The number of US temp jobs fell by 8,700 in July; however, June’s large decline of 48,900 temp jobs was revised to a 22,600 drop, according to data released today by the US Bureau of Labor Statistics.

Temp jobs totaled just above 2.7 million in July. On a year-over-year basis, they were down 5.19%.

The temp penetration — temp jobs as a percent of total employment — fell to 1.71% in July from 1.72% in June.

“Today’s jobs report, along with recent economic data, provide clear signs that the US economy and labor market are broadly and gradually cooling, which paves the way for the Federal Reserve to start lowering interest rates with the goal of putting the US economy on a path of sustainable growth,” Timothy Landhuis, VP of research at SIA, said.

“While the temporary staffing industry remains near a cyclical low point, and may remain under pressure in the near term,” Landhuis continued, “we note that an eventual return to sustainable growth in client industries would likely bring a substantial uptick in demand that staffing firms will need to be ready to meet.”

Total Employment

Total US nonfarm employment rose by 114,000 jobs in July with slower growth than in previous months. The US, on average, gained 215,000 jobs per month for the past 12 months.

In addition, the US unemployment rate rose to 4.3% in July from 4.1% in June. On the flip side, the college-level unemployment rate fell to 2.3% in July from 2.4% in June.

The BLS reported that employment continued to trend up in healthcare, construction, and transportation and warehousing. The information sector lost jobs.

• Healthcare added 55,000 jobs in July, down from its average monthly gain of 63,000 jobs over the past 12 months. Parts of healthcare adding jobs included home healthcare services, up 22,000; hospitals, up 20,000; and nursing and residential care facilities, up 9,000.
• Construction added 25,000 jobs in July, which is above its average monthly gain of 19,000 jobs over the past 12 months.
• Transportation and warehousing added 14,000 jobs. This sector has added 119,000 jobs since January.
• Information employment fell by 20,000 jobs in July.

“Temperatures might be hot around the country, but there’s no summer heatwave for the job market,” Becky Frankiewicz, president of North America and chief commercial officer at ManpowerGroup, said in a press release. “With across-the-board cooling, we have lost most of the gains we saw from the first quarter of the year. Our real-time data shows the number of new jobs and overall open jobs contracting, demonstrating continued softening as employers and employees sit tight.”

Average hourly earnings for all employees on private nonfarm payrolls rose by eight cents to $35.07 in July. Average hourly earnings of private-sector production and nonsupervisory employees rose by nine cents to $30.14.

For greater analysis and insight on today’s jobs report, please see SIA’s August 2024 Jobs Report.