Staffing Employment Faced Seasonal Decline in First Quarter of 2025

Staffing Employment Decreased 9.0% From 4Q24 to 1Q25

ALEXANDRIA, Va., June 18, 2025 /PRNewswire/ -- U.S. staffing companies employed an average of just under 2.0 million temporary and contract workers per week in the first quarter of 2025, according to data released today by the American Staffing Association—down by 195,000 from the fourth quarter of 2024.

On a quarter-to-quarter basis, temporary and contract staffing employment and sales typically decline in the first quarter, grow in subsequent quarters, and peak in the fourth quarter.

That trend held true in the last quarter of 2024, as staffing employment grew 1.8% from 3Q2024 to 4Q2024. The contraction in the first quarter of 2025 is comparable to the average seasonal fourth-to-first quarter decline of 8.2% since 2008.

Year-to-year data also showed signs of a slowing decline. On a year-to-year basis, staffing jobs were down 10.8%, slightly better than the year-to-year drop seen last year at 13.8% in 1Q2024.

Temporary and contract staffing sales also declined as expected. Totaling $28.1 billion in the first quarter of 2025, staffing sales were down 8.8% from the fourth quarter of 2024 and 10.8% from the first quarter of 2024.

"The drop in demand for temporary and contract workers aligns with what we usually see after the holidays," said Richard Wahlquist, ASA chief executive officer. "Just like the broader economy, temporary and contract employment is being affected by a lack of churn in the labor market.

"However, the smaller declines in employment and sales suggest that staffing firms are adapting to the realities of an elongated recovery in labor market churn, seeking to bolster productivity, and delivering new workforce solutions to meet their clients' evolving labor needs," he said.

To learn more about the quarterly ASA Staffing Employment and Sales Survey, visit americanstaffing.net/quarterly-survey, or follow ASA research on Twitter.

About the American Staffing Association
The American Staffing Association is the voice of the U.S. staffing, recruiting, and workforce solutions industry. ASA and its state affiliates advance the interests of the industry across all sectors through advocacy, research, education, and the promotion of high standards of legal, ethical, and professional practices. For more information about ASA, visit americanstaffing.net.

Contact
Margaret Angevine
American Staffing Association
703-253-2043
[email protected]

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SOURCE American Staffing Association