The American Staffing Association (ASA) Staffing Index increased 0.1% to 87 for the week of March 9-15, 2026, extending a year-over-year growth streak to 25 out of the past 26 weeks. Staffing jobs were 5.3% higher than the same period in 2025, while temporary and contract employment ran 4.0% above prior-year levels.
The data paints a clear picture: employers are hiring, but they are hiring cautiously - preferring contract and temporary workers over permanent headcount commitments.
The Numbers in Detail
The ASA Staffing Index, which tracks weekly changes in temporary and contract staffing employment, reveals a market that is steadily gaining momentum:
| Metric | Value | Change |
|---|---|---|
| Weekly Index | 87 | +0.1% WoW |
| 4-Week Moving Average | 86 | Stable |
| YoY Staffing Jobs | +5.3% | - |
| YoY Temp/Contract Employment | +4.0% | - |
| New Starts (Week 11) | - | +5.2% WoW |
| Companies Reporting Gains | 35% | Below 41% avg |
New starts - the number of workers beginning new temporary assignments - increased 5.2% from the prior week. However, only 35% of staffing companies reported week-over-week gains in new assignments, below the 41% average from 2025.
This suggests that growth is concentrated among certain staffing segments and regions rather than broadly distributed across the market.
Why Contract Over Permanent
The preference for temporary and contract workers over permanent hires reflects several converging pressures:
Economic Uncertainty
The US labor market remains in what economists describe as a "low-fire, low-hire" phase. Companies are reluctant to lay off existing workers (layoffs remain near historic lows) but equally reluctant to make permanent hiring commitments. Temporary staffing fills the gap - providing productivity without long-term obligations.
Testing Before Committing
Employers are increasingly using contract roles as extended auditions. A Green Key Resources analysis found that companies are "testing the waters" with temporary workers before converting successful contractors to full-time positions. This try-before-you-buy approach reduces hiring risk in an uncertain market.
AI Transition Period
Many organizations are in the process of deploying AI tools that will reshape their staffing needs. Hiring permanent employees for roles that may be automated within 12-18 months carries significant risk. Contract workers provide flexibility to adjust headcount as AI capabilities evolve.
Budget Flexibility
Temporary staffing is typically classified as operating expense rather than headcount, giving finance teams more budget flexibility. In a period where boards are scrutinizing every permanent hire against AI alternatives, contract labor avoids triggering those conversations.
The Staffing Index as Economic Indicator
The ASA Staffing Index has historically served as a leading indicator of broader labor market trends. Temporary staffing typically rises before permanent hiring picks up, as companies test demand before committing to headcount.
The current 25-week growth streak suggests that underlying labor demand is stronger than headline metrics indicate. If the pattern holds, permanent hiring should accelerate in Q2-Q3 2026.
However, this cycle may be different. The structural shift toward flexible work arrangements - accelerated by AI, remote work capabilities, and the gig economy - may mean that a larger share of job growth permanently stays in the temporary and contract category rather than converting to traditional employment.
Sector-Level Trends
The staffing growth is not evenly distributed. Based on ASA data and industry analysis, the fastest-growing segments include:
Professional and business services. Demand for skilled temporary workers in accounting, marketing, IT support, and administrative functions is growing as companies outsource specialized tasks.
Healthcare. Travel nursing and temporary clinical staffing continue to see elevated demand, though growth has moderated from pandemic-era peaks.
Industrial and manufacturing. Reshoring and nearshoring initiatives are driving demand for temporary production and logistics workers, particularly in automotive, semiconductors, and advanced manufacturing.
Technology. Contract developers, data analysts, and AI specialists are in high demand as companies staff up for AI implementation projects without making permanent hires.
What This Means for Virtual Assistant Services
The staffing data directly validates the business model of virtual assistant companies:
Structural tailwind. The economy-wide shift from permanent to flexible staffing is exactly the trend that virtual assistant services ride. Companies that are reluctant to add headcount but need productivity support are the core market for VA services.
Try-before-you-buy applies. Just as companies use temporary staffing agencies to test workers, businesses increasingly use virtual assistant engagements as a low-risk entry point to outsourced support. Successful VA relationships often expand into larger, ongoing contracts.
The "low-hire" paradox. Companies that aren't hiring full-time still need work done. Virtual assistants fill this gap without the overhead, benefits, or long-term commitments of traditional employees - making them an ideal solution in a cautious hiring environment.
The ASA data confirms what the virtual assistant support industry has experienced firsthand: in a market where companies want productivity but not payroll commitments, flexible staffing solutions are winning.