What percentage of the workforce is contingent?

Contingent workers represent approximately 35-40% of the US workforce, and this percentage is growing. Including all non-traditional work arrangements, some estimates reach higher.

Why do companies use contingent workers?

Companies use contingent workers for flexibility, access to specialized skills, covering peaks and leaves, evaluating potential permanent hires, managing costs, and reducing headcount commitments while maintaining productivity.

How do staffing agencies fit into contingent workforce?

Staffing agencies are primary suppliers of contingent talent, particularly temporary workers. They handle sourcing, employment, payroll, compliance, and management—solving the complexity challenges for client companies.

What's the difference between contingent and permanent workers?

Permanent workers are regular employees with ongoing employment, benefits, and job security. Contingent workers have defined assignment periods, may have limited benefits, and have less employment security but more flexibility.

What percentage of the workforce is contingent?

Contingent workers represent approximately 35-40% of the US workforce, and this percentage is growing. Including all non-traditional work arrangements, some estimates reach higher.

Why do companies use contingent workers?

Companies use contingent workers for flexibility, access to specialized skills, covering peaks and leaves, evaluating potential permanent hires, managing costs, and reducing headcount commitments while maintaining productivity.

How do staffing agencies fit into contingent workforce?

Staffing agencies are primary suppliers of contingent talent, particularly temporary workers. They handle sourcing, employment, payroll, compliance, and management—solving the complexity challenges for client companies.

What's the difference between contingent and permanent workers?

Permanent workers are regular employees with ongoing employment, benefits, and job security. Contingent workers have defined assignment periods, may have limited benefits, and have less employment security but more flexibility.

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What is Contingent Workforce?

Q: What is contingent workforce?

Contingent workforce refers to workers who are not permanent employees: temporary workers, contractors, freelancers, consultants, and gig workers. They provide labor flexibility without permanent employment commitments.

Definition: Contingent workforce is the segment of workers who are not permanent employees, including temporary workers, contractors, freelancers, consultants, and gig workers, providing companies with labor flexibility.

Also known as: Contingent Labor, Non-Permanent Workforce, Flexible Workforce, Alternative Workforce

Quick Summary

TL;DR

Contingent workforce refers to workers not on permanent payroll: temps, contractors, freelancers, consultants, and gig workers. This segment is growing rapidly, representing 30-40% of the US workforce. Staffing agencies are primary suppliers of contingent talent, making this market segment central to agency business.

35-40%

of US workforce is contingent

Key Facts

What It Includes

Temps, contractors, freelancers, gig

Definition

Market Size

35-40% of workforce

BLS data

Growth Trend

Consistently increasing

Market analysis

Key Challenge

Compliance complexity

Industry observation

Why Contingent Workforce Matters

Companies increasingly need workforce flexibility—scaling up for projects, covering leaves, accessing specialized skills, and managing labor costs. The contingent workforce provides this flexibility but brings compliance complexity, management challenges, and quality concerns. Staffing agencies solve these problems, making contingent workforce strategy central to agency value proposition.

Common Pain Points

1Companies need flexibility but struggle to find quality contingent talent
2Compliance risks with worker classification and co-employment
3Managing a blended workforce of employees and contingent workers
4Quality and cultural fit concerns with non-permanent workers

How Staffing Agencies Serve the Contingent Workforce Market

Agencies provide value across the contingent talent lifecycle.

1
Sourcing and Qualification
Finding quality contingent workers requires extensive networks, skill verification, and ongoing relationship management that most companies can't maintain internally.
2
Employment and Compliance
Agencies handle employment, payroll, benefits, and compliance—removing risk and administrative burden from client companies.
3
Assignment Management
Managing contingent worker performance, addressing issues, handling extensions, and ensuring productivity throughout assignments.
4
Conversion and Career
Many contingent roles convert to permanent. Agencies facilitate smooth transitions and help workers build careers through sequential assignments.

Result

Staffing agencies enable companies to access contingent workforce benefits while managing complexity.

Contingent Workforce Deep Dive

Types of Contingent Workers

Contingent workforce encompasses multiple categories with different characteristics: temporary workers (short-term assignments through staffing agencies), independent contractors (self-employed specialists), freelancers (project-based workers), consultants (advisory expertise), and gig workers (platform-mediated tasks).

Temporary Workers

Agency-employedLargest staffing segment

Independent Contractors

Self-employed1099 classification

Freelancers

Project-basedOften remote/creative

Consultants

Advisory expertiseHigher-level engagements

Why Companies Use Contingent Workers

Primary drivers: flexibility to scale up/down quickly, access to specialized skills not needed full-time, covering leaves and peak periods, evaluating potential permanent hires (temp-to-perm), managing labor costs, and reducing permanent headcount commitments.

Compliance Considerations

Contingent workforce management involves significant compliance requirements: worker classification (employee vs contractor), co-employment risk management, benefits and healthcare obligations, tenure limits, and equal treatment requirements. Staffing agencies specialize in managing these complexities.

Common Misconceptions

Contingent workers are lower quality than permanent employees
Contingent workforce is only for entry-level roles
Using contingent workers always saves money
Contingent workers don't need management

Contingent Worker Types

Key characteristics by category
Type	Employment	Typical Duration
Temporary	Agency W-2	Days to months
Contract	Agency or 1099	Months to years
Freelance	1099/Self-employed	Project-based
Consultant	Corp-to-corp or 1099	Engagement-based
Gig Worker	1099/Platform	Task-based

Key characteristics by category

Frequently Asked Questions

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Quick Summary

Key Facts

Why Contingent Workforce Matters

Common Pain Points

How Staffing Agencies Serve the Contingent Workforce Market

Sourcing and Qualification

Employment and Compliance

Assignment Management

Conversion and Career

Contingent Workforce Deep Dive

Types of Contingent Workers

Why Companies Use Contingent Workers

Compliance Considerations

Common Misconceptions

Contingent Worker Types

Related Terms

Frequently Asked Questions

1What is contingent workforce?

2What percentage of the workforce is contingent?

3Why do companies use contingent workers?

4How do staffing agencies fit into contingent workforce?

5What's the difference between contingent and permanent workers?

Related Resources

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