Temp Labor Rises in August; Total Job Growth Beats Estimates

Source: Staffing Industry Analysts
By: Jake Tiger
Publication Date: September 4, 2026

Temporary jobs grew by 6,800 in August, marking the eighth consecutive month of growth, according to data released Sept. 4 by the US Bureau of Labor Statistics.

“Temporary help employment continued its recovery in August,” SIA Economist Michael Schultz said. “This also marks the second month in a row where the preliminary estimate also provided a positive year-over-year comp. The industry is definitively back to growth, though we note that growth is not consistent across firms, geographies or client verticals.”

August’s increase amounted to a 0.3% month-over-month increase and a year-over-year improvement of 1.5%, the highest since 1.6% in October 2022.

US temporary employment totaled approximately 2.5 million jobs in August. Temp employment was at its high point of nearly 3.2 million jobs set in March 2022.

August’s penetration rate — temp jobs as a percentage of total employment — was unchanged at 1.58%.

Total Employment

Total US nonfarm payroll grew by 162,000 jobs in August for total employment of approximately 159.1 million, exceeding the increase of the prior three months combined. Barring a downward revision, it’s the year’s second-highest monthly gain and beats Bloomberg economists’ average estimate of 55,000.

June and July’s employment numbers were revised up a combined 55,000 jobs. After initially showing labor-market contraction, July’s total employment was revised upward by 44,000 for estimated job growth of 21,000.

The unemployment rate was unchanged in August at 4.1%.

Sectors

Sectors adding jobs in August include leisure and hospitality, government, healthcare and manufacturing. Jobs were down in the information and finance industries.

Leisure and hospitality led job growth in August, adding 62,000 jobs, driven by a 59,000 gain at food services and drinking places.

Government employment increased by 35,000, primarily in local government, which added 42,000 jobs to offset federal and state declines.

Healthcare employment increased again, adding 13,000 jobs, but the pace of its growth has started to flatten in recent months. Over the last year, the sector has averaged 32,000 new jobs each month.

Manufacturing employment increased by 16,000 jobs, continuing the industry’s 2026 recovery. Machinery manufacturing and fabricated metal product manufacturing saw the largest gains, each adding 6,000 jobs.

In the information and finance industries, employment declined by 23,000 and 11,000 respectively.

Commentary

“The whiplash is hard to ignore,” Glassdoor Chief Economist Daniel Zhao said in a press release. “The data has swung hard from month to month, and revisions keep rewriting what we thought we knew, so the underlying trend is tough to read.”

Zhao said the uncertainty could be due to the slow hiring pace. As the labor market stagnates, small employment changes in either direction become more pronounced, making it hard to confidently assess the market.

While employment numbers have improved, Laura Ullrich, Indeed’s director of economic research, cautioned that it may take time for frustrated workers to feel these changes.

“The US labor market continues to tread water in many respects. Hires, quits and layoffs are low, and monthly payroll employment growth isn’t strong enough to provide the relief many are seeking,” Ullrich said in a press release. “If you are already employed, this labor market still feels stable, and today’s report likely reads very positive. But if you are looking for work, have recently graduated or are re-entering the labor force, the squeeze is real.”

There were initial worries that AI would replace jobs, but some now see it as a driving force behind recent labor market gains. Würk CEO Deborah Saneman said AI and data centers have increased demand for skilled workers, specifically construction workers, electricians and HVAC technicians.

Ger Doyle, ManpowerGroup’s North America regional president, offered a similar stance in his analysis of the BLS report: Most of the labor market remains below last year’s hiring levels, but employers are still investing in a handful of areas they see as critical to future growth. Facilities and construction is one of the few categories still growing, driven in part by data-center development, where hiring demand is up 46% year to date.”

Upward Revisions

The new jobs report also revised previously reported temp numbers. June’s increase of 11,000 was revised upward to a gain of 16,900. July’s gain was revised upward to 5,200 from 3,400; on net, temp employment in July was 7,700 higher than previously reported.

Total nonfarm employment in June was 11,000 higher than previously reported, and July’s increase was revised upward by 44,000.

For more analysis, read SIA’s September 2026 US Jobs Report.