2022 Contract Workforce Report | A Look Ahead to 2023

The contract workforce has experienced an unprecedented surge in demand over the past year. The global pandemic shifted the way we do business. Companies turned to contract employees to fill roles.  Contract employees may be the best solution to talent needs as the market levels out in 2023.  

2022 Contract Workforce Report Takeaways 

The most important takeaway is that the contract workforce is continuing to expand. The total number of contract workers employed in 2022 is projected to be higher than ever before, with an estimated 8 million contracts being filled in 2021 alone. This is part of a larger trend toward more flexible staffing models, which many employers have found beneficial for both their bottom line and for employee morale.  

LinkedIn Insights reported the U.S. labor market beginning to slow with hiring falling by 4.9% in November compared to October and is 20.5% lower compared to November 2021. This put hiring below pre-COVID hiring levels. Amid a slowing economy, there has been a notable uptick in certain industries taking advantage of contract workforces. Tech companies saw the highest rate of increase—with almost 30% more contracts filled than in 2020. Healthcare and hospitality were close behind with 24% and 22%, respectively. Businesses across multiple sectors are increasingly turning to contract workers as they adjust their operations to align with the market.  

We asked our audience which major field would be hit the hardest in this workforce decline:  

 

Our audience predictions were spot on. 

We found large month-over-month declines in Technology, Information and Media (-14.6% M/M), Manufacturing (-8.4% M/M), and Oil, Gas & Mining (-7.8% M/M). Hiring in Tech, Information and Media is now at its lowest level since July 2020 according to Linkedin’s Key Insight reports. The tech industry saw massive hiring gains throughout the pandemic, so while these are meaningful declines, they also signify a leveling out following the hiring boom.  

                       

As hiring declines in various industries, those hiring contractors and looking for contract work should not be weary. With more businesses turning towards flexible staffing models as a way of managing costs and meeting customer demands, there will be opportunities available for those open to contract roles in 2023—and beyond! Whether you are an employer looking for qualified contract talent or a professional interested in exploring contract work this is a great time to explore these opportunities.