Contingent Workforce
By TNTSEO United
Last updated: September 2026
A contingent workforce consists of people whose jobs are temporary or not expected to continue. For an employer, the key distinction is whether the work offers ongoing employment. A short schedule alone does not make a job contingent, and using an outside provider does not automatically make every worker contingent.
In July 2023, 6.9 million U.S. workers, 4.3% of total employment, held contingent jobs on their sole or main job, according to the latest published U.S. Bureau of Labor Statistics survey of contingent and alternative employment arrangements, released November 8, 2024.
At FIS Recruitment, our temporary employees stay on our payroll while working for you.
What is a contingent workforce?
A contingent workforce is the part of a workforce in jobs that are temporary or not expected to last. The U.S. Bureau of Labor Statistics bases contingent status on the expected duration of employment. It measures the employment arrangement separately, so hiring through an agency does not settle both questions.
The BLS release defines contingent jobs this way: "Contingent jobs are those that people do not expect to last or that are temporary." Those workers lack an implicit or explicit contract for ongoing employment in their jobs.
In plain English, ask whether the job itself is expected to continue. A part-time office employee in an ongoing role is not contingent simply because of limited hours. A full-time employee hired to cover leave can be contingent. A worker's plan to leave an otherwise ongoing job for personal reasons does not make that job contingent under BLS's definition.
How big is the contingent workforce?
In July 2023, 6.9 million U.S. workers, 4.3% of total employment, held contingent jobs on their sole or main job, according to the latest published U.S. Bureau of Labor Statistics survey of contingent and alternative employment arrangements, released November 8, 2024.
BLS used a single contingent-work estimate in that survey, equivalent to its broadest earlier definition. These are historical survey results, not a count of today's available candidates. BLS separately reported the following alternative arrangements for workers' sole or main jobs.
| Arrangement | Workers | Share of total employment |
|---|---|---|
| Independent contractors | 11.9 million | 7.4% |
| On-call workers | 2.8 million | 1.7% |
| Temporary help agency workers | 945,000 | 0.6% |
| Workers provided by contract firms | 862,000 | 0.5% |
Source: U.S. Bureau of Labor Statistics, Contingent and Alternative Employment Arrangements, July 2023 data, released November 8, 2024.
Contingent status and alternative arrangements overlap, so these arrangement counts must not be added to the contingent total.
The four types of contingent worker
The BLS alternative arrangements are temporary help agency workers, independent contractors, on-call workers and workers supplied by contract firms. These are useful categories for discussing staffing, but they are not automatically contingent jobs. Keep the employment relationship separate from whether the worker expects ongoing employment.
Temporary help agency workers
The staffing agency employs and pays the worker assigned to your business. Consider this model for seasonal production or leave coverage. The agency relationship identifies who supplies and pays the person; it does not, by itself, establish that the person's employment is contingent under BLS's definition.
Independent contractors
A correctly classified independent contractor is self-employed. Your business pays for services rather than putting that person on employee payroll. Consider this arrangement for a defined specialist deliverable, subject to classification review. A project description or contractor label alone does not establish the worker's legal status.
On-call workers
On-call workers are called in when needed. The employing organization pays them; if you employ them directly, they remain on your payroll. Consider an on-call employee pool for intermittent coverage. Being available as needed does not necessarily mean the employment relationship itself has an expected end.
Contract-firm workers
The contract firm employs and pays people whose services it supplies to a client. BLS describes workers usually assigned to a single client at that client's workplace. Consider this model when evaluating a contracted service, such as site support, and clarify responsibilities with the provider before work begins.
When a contingent workforce makes sense
Consider contingent staffing when the work has an identifiable limit: a seasonal peak, a project, an absence or a temporary need for specialist skills. Start with the work you need completed and its expected duration. Then choose the employment arrangement and confirm who will manage each part of the assignment.
- Seasonal peaks: Describe the added workload, shifts and point at which demand should return to normal.
- Project work: Define the deliverable and the handoff that will mark completion.
- Covering leave: Specify the duties to cover and how you will handle a changed return date.
- Testing a role: Set a review point before deciding whether the work supports a permanent position. Do not imply permanent hiring is certain.
- Specialist skills: Identify the expertise needed for a fixed period and arrange a transfer of knowledge before the assignment ends.
If you already expect an ongoing position and want to evaluate a potential employee in the role, discuss temp-to-hire. If the work itself is still uncertain, be explicit about that uncertainty when describing the assignment.
The risks to manage
The risks to plan for are incorrect worker classification, knowledge leaving with the worker, and gaps in safety training. Treat each as a separate management task. Confirm the legal relationship, assign responsibility for site instruction, and plan the handoff before an assignment reaches its end.
Classification: Whether someone is an employee or an independent contractor is a legal question decided by the facts. Misclassification carries real liability. Confirm the arrangement with the U.S. Department of Labor, your state labor department or an employment attorney instead of relying on the contract's title.
Knowledge transfer: Ask for usable process notes, the location of working files and a handoff to the person taking over. Make documentation part of the assignment rather than a final-day request.
Safety: OSHA identifies shared safety responsibilities for staffing agencies and host employers. Agree who will explain site hazards and provide the required training before work starts. Do not assume that onboarding paperwork proves someone understands the equipment or work area.
Temps, contractors or temp-to-hire: a quick comparison
Choose agency temps for a temporary staffing need, consider a properly classified independent contractor for defined services, and discuss temp-to-hire when you intend to evaluate a potential permanent employee. The practical differences concern employment, payment and the planned ending. Confirm assignment and conversion terms before anyone starts work.
| Question | Temporary via an agency | Independent contractor | Temp-to-hire |
|---|---|---|---|
| Who employs them | Staffing agency; host responsibilities also apply | Self-employed, if correctly classified | Agency during evaluation; client after conversion |
| Who runs payroll | Agency | No client employee payroll; client pays for services | Agency before conversion; client afterward |
| Best for | Consider for peaks, projects or leave coverage | Consider for defined specialist services | Consider for evaluating an intended permanent hire |
| How it ends | Assignment ends or changes under agreed terms | Services conclude or agreement ends under its terms | Conversion if agreed; otherwise assignment ends or is reassessed |
Sources: FIS Recruitment's published staffing descriptions, IRS guidance on self-employment and OSHA temporary-worker guidance, checked September 19, 2026. "Best for" entries are planning suggestions.
Read how temp to hire works and compare temp vs temp-to-hire vs direct hire. When planning an agency assignment, also review what a staffing bill rate covers.
How we supply contingent staff
At FIS Recruitment, our temporary employees stay on our payroll while working for you. We phone screen and interview candidates before presenting them, conduct reference checks, and handle onboarding paperwork for our temps. Tell us the duties, shifts and expected duration so we can discuss the assignment with you.
Include the worksite, essential skills, reporting manager and whether permanent employment is a possibility. Read how we screen candidates before preparing your staffing request.
Frequently asked questions
Contingent workforce questions usually turn on the difference between job duration and the employment arrangement. Use the answers below to keep those concepts separate when planning staffing. The BLS categories describe survey responses; they do not replace a legal review of an individual worker's classification.
What is a contingent workforce?
A contingent workforce consists of people in jobs that are temporary or not expected to last. BLS focuses on expectations of ongoing employment, rather than simply whether someone works part time or comes through an agency. For staffing decisions, describe the work and its expected ending first. Then identify the employment arrangement, who pays the worker and who will manage the assignment.
What is the difference between a contingent worker and a temporary employee?
Contingent describes the expected duration of a job, while temporary employee can describe a short assignment or someone supplied by an agency. Those ideas can overlap, but agency employment alone does not establish contingent status under BLS's definition. For your staffing plan, clarify both the assignment's expected duration and the underlying employment relationship. Avoid treating every person working through an outside provider as automatically contingent.
How many contingent workers are there in the U.S.?
BLS reported 6.9 million contingent workers, or 4.3% of total employment, on their sole or main job in July 2023. That is the latest published survey result checked for this article, not a present-day headcount. It measures contingent status separately from alternative arrangements such as agency employment and independent contracting. Do not add those alternative-arrangement counts to the contingent total, because the groups overlap.
Are independent contractors part of the contingent workforce?
Some independent contractors are contingent workers, but independent contracting does not automatically make a job contingent. BLS measures the arrangement separately from contingent status, so an ongoing independent business relationship should not be treated as temporary just because the worker is a contractor. For employers, there is also a separate legal question: whether the worker is correctly classified. Confirm that question with the relevant agency or an employment attorney.
What are the risks of using contingent workers?
Risks include worker misclassification, incomplete knowledge transfer and gaps in safety training. Confirm classification based on the facts, document processes before an assignment ends and agree who handles site-specific instruction. OSHA identifies safety responsibilities for both staffing agencies and host employers. A staffing arrangement should therefore include clear communication about the worksite and duties. It should also identify who receives the worker's files, procedures and unfinished work.
How does a staffing agency fit into a contingent workforce?
A staffing agency employs and pays temporary staff who work at a client business. That arrangement can support a contingent staffing plan, although BLS does not classify every agency worker as contingent. Confirm the assignment's purpose, expected duration, supervision and safety responsibilities with the provider. If permanent hiring is intended, discuss temp-to-hire and the conversion terms explicitly instead of assuming an agency assignment will become a permanent position.
Planning contingent staff for peak or January?
Start your next staffing request with the role, shift, worksite and expected duration. Tell us whether you need temporary coverage or want to discuss a path to permanent employment. At FIS Recruitment, we can discuss those needs with you before you decide how to structure the assignment.
Call 800.248.8687, email info@fisrecruitment.com or open a requisition.
This article is not legal, tax or HR-compliance advice. Confirm worker classification and workplace obligations with the relevant labor agency or an employment attorney.
