Welcome to this week’s StaffingHub Brief, your strategic intelligence roundup for staffing agency leaders. In this week’s issue:
- U.S. private employers added an average of 39,250 jobs per week for the four weeks ending March 28, the fourth consecutive week of strong job creation.
- Industrial staffing hours rose 4% year over year and IT hours rose 2%, even as U.S. staffing hours slipped sequentially in the week ended April 4.
- Several Federal Reserve districts reported increased demand for temporary and contract workers as firms stayed cautious about permanent hires.
- ManpowerGroup reported Q1 revenue of $4.51 billion, up 2.9% on a constant currency basis, with U.S. revenue down 4.9%.
- California’s SAFE Act, which would require staffing firm registration and proof of workers’ compensation coverage, advanced to the state Senate Judiciary committee.
Temp demand is building amid uncertainty
U.S. private employers added an average of 39,250 jobs per week for the four weeks ending March 28, the fourth straight week of strong job creation, according to the ADP NER Pulse. The acceleration from 26,000 the prior week signals real momentum in private-sector hiring. (Learn more)
Several Federal Reserve districts reported increased demand for temporary and contract workers, according to the latest Beige Book. Firms remained cautious about committing to permanent hires. Boston staffing contacts described increased demand for temp contract workers “but not for direct hires.” Chicago reported that “demand was up as companies hesitated to hire long-term employees amidst elevated uncertainty.” Minneapolis contacts reported “healthy new job orders.” (Learn more)
Why it matters: The same uncertainty that is freezing permanent headcount decisions is filling your temp pipeline, so agencies already close to their clients will capture the demand before it gets shopped around.
The staffing indicators are mixed but not alarming
U.S. staffing hours held flat year over year in the week ended April 4 but slipped 4.2% sequentially, according to the SIA/Bullhorn Staffing Indicator. The sequential decline was largely attributable to business closures during the Good Friday holiday week. Commercial staffing revenue edged up 1% year over year while professional staffing was flat. (Learn more)
Industrial hours led growth at +4% year over year, and IT hours rose 2%. Office/clerical hours fell 9% year over year. The report noted that up until the Good Friday week, U.S. staffing hours had been at or improving on their highest year-to-date levels since early March.
Why it matters: Industrial and IT are growing while office/clerical drops 9%. If your book skews administrative, that mix is worth examining now.
ManpowerGroup sees stabilization, but the U.S. is a drag
ManpowerGroup reported Q1 2026 revenue of $4.51 billion, up 2.9% on a constant currency basis, with Chair and CEO Jonas Prising citing “disciplined execution and continued stabilization of revenue trends across key markets.” The Manpower brand grew 6% year over year on an organic, constant currency basis. However, U.S. revenue fell 4.9%, while the company’s Experis professional staffing division dropped 9% on the same basis, reflecting soft professional demand. ManpowerGroup also announced a global transformation targeting $200 million in cost savings by 2028. (Learn more)
Why it matters: When the world’s third-largest staffing firm is posting U.S. revenue declines and restructuring for cost efficiency, margin pressure is an industry condition, not a company-specific problem.
California’s SAFE Act would add a new compliance layer for staffing firms
California’s Staffing Agency Fair Employer (SAFE) Act, SB 1032, advanced to the state Senate Judiciary committee after clearing the Senate Labor committee, according to SIA. The bill would require staffing firms operating in California to pay an annual registration fee, submit proof of workers’ compensation coverage, and be listed on the California Department of Industrial Relations website. Staffing buyers would be prohibited from using unverified agencies. An earlier version pegged the registration fee at $5,000; the current version leaves the amount to the Labor Commissioner’s discretion.
The ASA opposes the bill, arguing existing law already requires workers’ comp coverage and that the legislation would not stop rogue firms already operating outside the law. The temp staffing industry in California employs more than 2 million workers with an estimated payroll of $41.4 billion. (Learn more)
Why it matters: If you operate in California, confirm your workers’ comp documentation is current and audit-ready before this bill moves any further.
AI regulation in hiring is accelerating at the state level
State legislatures across the country are moving to regulate how employers use AI in employment decisions, including pay-setting and candidate screening. Multiple bills are targeting algorithmic hiring tools that may produce discriminatory outcomes, even when the discrimination is unintentional. (Learn more)
The legal exposure mirrors what the industry saw when client-directed bias claims began surfacing: the tool’s developer is one defendant, but the employer using it is another. For staffing firms running AI-assisted screening in their ATS or sourcing stack, that exposure extends to your operations. (Learn more)
Why it matters: Document what each AI tool in your stack does, what data it uses, and how its outputs influence placement decisions. That paper trail is your first line of defense when regulators or plaintiffs start asking questions.
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