Staffing Stats

The latest labor market data continues to send mixed but increasingly encouraging signals for the staffing industry. Contract staffing employment is showing solid year-over-year growth and announced layoffs declined, but slower overall job creation and cautious hiring plans suggest employers are still being selective about when and where they add talent.

Contract Staffing Employment

According to the American Staffing Association, the Staffing Index increased to a value of 95, with staffing jobs up 5.4% year-to-year, averaged over the four weeks ending 9/20/2026. 

The staffing index tracks weekly changes in temporary and contract employment.  It is reported nine days after each workweek, making it a near real-time measure of staffing employment trends.  

Lay Off Data

According to a report released Oct 1^st from global outplacement and executive coaching firm Challenger, Gray & Christmas, US based employers announced 43,281 job cuts in September, down 18% from the 52,881 cuts announced in August.  This number is also down 20% from the 54,064 layoff plans announced the same month last year. 

“Companies are in a wait-and-see period right now.  Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs.  We’ve seen layoff activity subside over this year, and September continues to illustrate this point”, said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas. 

Hiring Plans

Employers announced plans to hire 90,787 workers in September, up from the 12,325 plans announced in August, however, it’s down 23% from the 117,325 announced in September of 2025.

Announced seasonal hiring is muted so far this year with Spirit Halloween and Michaels being the only Retailers who have announced hiring plans.

Retail, Aerospace/Defense, and Utility are the industries leading all hiring in September.

Click here for the full Challenger Report

Jobs Added

According to the Bureau of Labor Statistics, the US economy added only 29,000 jobs in the month of September.  Meanwhile, ADP reported that US private employers added 90,000 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.   

Labor Data

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

• US Unemployment Rate: ticked up to 4.2% from 4.1% in August
• Job Openings: 7.08 million
• Wage Growth: Average hourly earnings rose by only 0.1%  ( 5 cents) over the month and 3% over the year. 
• Hires: Total hires held steady at 5.2 million   

Labor Force Participation

Labor force participation rose slightly to 61.8% from 61.6% and is still well below its all-time peak of 67.3% in January 2000.   Over the last 2 decades there has been structural decline due to demographic shifts.  

What This Means for Your Staffing Agency

The rise in the Staffing Index to 95, along with 5.4% year-over-year growth in staffing employment, is a positive sign that demand for flexible labor continues to strengthen. At the same time, modest overall job growth, relatively flat hiring levels, and muted seasonal hiring reinforce that this is not yet a broad-based hiring boom. For staffing agencies, growth opportunities are there, but identifying the right industries, clients, and pockets of demand remains especially important.

5 things staffing agency owners can do this month:

1. Revisit clients that reduced temporary headcount. With staffing employment up 5.4% year over year, now is a good time to reconnect with clients that pulled back earlier and ask what their workforce needs look like heading into year-end and 2027.
2. Focus business development on industries showing hiring activity. Retail, Aerospace/Defense, and Utilities led announced hiring in September. Review your prospect list and identify companies in growing industries where your recruiting capabilities could translate into new business.
3. Don’t rely solely on the traditional seasonal hiring surge. Seasonal hiring announcements have been muted so far. If holiday hiring is an important part of your business, talk with clients now about their plans rather than assuming historical volumes will return.
4. Sell flexibility in an uncertain market. Employers may still be hesitant to commit to permanent headcount. Position contract and temporary staffing as a way for clients to add talent and respond to changing demand without making the same long-term commitment.
5. Look beyond the national employment headlines. National statistics don’t tell the entire story. Pay closer attention to hiring trends in the industries and geographic markets you serve and use what you’re hearing directly from clients and candidates as another source of market intelligence.