Temp jobs are falling worldwide: A new warning for the job market

A temporary work crisis in France

In France, temporary employment is often seen as a barometer of the economy. Because it is highly sensitive to fluctuations, it's the first sector to reflect socio-economic turbulence. The recent data confirm it: temporary work has been declining sharply.

According to Prism'emploi's 2025 report—France's professional body for recruitment and temporary employment—temp jobs fell by 3.3% between May 2024 and May 2025, following an even steeper 7.3% drop between 2023 and 2024. In 2025, the downturn hits clerical employees (-13%) and intermediate or managerial positions (-8.3%) the hardest. Skilled and unskilled workers are relatively spared, down 1.6% and up 0.1%, respectively. The transport and logistics sector leads the decline (-7.7%), followed by services (-6.4%) and retail (-5.2%). Construction and manufacturing have stabilized for now, with only minor contractions (-0.8% and -0.3%). Some industries, such as e-commerce, digital services, and personal care, are bucking the trend, driven by online retail growth, population aging, and shortages in healthcare. Yet overall, the picture remains one of contraction.

Why is temporary work shrinking?

Analysts blame politics, but that's not all. The political turmoil that shook France after the dissolution of the National Assembly in the summer of 2024 created widespread uncertainty. Many companies have postponed or cancelled hiring plans, and many have revised their employment forecasts downward. But political instability isn't the sole culprit. The report also highlights weak economic growth (1.1% in 2024, only 0.5% in Q3 2025) and low household consumption, both of which weigh heavily on recruitment.

Another factor is the growing use of micro-entrepreneurs (freelancers). In France, there are two main types of temp contracts: the standard temporary contract and the permanent temp contract (CDI intérimaire), signed between a staffing agency and a worker for up to 36 months. Both are counted in official temp job statistics. But more and more firms now turn to self-employed contractors instead of hiring under permanent temp contracts. Critics call this unfair competition, as freelancers cost about 50.8% less to employ, according to Prism'emploi. The result benefits neither side: temp workers lose access to one of the main gateways to long-term employment, while freelancers remain underprotected and risk “disguised employment” when they work under employer-like authority from their client company.

Fewer temp jobs, more fixed-term contracts

Is this decline necessarily bad news for the French economy? Not entirely. Some analysts note that the fall in temporary jobs coincides with an increase in fixed-term contracts (CDD). Companies looking for both flexibility and employee retention find this format more suitable. Recruitment processes have become more refined, with greater focus on matching the right profiles to the right roles.

Temporary work is declining globally

It's not just France. Switzerland, Australia, Canada, South Africa, the U.S., and China are also seeing similar drops. What should prospective expats expect? Here's a look at three major destinations.

Switzerland

According to Swissstaffing, the Swiss association of employment agencies, the fall in temp work stems from a “deterioration in the global economy”. One aggravating factor: new U.S. customs tariffs on Swiss products introduced by the Trump administration. A high-level visit to Washington on August 5—by the Swiss president and the economy minister—ended in failure. President Trump refused to meet them and instead sent Marco Rubio, his foreign minister, who was unfamiliar with this type of trade negotiation. The outcome: since August 7, Swiss exports are taxed at 39%, compared with just 15% for the EU.

The impact has been severe. Swiss industries are scaling back production, sometimes drastically—especially the dairy sector. Typically, companies rely on temporary staff to handle demand fluctuations, but the current economic climate is pushing them to hold back. Temporary employment has dropped across the board, even in IT. Between July and September, temp workers logged 6.1% fewer hours than the previous year.

Still, improvement may be on the horizon. Despite the downturn, many qualified positions remain unfilled. Labor shortages persist, especially in healthcare, one of the country's biggest users of temporary staff. These market tensions reveal a deeper, structural labor shortage linked to an aging population. Switzerland loses roughly 25,000 active workers each year, even with immigration helping to offset the gap.

Canada

5 million Canadian dollars. That's the fine levied on several companies for violating temporary work permit rules (PTT). Since Canada tightened its immigration policies, the demand for low-skilled temporary workers has plummeted by 70%.

Fewer foreigners are entering Canada with a temporary work permit. Between January and July, there were 235,000 fewer arrivals compared to the same period last year. This pleases opponents of the Temporary Foreign Worker Program (TFWP): a survey by Abacus Data shows 44% of Canadians want it scrapped, with opposition highest among 18–29-year-olds (48%) and 30–44-year-olds (50%).

The Conservative Party is capitalizing on the discontent, blaming the TFWP for youth unemployment—14.6% among 15–24-year-olds in July 2025. However, Prime Minister Mark Carney refuses to abolish the program. He instead proposes a broader immigration policy reform, aiming to reduce the share of temporary residents to 5% (from 7.1%). New entry limits for temporary workers were introduced in November.

Opponents criticize companies that still advertise jobs “for expats,” arguing that it's unfair to hire foreigners while locals are unemployed.

Temporary labor remains essential to Canada's economy

Businesses argue that further restrictions would harm the economy. In Quebec, many employers say local workers cannot fill the gaps. They are already feeling the consequences of the tighter TFWP rules introduced in September 2024. Employers relying on expatriate labor insist that these workers drive growth for both companies and the national economy. Many claim they cannot find qualified Canadians for certain technical positions (like machinists), and training replacements would take too long. As a result, tighter immigration rules are forcing them to cut production—and lose ground in an already competitive market. To many, losing access to temporary foreign workers would be a “catastrophe.”

United States: temp work falls and AI rises

Data from the U.S. Bureau of Labor Statistics (BLS) published in September confirm the ongoing decline: temporary work has fallen in 38 of the past 41 months. In August alone, the U.S. lost 9,800 temporary jobs, and only 22,000 new jobs were created overall, which is far below the expected 75,000. The unemployment rate has risen to 4.3%, its highest level since 2021. President Donald Trump blamed the previous Biden administration—and even the BLS itself. After the July report, he fired BLS Director Erika McEntarfer and replaced her with E.J. Antoni, a loyal ally.

Economists attribute the decline to both global uncertainty and Trump's unpredictable policies, including volatile tariff decisions. Another factor: artificial intelligence. Amazon reportedly plans to cut 30,000 jobs worldwide, mainly white-collar roles, although the company hasn't confirmed it. Other tech giants have also reduced staff this year: Intel (-22,000 jobs), Microsoft (-3,100), Salesforce (-4,000), and Meta (-600 in its AI division). Big corporations are betting on growth with fewer employees, permanent or temporary, replaced by AI-driven efficiency. Yet despite the cuts, temporary work isn't disappearing completely. Amazon, for instance, is preparing to hire around 250,000 seasonal workers to handle end-of-year deliveries.