Why is U.S. manufacturing growing while traditional hiring data suggests factories aren’t adding workers?
Manufacturing is caught in a contradiction. According to S&P Global, in June 2026, job cuts at U.S. factories ran near their highest levels since the end of the global financial crisis in 2009. On the flip side, manufacturing is growing at its fastest pace since 2021, with the ISM manufacturing index reporting six straight months of expansion. How can both things be true?
Key Takeaways
- Manufacturing hiring isn’t slowing, but is shifting to temporary and temp-to-perm staffing models.
- Staffing firms now provide one of the earliest indicators of manufacturing hiring demand, with national payroll data alone missing a significant share of today’s manufacturing hiring activity.
- Temporary work has become a strategic pathway to permanent employment for job seekers, not a fallback option.
- Manufacturers are hiring across both frontline production and skilled technical roles.
- Flexible staffing helps manufacturers grow while managing economic uncertainty.
Production is expanding in many sectors, yet national payroll data suggests hiring remains soft. This apparent disconnect has led many observers to conclude that factories are waiting for confidence to return. However, from where staffing firms sit, manufacturing companies haven’t stopped hiring. They’ve just changed how they hire.
Read the full article: How to Win in Industrial Hiring in 2026
article BY
Rick Hermanns
President & CEO, HireQuest
ORIGINALLY APPEARED
Industry Today
August 13, 2026