Fact-checked by Grok 2 weeks ago

Temp

A temp, short for temporary employee or temporary worker, is an individual hired by an organization or through a staffing agency to fill short-term staffing needs, such as covering absences, managing seasonal demands, or completing specific projects, typically for a duration of less than one year.^[1]^[2] These roles provide businesses with operational flexibility without long-term commitments, while workers gain access to diverse job opportunities and supplemental income, often in fields like administrative support, customer service, and light industrial tasks.^[3] Temporary employment emerged prominently in the mid-20th century with the rise of staffing agencies, evolving into a key component of the global labor market amid economic shifts toward gig and flexible work arrangements.^[4] As of 2024, temporary workers constitute a significant portion of the workforce in many countries; for instance, in the United States, the Bureau of Labor Statistics reports that temporary help services employed about 2.8 million workers as of August 2024, supporting industries facing fluctuating demands.^[5] This model benefits employers by reducing recruitment costs and allowing rapid scaling, though it can expose workers to job instability and limited benefits compared to permanent positions.^[6] Legally, temps are entitled to protections under national labor standards, including fair wages, safe working conditions, and anti-discrimination measures, regardless of their short-term status.^[7] In the U.S., the Fair Labor Standards Act mandates minimum wage and overtime for most temps, while some states impose additional requirements on agencies, such as fee transparency and job placement guarantees.^[8] Internationally, organizations like the International Labour Organization advocate for equitable treatment, emphasizing that temporary contracts should not undermine workers' rights to social security or skill development.^[9] Despite these safeguards, debates persist over the precarity of temp work, prompting calls for policy reforms to enhance job security and benefits portability.

Definition and Overview

Definition

A temp, short for temporary employee, refers to a worker hired for a limited duration to address short-term needs within an organization, typically facilitated by a staffing agency that acts as the employer of record.^[10] These arrangements involve short-term labor contracts designed to fill gaps such as seasonal demands, project-based requirements, or temporary absences, without the intention of transitioning to long-term roles.^[11] Key characteristics of temp employment include fixed-term contracts that specify an end date or project completion, no expectation of permanent placement, compensation structured on an hourly or project basis rather than salary, and limited or no access to comprehensive employee benefits like health insurance, paid leave, or retirement contributions.^[12] Temp workers often lack the job security and career progression opportunities associated with standard employment, as their roles are inherently transient and tied to immediate operational needs.^[13] Temps differ from permanent employees, who hold indefinite contracts with ongoing obligations; part-time workers, who may have reduced hours but stable, long-term attachments to an employer; and freelancers or independent contractors, who self-direct their work across multiple clients without agency intermediation.^[14] Instead, temps are agency-assigned to a specific host organization for the assignment's duration, emphasizing their role as supplemental labor rather than autonomous or enduring contributors.^[13] The slang term "temp" derives from "temporary," with its noun usage for a short-term worker first attested in 1932, rooted in the Latin temporarius (lasting for a time) and emerging prominently in mid-20th-century U.S. office and clerical work contexts.^[15]

Types

Temporary employment can be classified by duration, encompassing short-term assignments lasting from a few days to several weeks, often used to cover immediate staffing needs such as employee absences or one-off projects.^[9] These short-term roles provide quick flexibility for employers facing transient demands. In contrast, seasonal temporary work is tied to specific periods of heightened activity, such as holiday retail staffing or agricultural harvesting, typically spanning weeks to months during peak seasons.^[16] Contract-based temporary employment involves fixed-term agreements lasting from several months to a few years, commonly for completing defined projects or filling roles with predictable endpoints.^[9] Temporary workers are also categorized by industry, with significant concentrations in administrative and office support roles, which account for about 24% of temporary placements and include tasks like data entry, reception, and clerical support in various sectors.^[17] Industrial and labor temporary positions represent the largest share at 36%, involving manual work in warehousing, construction, and manufacturing, where workers handle loading, assembly, or site labor to meet fluctuating production needs.^[17] Professional temporary roles, comprising 21% of placements, focus on specialized fields such as information technology, consulting, and managerial support, where experts are engaged for technical implementations, advisory services, or executive assistance on a non-permanent basis.^[17] Specialized forms of temporary employment include permatemps, who are long-term temporary workers assigned to a single employer for extended periods—often years—without receiving permanent employee benefits or status.^[18] On-call temporary workers are engaged on an as-needed basis without a fixed schedule, providing availability for sporadic demands in services or healthcare.^[19] Temp-to-perm arrangements involve hiring workers temporarily with the explicit potential for conversion to permanent positions after a trial period, allowing employers to evaluate fit before committing long-term.^[9] For instance, a temporary administrative worker might cover maternity leave for three months, while a seasonal temporary role could involve farm labor during harvest, highlighting how these types address distinct employment gaps.^[16]

History

Origins

The roots of temporary work trace back to pre-20th century practices of casual day labor, particularly during the Industrial Revolution in 19th-century Britain and the United States, where workers were hired on a short-term, as-needed basis for fluctuating demands.^[20] In agriculture, seasonal harvests and planting cycles relied heavily on casual laborers who supplemented income through irregular employment, often without long-term security.^[20] Similarly, port workers at docks in major cities like London and New York exemplified this system, queuing daily for temporary shifts to load and unload ships, a practice driven by unpredictable shipping volumes and immigrant labor influxes.^[20] By the early 20th century, these informal arrangements began formalizing in the United States amid economic volatility, particularly during the 1920s and the Great Depression of the 1930s, when businesses sought flexible staffing to handle fluctuating demand without committing to permanent hires.^[4] The first employment agencies emerged around the turn of the century, such as Katherine Felton's agency in San Francisco, established after the 1906 earthquake, initially focused on placing domestic workers but laying groundwork for broader temporary placements in response to the disaster.^[4] During the Depression, widespread unemployment—reaching 25% nationally—pushed workers into temporary roles, while employers used ad hoc arrangements to cut costs amid industrial slowdowns.^[21] A key milestone came in the 1940s with the founding of the first dedicated temporary staffing agencies for office work, including Russell Kelly Office Service in 1946 in Detroit, which pioneered short-term clerical placements, and Manpower Inc. in 1948 by Aaron Scheinfeld and Elmer Winter in Milwaukee, initially targeting accounting and auditing roles.^[4] These developments responded to postwar economic instability, including labor shortages from World War II mobilization and reconversion challenges, providing a buffer against uncertainty.^[4] The social context further propelled this shift, as women's increased entry into the workforce post-World War II—rising from 28% in 1940 to over 34% by 1945—created demand for flexible temporary roles that aligned with domestic responsibilities.^[22] Industry leaders framed temporary work as "women's work," targeting housewives for part-time office positions to offer personal fulfillment without disrupting traditional gender norms, thus embedding gender dynamics into the emerging temp model.^[23]

Post-Industrial Developments

The rise of temporary work during the 1970s and 1980s was profoundly shaped by deindustrialization, economic recessions, and neoliberal policies that emphasized labor market flexibility. In the United States, deindustrialization resulted in the loss of millions of stable manufacturing jobs, displacing workers into the burgeoning service sector where temporary arrangements became prevalent to absorb economic shocks.^[24] Neoliberal reforms, particularly under President Ronald Reagan, included deregulation of labor markets, tax cuts for businesses, and weakened union bargaining power, enabling employers to adopt contingent hiring as a strategy to reduce costs and adapt to volatility.^[25] These shifts were evident in the growth of temporary help services employment, which increased from approximately 200,000 workers in 1972 (less than 0.3% of total nonfarm employment) to 433,000 by 1982 (approximately 0.5%).^[26] The 1990s marked a period of accelerated expansion for temporary work, fueled by globalization, the proliferation of multinational staffing agencies, and the rapid growth of information technology (IT) and service sectors. Offshoring practices allowed companies to source temporary labor from lower-cost regions, particularly for IT support and back-office functions, while domestic demand surged as firms pursued just-in-time staffing to match fluctuating project needs.^[27] In the US, this era saw temporary help employment balloon to 2.7 million workers by 2000, representing 2.0% of nonfarm payrolls—more than doubling from approximately 1.1 million workers in 1990 (about 1.0%).^[26] Similar dynamics emerged in Europe, where economic integration through the European Union encouraged cross-border temporary placements, contributing to a gradual rise in contingent roles amid service-sector dominance.^[28] Key economic disruptions further entrenched temporary work's role in the 21st century. The 2008 global financial crisis prompted widespread cost-cutting, with employers slashing permanent positions and turning to temporary hires to maintain flexibility during recovery; temporary help services employment, which plummeted by over 1 million jobs from 2007 to 2010, rebounded strongly thereafter, adding nearly 1 million positions by 2019 and outpacing overall private-sector growth at triple the rate.^[29] The COVID-19 pandemic in 2020 amplified this trend by accelerating demand for remote temporary roles, especially in digital and administrative fields, as businesses pivoted to virtual operations amid lockdowns—telework among employed adults rose to 22% by late 2020, boosting staffing for short-term, location-independent tasks.^[30] Following the pandemic, temporary help employment continued to recover, reaching about 2.9 million by 2022 (around 1.8% of nonfarm payrolls) before stabilizing amid 2023-2025 economic uncertainties including inflation and supply chain issues, with minor fluctuations but overall resilience in flexible staffing demand as of 2025.^[5] These developments reflect broader statistical trends in temporary employment. In the US, the share of temporary help services in total nonfarm employment grew from under 1% in the 1970s to approximately 1.8% by the early 2020s, underscoring its integration into core labor strategies.^[29] Europe exhibited parallel patterns, though with a broader definition of temporary contracts; the EU average hovered around 11-12% in the 2020s, up from about 10% in the 1990s, driven by similar economic pressures and policy shifts toward flexibility.^[31]

Employment Agencies

Functions

Temporary employment agencies serve as intermediaries between clients and workers, performing core functions that include recruitment screening, skills matching, payroll handling, and ensuring compliance with labor laws on behalf of clients. These agencies recruit candidates through various channels, such as job boards and databases, and conduct initial screening processes involving resume reviews, interviews, and assessments to identify qualified individuals. Skills matching involves aligning worker expertise with client needs, often using specialized knowledge in sectors like administrative support or IT to ensure effective placements. Additionally, agencies manage payroll by processing wages, withholding taxes, providing workers' compensation insurance, and handling benefits for temporary staff, thereby relieving clients of administrative burdens. They also oversee compliance with employment regulations, including safety standards and labor rights, to mitigate legal risks for both parties.^[32]^[33] The placement process begins with a job requisition from the client, where agencies gather details on required skills, duration, and job responsibilities through an initial consultation. Agencies then search their candidate databases, advertise openings on platforms like social media and industry networks, and perform preliminary evaluations to shortlist suitable applicants. This is followed by interviews—first with the agency for further screening, then with the client for final selection—and culminates in on-site orientation, where agencies assist with paperwork, training overviews, and coordination of start dates to facilitate smooth integration. This structured approach enables rapid deployment of workers, often within days, to address client demands efficiently.^[34] Beyond core operations, temporary employment agencies offer value-added services such as training programs to enhance worker skills, background checks to verify qualifications and history, and performance feedback loops to monitor and improve placements. Training may include industry-specific workshops or safety certifications, while background checks typically cover criminal records, employment history, and references to ensure reliability. Feedback mechanisms involve regular check-ins with workers and clients to address issues and refine future matches, adding layers of quality control. These services help agencies differentiate themselves and support long-term client relationships.^[32] Agencies operate on a business model where they charge clients a markup on the worker's pay rate, typically ranging from 20% to 50%, to cover operational costs, overhead, and profit. This markup encompasses expenses like recruitment, insurance, and administrative support, with the billable rate to clients exceeding the worker's hourly wage. For instance, if a worker earns $20 per hour, the client might pay $24 to $30 per hour, reflecting the agency's added value in flexibility and risk management. Major global agencies execute this model at scale across international markets.^[35]^[32]

Major Players

The global temporary staffing industry, valued at approximately $665 billion as of 2024, is dominated by a handful of large firms that collectively control a significant portion of the market.^[36] The top 100 agencies account for around 40% of the overall market share, with their scale enabling extensive operations across multiple sectors and regions.^[37] Among the leading global players is the Adecco Group, a Swiss-based firm recognized as one of the largest in the industry, generating €23.1 billion (approximately $25.0 billion) in revenue for 2024 while operating in 62 countries.^[38] Another major contender is Randstad, headquartered in the Netherlands, which reported €24.1 billion (about $26 billion) in revenue for the year and specializes in professional staffing services across various industries.^[39] In the United States, key players include ManpowerGroup, founded in 1948 and a leader in industrial temporary staffing, with 2024 revenues of $17.9 billion.^[40] Complementing this is Kelly Services, which focuses on office, science, and engineering sectors, achieving $4.3 billion in revenue during the same period.^[41] Emerging in the digital space are platforms like Upwork and Fiverr, which facilitate temporary work for freelancers in creative and tech fields, though they differ from traditional agencies by operating as marketplaces rather than direct employers.^[42]

Advantages and Disadvantages

Benefits for Workers

Temporary employment provides workers with significant flexibility in managing their schedules and career paths, allowing them to select assignments that align with personal commitments and avoid long-term obligations. This arrangement is particularly beneficial for voluntary temporary workers, who report improved work-life balance through the ability to choose work hours and locations that suit their needs.^[43] Such flexibility enables entry into new industries or roles without the risks associated with permanent positions, fostering greater autonomy over professional development.^[44] In terms of skill-building, temporary roles expose workers to a variety of tasks and environments, promoting diverse experiences that enhance employability and resume value. Through work-based learning, such as informal knowledge transfer from colleagues, temporary employees often develop adaptability and situational skills, with studies indicating that 60% perceive improved job opportunities as a result.^[45] Networking opportunities arise from interacting across multiple organizations, which can lead to broader professional connections and career advancement.^[43] Financially, temporary work offers quick income to bridge unemployment gaps, providing short-term earnings boosts for low-skilled workers transitioning from welfare. In certain high-skilled sectors, temporary positions may command higher hourly rates compared to entry-level permanent jobs, allowing workers to maximize pay during short assignments.^[46] For instance, workers in fields like nursing or teaching frequently accumulate specialized skills across multiple temporary contracts, such as clinical certifications or pedagogical training, which position them for subsequent permanent offers.^[47]

Drawbacks for Workers

Temporary workers often face significant job insecurity, characterized by no guaranteed hours, the possibility of sudden terminations without notice, and challenges in planning long-term finances due to unpredictable employment duration.^[48] This instability is inherent to temporary contracts, which by definition lack the permanence of standard employment, leading to higher rates of unemployment spells and financial vulnerability compared to permanent workers.^[49] Access to benefits is markedly limited for temporary workers, who frequently receive no health insurance, paid leave, or retirement contributions from employers, often relying on minimal agency-provided coverage or personal resources. For instance, only 16.6% of temporary help agency workers have employer-provided health insurance, compared to 54.4% of workers in traditional arrangements, while eligibility for retirement plans is as low as 13% for temps as of 2017.^[14]^[50] This exclusion exacerbates economic precarity, as temporary workers must forgo essential protections that support financial and physical well-being in permanent roles. Wage disparities further compound these issues, with temporary workers earning substantially less than permanent employees in comparable positions—often 10-20% lower hourly rates after adjusting for occupation and demographics. In California, for example, median hourly wages for temps averaged $13.72 from 2008-2010, about 18% below the $19.13 for non-temps; more recent national data from 2023 shows mean hourly earnings in temporary help services at $23.03, compared to approximately $29.50 for overall private industry workers, indicating a persistent gap of around 20%.^[51]^[52]^[53] Such pay gaps stem from limited bargaining power and reduced employer investment in temporary labor.^[54] The psychological toll of temporary employment includes elevated stress from ongoing job searches, uncertainty, and stalled career progression, contributing to higher rates of depressive symptoms and poorer mental health outcomes. Research indicates that temporary contracts are associated with increased job strain, burnout, and psychosocial problems, as workers perceive lower status and security, though these effects can vary by context.^[55] While this instability offsets some flexibility gains, it predominantly undermines overall well-being for many in the sector.^[56]

Benefits for Employers

Temporary staffing provides employers with significant cost savings by eliminating the need to offer benefits like health insurance, paid leave, and retirement plans to temporary workers, which can represent a substantial portion of payroll expenses for permanent employees. Additionally, it avoids the high costs associated with recruiting, onboarding, and potential severance for full-time hires, estimated at up to one year's salary per worker in some cases. These reductions allow businesses to convert fixed labor costs into variable ones, aligning expenses more closely with revenue fluctuations.^[46] Employers benefit from scalable staffing solutions that enable rapid workforce expansion for peak seasons or short-term projects without the risk of overstaffing during slower periods. For example, manufacturing firms often hire temporary workers to manage production spikes driven by seasonal demand, maintaining efficiency and avoiding excess capacity investments. Similarly, e-commerce companies leverage temps to handle holiday surges in orders, ensuring timely fulfillment without long-term commitments.^[46]^[57]^[58] This model also mitigates hiring risks by allowing employers to evaluate candidates' performance in real work environments before transitioning to permanent roles, reducing the likelihood of costly mismatches. Temporary staffing enhances organizational agility, enabling quick adaptations to market changes through staffing agencies that handle recruitment and compliance, often filling positions within days. Overall, these advantages support sustained productivity during uncertain economic conditions.^[59]^[46]

Drawbacks for Employers

Temporary workers often lack familiarity with company-specific processes and culture, which can result in higher error rates and quality issues for employers. For instance, increased reliance on temporary staff has been shown to significantly elevate reject rates and customer returns, as these workers may prioritize speed over precision without long-term investment in the organization's success.^[60] Additionally, temporary employment arrangements are associated with higher turnover rates compared to permanent hires, exacerbating instability and the loss of institutional knowledge when workers depart.^[61] Hidden costs associated with temporary labor can substantially inflate overall expenses beyond apparent savings. Staffing agencies typically apply markups of 30-40% on worker wages to cover recruitment, payroll, and administrative services, with rates sometimes exceeding 50% and prompting caution from HR experts.^[62] Employers also face repeated training expenditures due to the transient nature of temp roles, as new workers require onboarding for each assignment, diverting resources from core operations and affecting efficiency.^[63] Productivity challenges arise from integration difficulties and potentially lower motivation among temporary staff, who may not receive the same incentives as permanent employees. Empirical analysis across European sectors indicates that a 10% rise in the share of temporary employment reduces labor productivity growth by 1-1.5% in skilled industries and 0.5-0.8% in unskilled ones, highlighting the drag on overall performance.^[64] Firms employing temps exhibit lower technical efficiency scores—around 0.76 versus 0.78 for permanent-only workforces—particularly in high-skill contexts where adaptation is more complex.^[65] Overuse of temporary workers introduces legal risks, particularly around misclassification, where long-term temps functioning as de facto permanents may lead to lawsuits over benefits, wages, and liabilities. The U.S. Department of Labor notes that misclassifying employees under temporary arrangements can result in back pay obligations, tax liabilities, and penalties for failing to provide minimum wage or overtime protections.^[66] Employers may also face joint employer liability in discrimination or safety claims, as courts increasingly hold client companies accountable alongside agencies for workplace violations.^[67]

Legal Framework

Worker Rights

Temporary workers are entitled to core labor protections under general employment laws, including minimum wage requirements, safe working conditions, and safeguards against discrimination. In the United States, for example, the Fair Labor Standards Act (FLSA) covers temporary employees as nonexempt workers, ensuring they receive at least the federal minimum wage of $7.25 per hour and overtime pay for hours worked over 40 in a week.^[7] These protections extend to maintaining safe workplaces free from recognized hazards, as temporary workers must be provided with the same health and safety standards as permanent staff.^[68] Anti-discrimination laws further prohibit adverse treatment based on race, color, national origin, sex, religion, age, or disability, applying equally to temps regardless of their employment duration.^[69] Regarding benefits, temporary workers generally have access to workers' compensation for job-related injuries or illnesses, with staffing agencies often designated as the primary employer responsible for providing coverage from the first day of assignment.^[70] Upon the end of an assignment, temps may qualify for unemployment insurance if they meet eligibility criteria, such as being unemployed through no fault of their own and actively seeking work, with agencies typically handling the associated taxes and premiums.^[70]^[71] Staffing agencies bear specific responsibilities to uphold fair treatment, including ensuring equal pay for equal work performed compared to permanent employees at the client site, as advocated through legislative efforts to eliminate pay disparities in the temp industry.^[72] Non-compete clauses in temp contracts are primarily regulated at the state level, following the Federal Trade Commission's abandonment of a nationwide ban in September 2025.^[73] Advocacy groups play a vital role in advancing these rights, with organizations like the National Employment Law Project (NELP) leading campaigns for stronger protections, including policy reforms for equal pay, safe conditions, and benefits access for temp workers.^[74] NELP has supported wins such as expanded rights in states like New Jersey and Illinois, emphasizing accountability for agencies and host employers.^[74] While these principles form the foundation, regional variations in implementation exist, as detailed in specific regulatory frameworks.^[75]

Regulations by Region

In the United States, regulations on temporary workers vary significantly by state, with federal oversight focusing primarily on wage and condition standards rather than strict limits on usage. California's Assembly Bill 5 (AB5), enacted in 2019 and still in effect as of 2025, applies the "ABC test" to classify many temporary workers as employees rather than independent contractors, granting them access to labor protections such as minimum wage, overtime, and workers' compensation, particularly impacting gig and staffing sectors.^[76] At the federal level, the McNamara-O'Hara Service Contract Act (SCA) of 1965 regulates temporary workers on government service contracts exceeding $2,500 by requiring contractors, including staffing agencies, to pay prevailing wages and fringe benefits determined by the Department of Labor, while prohibiting discrimination and ensuring safe working conditions, though it does not impose caps on temporary hiring.^[77] In the European Union, the Temporary Agency Work Directive (2008/104/EC) establishes a core framework mandating equal treatment for temporary agency workers compared to permanent staff in basic working and employment conditions—such as pay, working hours, holidays, and safety—after a qualifying period typically set at six weeks by member states.^[78] In Germany, the Hartz reforms (particularly Hartz IV, implemented 2003–2005) enhanced flexibility in temporary employment by allowing unlimited assignment durations under certain conditions, deregulating hiring and firing rules to boost labor market participation, while still requiring compliance with collective agreements on wages and social protections.^[79] Outside these areas, Australia's Fair Work Act 2009 ensures temporary workers, including those on fixed-term contracts, receive fair pay equivalent to permanent employees on a pro-rata basis, with protections against unfair dismissal after six months and limits on successive short-term contracts to prevent exploitation, as updated in 2023 to cap fixed-term arrangements at two years total.^[80] In India, the Contract Labour (Regulation and Abolition) Act of 1970 governs temporary agency workers in establishments employing 20 or more contract laborers, requiring licensing for contractors, registration for principal employers (especially large firms), and equivalent wages, facilities, and welfare amenities to direct employees, with provisions for abolition in core activities to curb casualization.^[81] Following the COVID-19 pandemic, the EU has pursued stricter oversight of temporary agencies through 2023–2025 initiatives, including proposed amendments to enhance enforcement against misclassification and improve protections for platform and agency workers, as seen in national reforms in countries like Poland and the Netherlands aimed at reducing precarious employment, and Malta's 2025 regulations extending equal treatment to agency workers.^[82]^[83]

Contemporary Trends

Gig Economy Integration

In the 21st century, the rise of digital platforms has significantly transformed traditional temporary employment by redefining temp workers as independent contractors within the gig economy. Apps such as Uber, DoorDash, and TaskRabbit have popularized on-demand, short-term gigs, allowing individuals to secure flexible work opportunities directly through mobile interfaces rather than traditional agencies.^[84]^[85] This shift emphasizes task-based assignments, where workers operate as self-employed entities, often piecing together multiple gigs to form their income, thereby blurring the lines between conventional temp roles and modern gig labor.^[86] Traditional temp agencies have increasingly overlapped with gig platforms through strategic partnerships and digital innovations to remain competitive. For instance, Randstad has developed digital tools like its talent platform and mobile app, which facilitate direct, on-demand matching of workers to short-term opportunities, integrating elements of gig-style flexibility into agency-mediated hiring.^[87]^[88] Additionally, agencies like Randstad have partnered with platforms such as twago to create bespoke gig labor solutions, enabling clients to access specialized talent pools for project-based needs.^[89] This evolution marks a broader transition from agency-dependent temp placement to hybrid models where direct app-based hiring via gig platforms supplements or replaces traditional intermediaries.^[90] By 2025, the gig economy has emerged as a dominant segment of temporary work, accounting for over one-third of the U.S. workforce and representing approximately 36% of American workers, with projections indicating growth to nearly 50%.^[91] Globally, online gig workers number around 435 million, comprising 4.4% to 12.5% of the total labor force and forming a substantial share of contingent employment arrangements.^[92]^[93] This integration has sparked ongoing challenges, particularly around worker misclassification, as the blurring boundaries between employees and independent contractors raise concerns over labor protections. In the United States, the Department of Labor's 2024 Final Rule under the Fair Labor Standards Act sought to establish a clearer economic reality test for classifying gig workers, aiming to prevent misclassification by emphasizing factors like control over work and permanency of the relationship.^[94] However, debates persist, with enforcement shifts in 2025 signaling potential easing, while misclassification remains a key issue denying workers minimum wage, overtime, and benefits.^[66]^[95]

Future Outlook

The advancement of artificial intelligence (AI) and automation is poised to reshape the temporary employment landscape beyond 2025, with a notable reduction in demand for low-skill temporary roles involving routine tasks such as data entry, clerical work, and basic assembly, where up to 30% of current work hours could be automated by 2030.^[96] Conversely, this shift is expected to heighten the need for specialized technical temporary workers in areas like AI integration, data analysis, and machine learning, with roles such as AI and machine learning specialists projected to grow by 38% to 82% globally by 2030, with higher rates in specific sectors like financial services (up to 228%), creating opportunities for skilled temps in high-demand sectors including information technology and financial services.^[97] These changes underscore a broader trend where AI displaces low-skill labor while augmenting high-skill positions, potentially exacerbating skill gaps unless addressed through targeted reskilling.^[98] Policy developments are likely to focus on mitigating insecurities in temporary work, including proposals for universal basic income (UBI) as a safety net for income variability in non-standard roles, with advocates highlighting its potential to support gig and temporary workers amid fluctuating earnings.^[99] Complementing this, portable benefits—such as health insurance, retirement savings, and paid leave that follow workers across jobs—are gaining traction through legislative efforts, enabling temporary employees to maintain coverage without tying it to a single employer and enhancing labor mobility. In 2025, U.S. states like California expanded portable benefits programs for gig and temp workers, allowing accrual of paid leave across employers.^[100]^[101] Additionally, the green transition is anticipated to generate new temporary opportunities in sustainable sectors, with roles like sustainability specialists and renewable energy engineers expected to expand by 21% to 41% by 2030, driven by climate mitigation initiatives that prioritize flexible staffing for project-based environmental work.^[97] Demographic factors will further influence temporary employment dynamics, as aging populations in Europe and Asia intensify demand for temporary healthcare workers to address shortages in nursing and elder care, with the World Health Organization projecting a shortage of 4.1 million healthcare workers in the EU by 2030 to serve an expanding elderly demographic.^[102] Meanwhile, younger workers, particularly Generation Z, are increasingly favoring flexible temporary arrangements for their alignment with work-life balance priorities, with surveys indicating that over 60% of students and early-career individuals view schedule flexibility as a key attractor for temp roles amid rising living costs.^[103] Overall, the temporary workforce is forecasted to expand significantly, with the global temporary labor market projected to reach $768.13 billion by 2030, reflecting sustained growth in flexible hiring across industries.^[104] Hybrid remote models are expected to dominate this evolution, blending on-site and virtual work to accommodate temporary staff preferences and operational needs, as evidenced by 68% of companies adopting flexible policies that support such arrangements.^[105]

References

[1]
https://www.uschamber.com/co/run/human-resources/temporary-vs-contract-employee
[2]
What Is a Temporary Employee? (With Benefits and FAQs) - Indeed
Mar 3, 2025 · Temporary employees are people who fill a position for a short period of time. Companies might hire temp employees directly or contract with a staffing agency.
[3]
What is a temporary employee? - HiBob
Temporary employees are people a company hires for a limited period of time or to complete a particular project.
[4]
What is temporary employment? | International Labour Organization
Nov 11, 2016 · Temporary employment, whereby workers are engaged only for a specific period of time, includes fixed-term, project- or task-based contracts, ...
[5]
Fact Sheet 13: Employment Relationship Under the Fair Labor ...
Short-term jobs for multiple employers may be due to the seasonal or temporary nature of the work or industry, and not the worker's business decision to ...
[6]
Temporary Employee Rules: What You Need to Know - Everlance
Jul 10, 2025 · The United States Department of Law (DOL) defines a temporary or 'temp' employee as one who is hired to work for one year or less with a ...<|control11|><|separator|>
[7]
My Work Rights | Temporary Workers - NJ.gov
May 7, 2023 · A temporary worker is someone who is employed by a "temporary help service firm" for a specific type of work. The law refers to them as " ...
[8]
New Survey Reports On Wages And Benefits For Temporary Help ...
In this Occupational Compensation Survey, temporary workers, or "temps," are workers who are supplied to clients of temporary help supply firms. These workers ...
[9]
FAQs about data on contingent and alternative employment ...
Oct 1, 2024 · ... employment. A job is defined as being short term or temporary if the person holding it is working only until the completion of a specific ...
[10]
A Look at Contingent Workers : Spotlight on Statistics
Contingent workers are people who do not expect their jobs to last or who report that their jobs are temporary. They do not have an implicit or explicit ...
[11]
[PDF] Contingent and alternative work arrangements, defined
Contingent work is any job without a long-term contract, and alternative arrangements include on-call workers and independent contractors.Missing: etymology | Show results with:etymology
[12]
Contingent and Alternative Employment Arrangements Summary
Nov 8, 2024 · ... freelance workers) were the largest of the four alternative work arrangements. ... Part-time workers were more likely to work for temporary help ...
[13]
Temp - Etymology, Origin & Meaning
Temp originates from Latin tempore, meaning "in the time of"; first a noun for temperature (1886), then adjective and noun for temporary (1909, 1932), ...Missing: employee | Show results with:employee
[14]
Non-standard forms of employment | International Labour Organization
They include temporary employment; part-time and on-call work; temporary agency work and other multiparty employment relationships; as well as disguised ...Missing: classifications | Show results with:classifications<|control11|><|separator|>
[15]
Staffing Industry Statistics - American Staffing Association
Staffing employees work in virtually all occupations in all sectors: 36% Industrial; 24% Office–Clerical and Administrative; 21% Professional–Managerial; 11 ...
[16]
PERMATEMP Definition & Meaning - Dictionary.com
a temporary or freelance worker who accepts a series of short-term assignments, thereby continuing on a long-term basis without the benefits of a permanent ...
[17]
https://americanstaffing.net/research/fact-sheets-analysis-staffing-industry-trends/staffing-industry-statistics/
[18]
Casual labour | Temporary Work, Flexible Hours, Job Insecurity
Sep 17, 2025 · A typical casual labourer of the late 19th and early 20th centuries was the dock worker. ... industrial revolutions from the 18th century onward.
[19]
A brief history of staffing - Staff Management | SMX
Mar 26, 2025 · The first known employment agencies in the United States started around the turn of the century. Most notably was the one Katherine “Kitty ...
[20]
Great Depression Facts - FDR Presidential Library & Museum
Wage income for workers who were lucky enough to have kept their jobs fell 42.5% between 1929 and 1933. It was the worst economic disaster in American history.
[21]
Women and Post-WWII Wages | NBER
The authors show that increases in female labor supply decreased both female and male wages, but had a stronger effect on women's wages.Missing: instability | Show results with:instability
[22]
The Making of the Kelly Girl: Gender and the Origins of the Temp Industry in Postwar America
### Summary of Key Points
[23]
The Radical Origins of the Deindustrialization Thesis - jstor
Aug 23, 2022 · This article inquires into the intellectual origins and radical roots of the deindustrialization thesis in Canada and the United States. Though ...
[24]
Labour market deregulation and the decline of labour power in ...
One of the most telling signs of labour market deregulation and the declining strength of workers and unions has been in the rise of part-time and temporary ...Missing: deindustrialization | Show results with:deindustrialization
[25]
[PDF] The expanding role of temporary help services from 1990 to 2008
Aug 2, 2010 · Following 1990, temp employment experi- enced another decade of phenomenal growth, expanding to 2.7 million employees and accounting for 2.0 ...
[26]
Mapping the Globalization of the Temporary Staffing Industry
Aug 6, 2025 · Beginning in the 1990s, temp agencies began to move toward becoming permanent staffing services rather than supplying short-term workers (Hatton ...
[27]
Temporary employment - OECD
Temporary employment includes wage and salary workers whose job has a pre-determined termination date. National definitions broadly conform to this generic ...
[28]
What happened to temps? Changes since the Great Recession
First, temporary employment is the first resort of employers seeking to expand or contract their employment and it is essential in workforce level adjustment.<|control11|><|separator|>
[29]
How Coronavirus Has Changed the Way Americans Work
Dec 9, 2020 · The coronavirus outbreak has changed how Americans work in some ways, from increased telework to health concerns among those who can't or choose not to work ...
[30]
Temporary and permanent employment - Statistics Explained
In other words, 11.6% of employed people in the EU were temporary workers (see Figure 5). The highest shares were recorded in the Netherlands (23.1%) and ...
[31]
What Staffing Firms Do - American Staffing Association
Because staffing firms employ the employees they assign to clients, they are responsible for paying wages, withholding and remitting employment taxes (including ...
[32]
Private employment agencies, temporary agency workers and their ...
Oct 19, 2009 · They act as intermediaries in modern labour markets, allowing enterprises greater flexibility to increase or decrease their workforces, while ...<|control11|><|separator|>
[33]
How Do Staffing Agencies Work? A Complete Guide - AtWork
The Process of Hiring Employees Through a Staffing Agency: · This stage includes reviewing resumes, conducting initial interviews, and performing background ...
[34]
Look Beyond the Markup - Staffing Industry Analysts
Dec 13, 2012 · While gross margins are around 23 percent, the average supplier internal costs run approximately 18 percent, leaving a 5 percent profit. The ...Missing: agencies | Show results with:agencies
[35]
Global Recruitment & Staffing market size is USD 519848.5 million ...
The global Recruitment & Staffing market size is USD 519848.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 9.90% from 2024 to ...Type Analysis · Application Analysis<|separator|>
[36]
100 largest global staffing firms earn $257B - Staffing Industry Analysts
Sep 4, 2025 · Combined revenue at the world's 100 largest staffing firms fell by 3% in 2024 to $257 billion, according to a recent report released by SIA.Missing: employment agencies
[37]
[PDF] The Adecco Group Factsheet 2024_05.2025
2024 Revenues €18,298 mn. Service Line. Geography (countries: 62). Client Industry2. In %. Flex. 88%. Outsourcing & other services. 10%. Perm. 2%. Career ...
[38]
FY 2024: adaptability and strategic progress for a stronger randstad.
Feb 12, 2025 · In 2024, we supported over 1.7 million talent to find work and generated a revenue of €24.1 billion. Randstad N.V. is listed on the Euronext ...
[39]
ManpowerGroup's 2024 Year in Review | Financial Highlights
We finished 2024 with results that reflect economic uncertainty across Europe and North America, with revenues of $17.9 billion, representing a 3.4% decline ...
[40]
Kelly Reports Fourth-Quarter and Full-Year 2024 Earnings
Feb 13, 2025 · Kelly's Q4 revenue was $1.2B (down 3.3% year-over-year, up 4.4% organic), with $56.7M operating loss. Full-year revenue was $4.3B (down 10.4%, ...Missing: sectors | Show results with:sectors
[41]
Upwork vs. Fiverr: A 2026 In-Depth Comparison
Aug 15, 2025 · Work marketplaces like Upwork and Fiverr are a great way to find skilled freelancers and high-quality work opportunities, no matter where you are in the world.How Does Upwork Work? · How Does Fiverr Work? · Upwork Vs Fiverr: Hiring A...
[42]
https://www.upwork.com/resources/upwork-vs-fiverr
[43]
Temporary Employment: Can Organizations and Employees Both ...
Ideally, temporary engagements offer the employing organization lower costs and increased flexibility. In turn, temporary assignments offer an individual ...
[44]
[PDF] Skills development while in temporary work? - ERIC
Competence development is required, in the interests of the individual temporary employees, in the interests of companies and the entire national economy (cf.
[45]
Why Do Firms Use Temporary Workers?
The use of temporary workers enhances labor flexibility for firms. Compared with permanent (indefinite-term) employment arrangements, temporary (fixed-term) ...
[46]
The effect of transitioning into temporary employment on wages is ...
By contrast, it is easier for employers to operate efficiently with job turnover in more flexible labour markets with lower levels of employment protection.
[47]
[PDF] The effects of non-standard forms of employment on worker health ...
These changes have also increased job insecurity amongst those workers continuing to hold ongoing/permanent jobs, adversely affecting their health, safety and ...
[48]
[PDF] Financial Fragility of Non-Standard Workers
Job insecurity and income volatility. Compared to standard workers, non-standard workers have lower job security. Their work arrangements are more likely to ...
[49]
Nontraditional Workers and Retirement Saving - Congress.gov
Apr 7, 2025 · Among workers with alternative arrangements in May 2017, eligibility for workplace plans ranged from 13% (for temporary help agency workers) to ...
[50]
Temporary Workers in California are Twice as Likely as Non-Temps ...
Aug 28, 2012 · Temporary workers face lower wages, fewer benefits, and less job security. Temporary and contingent work by its very definition is less secure than full-time ...Missing: drawbacks | Show results with:drawbacks
[51]
[PDF] B. Occupations in the Temporary Help Services Industry
This article investigates the types of jobs and wage rates found in these industries as compared with the national economy. Industry staffing. The temporary ...
[52]
[PDF] theory and research on the psychological impact of temporary ...
The increased use of temporary contracts has instigated debates on possible implications for employees' attitudes, well-being and behaviour.
[53]
TEMPORARY WORK AND DEPRESSIVE SYMPTOMS - NIH
This study aims to estimate the effect of being a temporary worker on depressive symptom severity.
[54]
Benefits of Using Temporary Staff to Manage Seasonal Retail ...
May 29, 2025 · Scalability – Temporary workers can be onboarded quickly and integrated into existing teams, helping you meet demand without overloading your ...
[55]
The Benefits of Hiring Temporary Staff in Manufacturing
May 17, 2025 · Leveraging temporary staff helps manufacturers stay productive during high productivity peak periods without overburdening their permanent ...
[56]
Temp-to-Perm Hiring Brings Benefits When Done Right - SHRM
Nov 15, 2022 · Hiring talent from among a contingent workforce can reduce the risk of making bad hiring decisions, which can be costly and time-consuming. By ...
[57]
Exploring the quality performance implications of temporary workers
Sep 12, 2021 · The results suggest that an increased usage of temporary workers significantly increases reject rates and customer returns.<|separator|>
[58]
[PDF] Temporary Workers in California are Twice as Likely as Non-Temps ...
Employment services workers span a wide range of occupations, from professional white collar occupations like nursing, accounting, and computer programming, to ...Missing: etymology | Show results with:etymology
[59]
The Art of Choosing a Staffing Agency - SHRM
Mar 1, 2012 · Markups can range from 30 percent to 40 percent to as much as 150 percent. As a rule of thumb, look very carefully at anything over 50 percent.
[60]
Hidden Costs of Temporary Workers - Training Magazine
Dec 12, 2011 · Some of the savings in using temporary workers were staggering. The fully loaded bill rate of a staffing provider was often one-half—sometimes ...
[61]
The impact of temporary employment on productivity
Mar 9, 2017 · Recent papers in the economic literature emphasise that the use of temporary contracts (TE) could have a detrimental effect on productivity.
[62]
The Effect of Employing Temporary Workers on Efficiency
Nov 16, 2021 · This study examines the impact of employing temporary workers on technical efficiency (TE) by employing stochastic frontier analysis (SFA) and meta-frontier ...<|control11|><|separator|>
[63]
Misclassification of Employees as Independent Contractors FLSA
Misclassifying employees as independent contractors is a serious problem because misclassified employees may not receive the minimum wage and overtime pay to ...
[64]
Temps, in Name Alone - SHRM
Nov 1, 2008 · Managers who rely on temporary employees should factor in the growing legal risks of using temps and independent contractors.Shared Employment · Integrated Employer Test · Joint Employer Test
[65]
Wages and the Fair Labor Standards Act
Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and ...FLSA Minimum Wage Poster · FLSA FAQs · Minimum Wage · FLSA AdvisorMissing: discrimination | Show results with:discrimination
[66]
Rights and Protections for Temporary Workers - English - Travel.gov
Feb 7, 2025 · No matter your immigration status, you have rights. Your employer cannot fire you, mistreat you, or refuse to pay you for exercising your rights.Rights And Protections For... · No Matter Your Immigration... · Additional Rights Based On...
[67]
About Employment Law: Wages, Rights & Protections - Wanta Thome
Feb 13, 2024 · Employee rights under employment law include wage standards set by the FLSA, protections against discrimination in the workplace, and health ...Ensuring Fair Labor... · Protecting Worker Interests... · Frequently Asked Questions<|separator|>
[68]
[PDF] Temp-Work-and-Unemployment-Insurance.pdf
unemployment insurance (“UI”) laws treat the temp agency as the “employer” of the employee for purposes of paying. UI taxes, workers' compensation premiums, and ...
[69]
Regular Unemployment Insurance (UI) | Georgia Department of Labor
The Unemployment Insurance (UI) program provides temporary income for workers who are unemployed through no fault of their own.
[70]
Federal Legislation Would Ensure Equal Pay for Temp Workers and ...
Jul 17, 2020 · The Restoring Worker Power Act would help eliminating temp workers' second-tier status and demand accountability from the industry.Missing: clauses | Show results with:clauses
[71]
Non-Compete Clause Rulemaking - Federal Trade Commission
Jan 5, 2023 · A non-compete clause is a contractual term between an employer and a worker that blocks the worker from working for a competing employer, or ...Missing: equal | Show results with:equal
[72]
Temporary Workers - National Employment Law Project
In 2023, tens of thousands of temp workers in New Jersey and Illinois won robust new rights and protections after years of organizing, protesting, and lobbying.
[73]
Contracted Workers - National Employment Law Project
Ensure that all workers, including contracted workers, are covered by core labor and employment rights, and advocate for more enforcement by government agencies ...
[74]
Worker classification and AB 5 FAQS (Frequently Asked Questions)
Sep 24, 2025 · AB 5 requires the application of the “ABC test” to determine if workers in California are employees or independent contractors for purposes of ...
[75]
Fact Sheet #67: The McNamara-O'Hara Service Contract Act (SCA)
The McNamara-O'Hara Service Contract Act (SCA) covers contracts entered into by federal and District of Columbia agencies that have as their principal purpose ...Missing: temporary | Show results with:temporary
[76]
Temporary Agency Workers - Employment, Social Affairs and Inclusion
The Directive lays down the principle of non-discrimination, regarding the essential conditions of work and of employment, between temporary workers and workers ...
[77]
Understanding Temporary Employment and Professional Employer ...
Nov 13, 2024 · Hartz-IV Reforms: Implemented between 2004-2005, these reforms allowed for unlimited assignment durations under specific conditions, thereby ...
[78]
Fixed term contract employees - Fair Work Ombudsman
From 6 December 2023, new rules apply when engaging employees on fixed term contracts. A fixed term contract terminates at the end of a set period.
[79]
Contract Labour (Regulation & Abolition) Act, 1970
An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters ...
[80]
Europe Legal Update Q3 2025 - Staffing Industry Analysts
Europe Legal Update Q3 2025. Important legal developments this quarter include proposed changes to agency regulations in Poland and Netherlands; and staffing ...
[81]
The State of Gig Work in 2021 - Pew Research Center
Dec 8, 2021 · Indeed, the emergence of companies like Uber, TaskRabbit or DoorDash has expanded the way people earn money and added another dimension to the ...Missing: redefining | Show results with:redefining
[82]
The future of gig work: From apps to AI to agile workforces
Sep 8, 2025 · Platforms like Fiverr, Upwork, TaskRabbit, Uber and DoorDash normalized the idea that workers could piece together income through multiple, ...
[83]
What is the Gig Economy and Its Benefits? - Tipalti
A gig economy is a labor market where independent workers are hired for short-term commitments, rather than salaried employees.
[84]
Randstad advances shift to 'digital' with plans to expand talent platform
Apr 24, 2025 · Randstad, the world's largest staffing firm, provided an update on its transition to a digital-first talent firm powered by the Randstad Talent Platform.
[85]
Randstad debuts new app, revolutionizing connection between ...
Sep 18, 2024 · Key features of the Randstad app include: · 24/7 Job Searching: The power to search and apply for jobs, regardless of the time or day.
[86]
The New Freelancers: Tapping Talent in the Gig Economy
Jan 17, 2019 · In 2018, with Randstad's support, the company added a second solution: twago Talent Pool, which creates and manages bespoke gig labor platforms ...<|control11|><|separator|>
[87]
Gig Workers Were Promised a Better Deal. Then They ... - WIRED
Jan 17, 2022 · Just Eat's Randstad partnership is an attempt to test a new model for the gig economy in the UK. As delivery apps struggle with staffing ...
[88]
2025 Gig Economy Trends for Freelancers and Self-Employed ...
Oct 21, 2025 · In 2025, more than 70 million Americans are estimated to be part of the gig economy, representing approximately 36 percent of the total ...
[89]
World Bank estimates there are 435 million online gig workers globally
Sep 8, 2023 · There are between 154 million and 435 million online gig economy workers across the globe - representing 4.4% to 12.5% of the global workforce.
[90]
Gig Economy Statistics (2025): Growth, Market Size & Trends
Sep 9, 2025 · The global number of gig workers is approximately 435 million worldwide. Online gig workers form 4.4-12.5% of the labor force. The U.S. has ...Missing: credible | Show results with:credible
[91]
Employee or Independent Contractor Classification Under the Fair ...
Jan 10, 2024 · The 2021 IC Rule explained that independent contractors are not employees under the FLSA and are therefore not subject to the Act's minimum wage ...Missing: debates | Show results with:debates
[92]
DOL Easing Up on Independent Contractor Misclassification ...
May 5, 2025 · 1. New Enforcement Standards Effective May 1 · 2. The 2024 Independent Contractor Rule Remains in Effect – For Now · 3. State Rules Still Apply.Missing: debates | Show results with:debates
[93]
Generative AI and the future of work in America - McKinsey
Jul 26, 2023 · Generative AI has the potential to change the future of work in America. We look at which jobs will be in demand and which ones may be at ...Missing: specialized | Show results with:specialized
[94]
[PDF] Future of Jobs Report 2025 - World Economic Forum: Publications
Inflation is predicted to have a mixed outlook for net job creation to 2030, while slower growth is expected to displace 1.6 million jobs globally. These ...Missing: temporary | Show results with:temporary
[95]
The relationship between artificial intelligence and low-skilled ...
Dec 15, 2024 · Some findings suggest that AI adoption leads to declining opportunities for low-skilled workers, with high-skilled labor benefiting more from ...
[96]
The Role of Universal Basic Income in the Future Gig Economy
Sep 10, 2025 · Proponents argue that UBI could serve as a vital safety net in the future gig economy, mitigating the risks associated with income instability ...Missing: temporary | Show results with:temporary
[97]
Portable Benefits For Workers Can Benefit The American Economy
Oct 10, 2025 · New laws supporting portable benefit accounts may greatly enhance the attractiveness of gig work and strengthen labor markets, ...
[98]
Healthcare workforce: new model projects EU needs up to 2071
Dec 6, 2024 · The ageing population in Europe is driving an increased demand for healthcare services, with the proportion of citizens aged 65 and over ...
[99]
63% of job-seeking students are attracted to flexible schedules
Feb 29, 2024 · September Handshake research indicated that over 63% of students said they would be more likely to apply for employment with flexible scheduling.
[100]
Global Temporary Labour Market to Reach $768.13 Billion by 2030
Jul 12, 2023 · Global Temporary Labour Market to Reach $768.13 Billion by 2030: Increasing Demand for Temporary IT Workers Drives Growth - ResearchAndMarkets.
[101]
The Future of Remote Staffing: Trends to Watch in 2025 - LTVplus
1. Hybrid work models are now the norm · 68% of U.S. companies offer a hybrid or flexible work policy, reflecting a significant shift toward flexible work ...