for employers to add talent without immediately committing to permanent headcount.
4. Mine your candidate database now. Re-engage qualified candidates in the skill sets your target clients are likely to need so you’re ready to move quickly when new orders arrive.
5. Get more specific with your business development. Instead of broad “are you hiring?” outreach, lead with labor-market trends relevant to a prospect’s industry and start conversations about where they expect hiring gaps, turnover, or project-based needs over the next 60–90 days.