August Jobs Report: Staffing Employment Declines While Broader Labor Market Holds Steady

Temporary staffing employment is showing signs of strain, even as broader employment continues to inch upward. According to the latest data from the U.S. Bureau of Labor Statistics (BLS), temporary help services employment declined by 0.4% in August—a loss of 9,800 jobs from July. This downturn adds to growing concerns about cooling demand for contingent labor across several sectors.

Key Takeaways from the August 2025 BLS Report

Temporary Help Employment Drops

• 9,800 fewer jobs in the temp sector from July to August
• Continues a trend of stagnation and slow declines in the staffing industry
• Reflects potential employer hesitancy around short-term hiring during economic uncertainty

“Hiring has slowed, not because people are losing jobs, but because fewer new roles are being created. Elevated costs and uncertainty are hitting temporary staffing first, a bellwether for broader hiring caution. Employers are waiting to see the Fed’s next move, but the smarter play is to act now: build flexible staffing strategies that balance short-term caution with long-term readiness.”, said Rodrigo Alcaine, CEO of Eastridge.

Total Nonfarm Employment Posts Modest Growth

• The U.S. economy added 22,000 nonfarm jobs in August
• Gains were led by healthcare, while the federal government and mining/quarrying/oil extraction sectors experienced declines
• Unemployment rate held steady at 4.3%, with 7.4 million unemployed workers—unchanged from July

Revisions to Previous Months

• June’s job gains were revised downward by 27,000 (now showing a loss of 13,000 jobs)
• July’s figures were revised upward by 6,000 (now showing 79,000 jobs added instead of 73,000)
• Combined, June and July employment was 21,000 lower than previously reported

What This Means for Employers and Job Seekers

While total job growth continues, the softening in temporary employment can serve as a leading indicator of broader economic caution. Employers may be pulling back on contract hiring, evaluating core staffing needs more conservatively, and adopting more strategic approaches to workforce planning.

At Eastridge, we encourage employers to:

• Focus on long-term talent strategies, not just short-term adjustments
• Leverage flexible staffing models to stay agile during unpredictable cycles
• Double down on retention and engagement, especially in high-turnover sectors like healthcare and logistics

For job seekers, this signals:

• Increased competition for temporary assignments
• A potential shift toward more permanent hiring strategies
• The importance of building in-demand skills and maintaining flexibility

How Eastridge Can Help

Our team of workforce experts helps companies navigate economic shifts with data-driven hiring strategies and robust temporary and direct placement solutions. Whether you're looking to scale with agility or stabilize your team, Eastridge provides the insights and talent connections you need to move forward confidently.

Get in touch with our team to learn how we can support your workforce goals in today’s evolving labor market.