US temporary jobs rose by 5,300 in December 2024, according to data today from the Bureau of Labor Statistics. November’s increase in temp jobs was also revised upward to 6,200 from an initially reported increase of 1,600.

Still, a note of wariness remains for the industry.

“While we welcome signs of a continued rebound for staffing, we also advise continued caution in the near term,” SIA Economist Michael Schultz said.

The most recent data releases have broadly painted a negative image for staffing, Schultz said. While the latest headline Purchasing Managers Index figures from the Institute of Supply Management showed continued sequential improvement, the employment subindex declined markedly.

Likewise, manufacturers’ orders and shipments continue weakening and more broadly, the macro hiring environment is soft and continues softening, save for a hiring uptick in the leisure and hospitality sector, he continued. Further, Tuesday’s update to the SIA | Bullhorn Staffing Indicator found the holiday season pullback was a bit more pronounced in 2024.

“While SIA projects a return to growth in 2025, here at the start of the year we are not yet out of the woods,” Schultz said.

Totals

US temporary employment totaled approximately 2.66 million jobs in December 2024. It was still below its high point of nearly 3.2 million in March 2022.

Overall, total US nonfarm payroll rose by 256,000 jobs in December 2024 for total employment of approximately 159.9 million based on revised numbers. Bloomberg reported the increase exceeded all but one forecast in a Bloomberg survey of economists.

December’s penetration rate — temp jobs as a percent of total employment — was 1.67%, unchanged from November’s revised reading of 1.67%.

The US unemployment rate ticked down to 4.1% in December from 4.2% in November. Separately, the college-level unemployment rate also edged lower to 2.4% from 2.5%.

“Data for November and December suggest that the long-awaited stabilization in overall temporary help volumes may finally be here,” said Timothy Landhuis, VP of research at SIA. “While trends in manufacturing remain mixed, overall job gains appeared solid in December across most other sectors of the US economy which we believe should provide a tailwind for staffing moving into the new year.”

Employment trended up in healthcare, government and social assistance, according to the BLS:

• Healthcare added 46,000 jobs in December. Subsectors with growth were home healthcare services, up 15,000 jobs; nursing and residential care facilities, up 14,000; and hospitals, up 12,000. Healthcare had added an average of 57,000 jobs per month in 2024.
• Government gained 33,000 jobs in December. Social assistance employment increased by 23,000, mostly in individual and family services (up 17,000).
• Leisure and hospitality added 43,000 jobs. It had increased an average of 24,000 jobs per month in 2024.
• The BLS noted retail trade gained 43,000 jobs in December following a loss of 29,000 in November.

“December’s jobs report delivers a strong finish to 2024 and is a promising sign of what’s to come in the new year,” Ger Doyle, US country manager at ManpowerGroup (NYSE: MAN), said in a statement today. “However, the labor market may still face challenges until inflation is under more control, which is necessary to prevent slower hiring, layoffs and reduced job growth.”

The average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents to $35.69. Average hourly earnings of private-sector production and nonsupervisory employees rose by six cents to $30.62.

For more information on the jobs numbers, see SIA’s January 2025 Jobs Report, released today.