Report: U.S. manufacturers turn to temp firms for hiring

What this means for your job search: Prepare to highlight your expertise in AI, automation, and system optimization, as these skills are increasingly sought after to manage new technologies. Expect more opportunities for contract or temp-to-perm positions, reflecting a broader industry shift towards flexible hiring. Demand for U.S. manufacturing workers remains significantly stronger than traditional labor reports suggest, according to a report from Hirequest , a Goose Creek, South Carolina-based staffing and recruiting service provider. Hirequest says that manufacturing staffing revenue in Q1 and Q2 is tracking at approximately three times its pre-pandemic level, reflecting sustained demand from manufacturers nationwide. That revenue was driven by hiring demand across food production, metal fabrication, solar assembly, packaging, and other industrial sectors. That growth runs counter to a report from S&P Global that job cuts at U.S. factories in June 2026 ran near their highest levels since the end of the global financial crisis in 2009. According to Hirequest, the disconnect between those two reports is evidence of a fundamental shift in hiring practices. While traditional employment reports primarily measure permanent payroll additions, staffing firms often see hiring demand weeks or even months earlier, as manufacturers increasingly turn to temporary and temp-to-perm staffing models as a workforce expansion strategy. Another change in workforce hiring patterns is being triggered by new technology. While AI and automation continue transforming factory floors, HireQuest says the technology is increasing—not replacing—demand for skilled workers who can operate, maintain, and optimize advanced manufacturing systems. "The narrative that manufacturers have stopped hiring simply doesn't match what we're seeing every day," said Rick Hermanns, President and CEO of HireQuest. "Manufacturers haven't eliminated hiring, but have fundamentally changed how they hire. More companies are using temporary and temp-to-perm staffing to maintain flexibility while continuing to expand production." Further evidence for a continued demand in hiring came from a report by the California-based research and advisory firm Staffing Industry Analysts (SIA) , which said that industrial staffing revenue was