American Staffing Association chief economist: The future of work is temporary, and that changes everything about the labor market

The American Staffing Association (ASA) chief economist foresees a future of work that is increasingly temporary, fundamentally altering the labor market. Despite the July Jobs Report highlighting a drop in overall nonfarm payroll employment, temporary help services have unexpectedly shown growth in 2026, adding the second-highest number of jobs among 300 industries analyzed by the Bureau of Labor Statistics.

This growth continued throughout July, with the sector adding 3,400 jobs. One in ten jobs created this year has been in temporary positions, with contract employment becoming a popular choice for young adults seeking an entry point into the workforce. Young job seekers find the flexibility of multiple assignments or additional full-time jobs appealing, while employers opt for project-based hiring to manage costs and uncertainties.

This shift in preferences is reshaping employment terms with a focus on autonomy and adaptability. However, this trend also brings risks, such as increased competition for headcount and the need for workers to manage transitions between contracts. Employers must compete aggressively for talent, while workers must be proactive in building long-term careers from each assignment.

Initiatives like microcredentialing programs, unemployment insurance, and portable benefits can help support this growing workforce during labor market downturns.