The number of temporary help services jobs in the US rose by 25,900 in January, according to seasonally adjusted data released today by the US Bureau of Labor Statistics. The increase is a rebound from losses of 40,900 such jobs in December and 48,500 in November.

Temp jobs totaled 3.08 million in January, and the temporary penetration rate — temp jobs as a percent of total employment — increased to 1.98% in January from a revised rate of 1.97% in December.

In addition, total nonfarm jobs rose by 517,000, compared with an average monthly gain of 401,000 in 2022. Total nonfarm employment in the US was almost 155.1 million in January.

Looking at total employment, job growth was widespread, led by gains in leisure and hospitality, up 128,000 jobs in January; professional and business services, up by 82,000 jobs; and healthcare, up by 58,000 jobs. Employment also increased in government, partially reflecting the return of workers from a strike.

Employment showed little change over the month in other major industries including mining, quarrying, and oil and gas extraction; wholesale trade; information; financial activities; and other services.

The bureau also reported the US unemployment rate edged downward to 3.4% in January from 3.5 in December; it has been in a narrow range of 3.5% to 3.7% since March 2022. However, the college-level unemployment rate edged upward to 2.0% in January from 1.9% in the previous month.

In December, average hourly earnings for all employees on private nonfarm payrolls rose by 19 cents, or 0.3%, to $33.03. Over the past 12 months, average hourly earnings have increased by 4.4%.

“Despite current predictions that the US is on the cusp of a recession, we remain in one of the tightest labor markets in history,” said Nicola Hancock, managing director – Americas Region at AMS, a global provider of talent acquisition outsourcing and advisory services. “Companies haven’t been able to fill their skills gaps in years, so while some sectors have slowed down, companies are still desperately seeking to acquire certain skill sets.”

Hancock continued, “Tech skills such as AI, cybersecurity and digital marketing are highest in demand. While the technology industry has made layoffs, these workers are finding new opportunities in other sectors such as life sciences, healthcare, hospitality and travel. The airlines industry, for example, has promised more investment in tech this year to avoid technology failures.”

For more coverage of the job report, download an analysis by Staffing Industry Analysts.