The American Staffing Association reported that temporary and contract employment fell by 154,000 jobs between the final quarter of 2025 and the first three months of 2026. While this aligns with historical trends—where hiring typically cools before rebounding later in the year—the velocity of the decline has shifted. Year-over-year total staffing employment dropped by 4.6%, a significant improvement compared to the 10.8% contraction recorded during the same period in 2025.

Financial metrics echoed this trend. Staffing sales dipped to $27.6 billion, a 4.3% sequential decline, yet the 1.6% year-over-year gap stands as the narrowest margin since 2023. Stephen Dwyer, president and CEO of the association, noted that the data points toward stabilization. He emphasized that the industry is successfully bridging the gap for jobseekers during a period defined by historically low hiring volumes. Industry analysts now expect a return to year-over-year growth in subsequent quarters as the sector adjusts its position to meet client demand.