US labor market engagement and staffing trends

Overview

In late 2026, US employee engagement reached a 15 year low, dropping to 29 percent in the third quarter. This decline, noted by Gallup, is particularly pronounced among remote and hybrid workers. The trend coincides with a reduction in average weekly hours for full time employees, especially those under age 35, driven by burnout and declining wellbeing.

Despite low engagement, US staffing hours rose 11 percent year over year for the week of October 24, reaching a 2026 high. This growth was primarily led by the industrial sector, including manufacturing, logistics, and data center construction. However, office and clerical roles saw a decline of 7 percent.

Economic sentiment remains cautious. A study of business leaders indicated that 69 percent expect layoffs or reductions in force within the next 12 months, a significant increase from 2024 levels. While the private sector added 86,000 jobs in October, professional and business services reported a loss of 27,000 positions.

Entities

United States · American Staffing Association · IBISWorld · ADP

Timeline

1 day ago

[BUSINESS] 2 sources
US Staffing Hours Reach 2026 High Amid Low Employee Engagement
US staffing hours hit a 2026 high driven by industrial growth, even as employee engagement drops to its lowest level since 2011 and 69% of business leaders anticipate layoffs.
6 days ago

[BUSINESS] 3 sources
US employee engagement hits 15-year low amid declining work hours
US employee engagement has dropped to 29 percent, its lowest level since 2011, as workers report higher burnout and shorter weekly hours, particularly among remote and younger professionals.

Sources

careeraheadonline.com · hrkatha.com · marqueestaffing.com · southfloridareporter.com · staffinghub.com