Staffing Industry Update - February 2026
USTech Solutions
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TitleStaffing Industry Update: Key Developments for the Week ofFebruary 2nd2026 Audience Thisis an internal industryupdate is intended to inform and engage all US Tech Solutionsstaff on the USTech Intranet. Publish Date 02/03/26 Staffing Industry Update: Key Developments for the Week ofFebruary 2, 2026 This is the monthly HR and staffing industry update. This roundup highlights key developments from the past week, including rising burnout rates, persistent tech talent shortages, evolving AI-related hiring trends, and early signs of economic strain acrossemployment sectors. Here's a closer look at some of the key news: 1.Staffing EmploymentPicks up Speedin Early 2026:
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The American Staffing Association recently released its monthly report for January 2026, highlighting a continued upward trend in staffing employment during the middle of the month (https://americanstaffing.net/research/asa-staffing-industry- data/staffing-index/).For the week of January 12 through January 18, the ASA Staffing Index rose by 2.6 percent to reach a rounded value of 84. This growth follows a positive pattern as the industry moves further into the new year, with staffing firms reporting that no single specific factor appears to be restricting this expansion. When compared to the same timeframe in the previous year, staffing employment levels were 2.0 percent higher. This year over year increase shows an improvement from the 1.2 percent growth rate recorded just one week prior. Despite this overall progress, the number of new staffing starts saw a decline during the third week of the year, falling by 8.4 percent from the preceding week. Approximately 32 percent of staffing organizations noted an increase in new assignments, which is slightly lower than the 41 percent weekly average observed throughout the previous year. The four week moving average for the index experienced a slight dip, settling at a rounded value of 80. However, when looking at the broader picture of temporary and contract staffing for the period ending January 18, employment figures remained 1.8 percent higher than they were during the equivalent period in 2024. This data suggests that while there is some weekly volatility, the general trajectory for the contract workforce remains slightly above historical comparisons for this time of year. Noah Yosif, the chief economist for the ASA, noted that the weekly shifts in the index are currently outpacing the levels seen in recent years, which indicates a steady build in momentum for the sector. He
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observed that while a full scale recovery is still developing, the current environment is shaped by a relatively quiet labor market. This atmosphere has tempered both the urgency of employers to hire and the inclination of employees to seek new roles elsewhere. While the ASA data provides a near real time measure of the staffing sector, broader national employment figures face significant hurdles. The U.S. Bureau of Labor Statistics recently announced that the official January employment situation report, originally expected on February 6, will be delayed indefinitely. This postponement is a direct result of a partial federal government shutdown, which has forced the suspension of data processing and dissemination. Consequently, official government figures will not be available until federal funding is restored and operations resume. 2.Revenue Growth for Temporary Staffing Holds Steady in December:
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According to the most recent SIA Pulse Survey report, revenue growth for the temporary staffing sector remained consistent as the previous year drew to a close (https://www.staffingindustry.com/research/research- reports/americas/us-staffing-industry-pulse-survey-report-january- 2026-selected-highlights).Participating staffing firms reported a median revenue increase of 4 percent for December, mirroring the growth rate observed in the prior reporting period from October. This stability suggests a resilient baseline for the industry despite broader economic fluctuations and the challenges posed by recent federal reporting delays. The engineering sector emerged as a significant leader in growth during this period, posting a median revenue increase of 11 percent. Following closely behind, the information technology staffing segment also demonstrated robust performance with a 10 percent median growth rate. These figures highlight a sustained demand for highly specialized professional talent, particularly in technical fields that remain critical to ongoing infrastructure and digital transformation projects across the country. Other segments of the industry showed varying degrees of performance, with allied healthcare recording a median growth of 6 percent. In contrast, the office, clerical, and industrial staffing sectors remained flat during December. The only area to experience a decline in median revenue was travel nursing, which saw a 2 percent decrease, reflecting a continued adjustment in the healthcare staffing market following several years of heightened demand.
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3.Strategic Acquisition Positions New Controlling Shareholder at Kelly Services: Kelly Services recently announced a significant shift in its corporate governance following the acquisition of a majority stake by Hunt Equity Opportunities (https://ir.kellyservices.com/node/25881/pdf).This entity, which functions as an indirect subsidiary of Hunt Companies, has become the controlling shareholder after purchasing more than three million shares of the organization's Class B common stock. This specific class of shares holds nearly all ofthe company's voting rights, and the transaction represents approximately 92.2 percent of the total Class B stock available. The purchase was completed for an initial sum of $106.0$ million, with provisions for an additional $15.2$ million payment if the company's market capitalization reaches $1.20$ billion within the next four years. James Christopher Hunt, the chief executiveofficer of Hunt Companies, expressed strong optimism regarding the future of the partnership and
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noted that the new ownership is focused on accelerating growth. He emphasized a commitment to supporting the current management team, led by chief executive officer Chris Layden, in realizing the full potential of the nearly 80 year old staffing provider. As part of this transition, the board of directors has undergone a major restructuring to reflect the new ownership. James Christopher Hunt has joined the board and assumed the role of chairman. He is accompanied by several other new designees, including Angela Brock- Kyle, Edward Escudro, and James Hunt. These individuals will serve alongside existing board members, including President Chris Layden, Robert Cubbin, Amala Duggirala, and Leslie Murphy. This mix of new and seasoned leadership is intended to maintain organizational continuity while introducing fresh perspectives on value creation. The change in control follows the departure of several longtime board members who stepped down effective January 30. Outgoing directors include Terrence Larkin, Gerald Adolph, George Corona, InaMarie Johnson, and Peter Quigley. The company extended its gratitude to these individuals for their years of service and for establishing the foundation upon which the current expansion strategy is built. The sale marks the conclusion of the controlling interest held by the Terrence E. Adderley Revocable Trust K, which had previously entered into a definitive agreement to divest its holdings earlier in the month.
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4.Emerging Risks in the Gig Economy as Account Sharing Gains Traction: A recent report by TransUnion has uncovered a growing trend within the gig economy where workers are increasingly renting or selling their platform credentials to unverified third parties (https://newsroom.transunion.com/nearly-one-in-three-millennial- and-gen-z-gig-workers--rent-their-gig-platform-accounts-to- unverified-users/).The 2026 Gig Economy Worker Report, released in mid-January, indicates that some individuals are using these methods to supplement their income, allowing unauthorized users to perform services such as ridesharing, delivery, and digital freelancing under an established name. Industry experts warn that this practice introduces significant security gaps, as it bypasses the vetting and background check processes designed to protect both consumers and platforms.
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The study highlights a distinct generational divide in these behaviors, with younger workers significantly more likely to participate in account sharing. Approximately 31 percent of both Gen Z and Millennial workers admitted to renting out their accounts,while the rates for Gen X and Baby Boomers were notably lower at 20 percent and 7 percent, respectively. The trend of selling accounts entirely followed a similar pattern, with 27 percent of Millennials and 22 percent of Gen Z participants reporting they had sold access to their profiles. These figures suggest that economic pressures may be driving younger demographics to treat their digital work identities as tradable assets. Beyond the risks associated with unauthorized workers, the report also detailed the challenges gig earners face from consumers on these platforms. Over one-third of workers reported being defrauded by a customer, while 43 percent experienced a practice known as tip- baiting. This occurs when a customer offers a substantial tip to ensure prompt service, only to significantly reduce or remove the gratuity entirely after the task is completed. These experiences have led to a decrease in confidence regarding platform security, with fewer than half of all gig workers surveyed describing current identity verification processes as highly effective.
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5.Forecasted Workforce Absences Reach New Heights for Super Bowl Monday: Research from the workforce management platform UKG suggests that a record number of employees plan to skip work on the Monday following this year’s Super Bowl (https://www.ukg.com/company/newsroom/its-new-record- estimated-226-million-us-employees-plan-miss-work-super-bowl- monday). Based on a survey of over 1,200 American adults, it is estimated that 26.2 million workers will be absent on February 9, a significant increase from the 22.6 million who missed work after the game last year. This widespread absenteeism and the resulting dip in productivity are projected to have a substantial economic impact, potentially costing businesses upwards of $5.2 billion. The data provides a detailed look at how employees intend to manage their time off after the matchup between the Seattle Seahawks and the New England Patriots. Approximately 13.1 million people have already
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secured pre-approved leave, while 6.5 million intend to swap shifts with colleagues to cover their responsibilities. However, unplanned absences remain a concern, with 3.3 million workers planning to report as sick despite being healthy and 1.6 million expected to skip work entirely without any prior notification to their employers. In addition to full-day absences, millions of other employees are expected to experience disruptions to their typical schedules. An estimated 4.9 million people plan to arrive at work late without informing their supervisors, and another 8.2 million remainundecided, intending to make a last minute choice on Monday morning. HR experts suggest that these figures represent a growing trend where major cultural events serve as significant triggers for workforce volatility, emphasizing the need for organizationsto develop proactive staffing strategies well in advance of the game. Clear communication and early planning appear to be the most effective tools for mitigating these disruptions. According to the study, 56 percent of employees believe that if managers initiated coverage discussions weeks ahead of time, it would lead to fewer unexpected call outs. Furthermore, 54 percent of respondents indicated they would be less likely to miss a shift if their employer provided transparent expectations regarding staffing needs for the day. Managers who recognize the influence of pop culture and major sporting events on their teams are often better positioned to maintain operational continuity. That's all the news from the staffing world thismonth! We'll keep you in the loop about what's happening nextmonth, so stay tuned!